The first Budget of the new government presented by Finance Minister Nirmala Sitharaman sets a clear direction for making India a Viksit Bharat by 2047 and, at the same time, reflects a prudent balance between growth imperatives and fiscal consolidation.
The focus on manufacturing in this Budget is a significant highlight, especially, to provide the necessary strategic duty reduction to enable the manufacturing sector to access inputs to become part of global supply chains. By reducing Customs duties on key components and raw materials, the government has taken a decisive step towards enhancing the competitiveness of Indian manufacturing. Also, the emphasis on developing investment-ready “plug and play” industrial parks in partnership with states and the private sector is particularly noteworthy. This initiative, coupled with the sanctioning of twelve industrial parks under the National Industrial Corridor Development Programme, will significantly enhance India’s manufacturing infrastructure. The focus on skilling will further support the manufacturing capabilities.
The Budget’s commitment to infrastructure development is evident in its substantial allocation of Rs 11.11 trillion for capital expenditure, amounting to 3.4 per cent of GDP. This investment in building and improving infrastructure will have a strong multiplier effect on the economy, as in the past, benefiting various sectors, including logistics and supply chain operations.
