The Indian Government has embraced an optimistic and futuristic approach for the road ahead. The Economic Survey tabled in the Indian Parliament on 31st January talks of a complete recovery and focuses on the medium-term. It highlights the key socio-economic reforms implemented during the last 8 years that have put India on a solid trajectory of inclusive and sustainable growth. During her speech on the Union Budget, the Finance Minister articulated the powerful Saptarishi paradigm that would guide the Amrit Kaal. Let us explore the power of these 7 priorities.
Inclusive Development: This budget is for all – women, youth, senior citizens, tribals, farmers, artisans, entrepreneurs, and the middle class. It has brought in a knowledge-intensive approach to solve farmers’ problems and opened new dimensions of crop farming for regaining our lost crops, popularly known as millets and now emphatically honoured as ‘Shree Anna’. The agricultural credit target of 20 lakh crore with greater focus on animal husbandry, dairy and fisheries will further transform the landscape. Setting up of the National Digital Library for children and adolescents will strengthen the learning infrastructure at Panchayat and ward levels. Creation of vernacular material will encourage the reading habit in the hinterland with several positive benefits for young minds.
Reaching the last mile: This requires a sustained and accelerated emphasis on vulnerable socio-economic groups and backward areas. The success of data-driven governance through the Aspirational Districts Programme, is now being replicated in 500 blocks across India through the Aspirational Blocks Programme, anchored by NITI Aayog. These blocks will witness saturation of essential government services and schemes. The Pradhan Mantri Particularly Vulnerable Tribal Group Development Mission with an outlay of 15,000 Crores will be a gamechanger in improving the life of the tribal population with basic facilities.
Infrastructure & Investment: The Government’s continuous thrust on infra expansion continues with bullish spirits. Instead of hand-outs, investment of 10 lakh-crore (3X rise from 2019) which is 3.3% of the GDP will not only create assets but also create jobs and spur private investment in infrastructure through PPPs. At the same time, the government’s commitment towards macroeconomic stability and fiscal discipline is reflected through a consistent reduction in fiscal deficit to 5.9% in FY24 (BE) with a further target of reducing it below 4.5% by FY26. The 50 years’ interest free loans to states for capex creation with emphasis on quality checks, will ensure last mile capital formation. It underscores the spirit of cooperative fiscal federalism.
Unleashing the Potential: Good Governance is the key to a nation’s progress and entails providing a transparent and accountable administration which works for the welfare of the common citizen. Whether it is Mission Karmayogi that focuses on capacity-building of government officers or the reduction of 39,000 compliances, the constant focus has been on ensuring trust-based governance and efficient administration. The State Support Mission under NITI Aayog is another vital programme that will complement these efforts. It will be continued for three years and further strengthen Centre-State relations on the path of decentralised development.
Green Growth: The government is consistently using the green lens to socioeconomic development of India so that we can achieve net-zero targets. Whether it is through a focus on green energy, green infrastructure, green jobs or green finance, every element will contribute to the larger objective of achieving climate goals and achieve the Panchamrit declarations. Mission LiFE envisaged by Prime Minister Modi aims at creating a worldwide movement for an environmentally conscious lifestyle. The National Green Hydrogen Mission, with an outlay of 19,700 crores, will reduce dependence on fossil fuels and provide market leadership to India in this emerging space. A unique nature-based solution is the proposed MISHTI programme, which envisages improving climate resilience and biodiversity along the coastline by large-scale plantation of mangroves. On the industry side, the vehicle scrapping policy will provide support for replacement of old vehicles and ambulances and promote a cleaner environment. Some of these programmes have been incubated at NITI as promising ideas. We are delighted that they have now become a part of the mainstream policy implementation with specific budget allocations. Youth Power: Discerning observers would have clearly noticed that the government is nurturing the Amrit Peedhi through a Lifecycle Approach. Several programmes feed-in to the development of individuals from school-going age till they become job creators – whether it is by reinforcing the National Education Policy, the PM Kaushal Vikas Yojana 4.0 designed to provide modern skills like robotics and mechatronics, or the National Apprenticeship Promotion Scheme through a stipend for 47 lakh youth. Young entrepreneurs and women-led SHGs would benefit from scale through the marketing channels being provided for ODOP, GI and other handicraft products in the proposed Unity Malls across state capitals.
Robust Financial Sector: India’s banking sector has successfully transitioned its journey from the twin balance sheet crisis to deleveraged corporates and a solvent, well-capitalised banking system. NPA ratio at 7 years’ low and the double-digit credit growth rate are factors that indicate an optimistic growth of the banking sector with better assets and quality supervision. Direct tax benefits for the middle class strata are a welcome relief.
In essence, the Budget reflects the government’s commitment to bottom-up and holistic growth. The Saptarishi Approach will bring in defining changes that will positively catalyse the growth story of Bharat while ensuring ‘Sabka Saath, Sabka Vikas’.
