Narendran noted that the budget resonated with the current needs of the nation
The first of two-goal strategy is to support the economic revival and recovery as well as build the infrastructure of the 21st century for a modern India. The other goal is to gain from the multiplier effect and crowd in private investments, Finance Minister Nirmala Sitharaman has explained to industry stalwarts.
Urging the private sector to support the virtuous cycle of growth and to invest, she said that investment opportunities abound in the country.
The Government has extended the benefit of the lower corporate tax rate to new manufacturing units by one more year, till March 2024.
“There are many sunrise sectors where India has taken the lead, such as vaccines, genomics, space, atomic energy etc. India has proven its prowess in the adoption of digital and the start-ups are an enabling force for innovation and new ideas,” Sitharaman said on 5 Feb 2022.
“The corporate sector should not lose this opportunity for higher growth,” she added during CII-organised interaction with the industry.
She explained that the issue of rural distress was being addressed in multiple ways. The budget has enabled access to tractors and other farm equipment through rentals as well as making credit available.
The Government has ensured the availability of nutrients and fertilisers at affordable prices, despite the increase in global prices. Multiple welfare schemes have provided support for housing, cooking gas, electricity, healthcare etc.
Responding to the lower allocation to MNREGA as compared to the revised estimates of last year, she clarified that the budget allocation this year has been pegged at the allocation of last year. Given that it is a demand driven scheme, higher allocation would be provided as per the demand.
Responding to industry suggestions, the Finance Minister acknowledged the need to be watchful of the increases in interest rates in developed countries and the high commodity prices. She welcomed the industry’s suggestion of a regular dialogue on some of these external challenges.
On the privatisation of the two public sector banks and one general insurance company, as suggested in last year’s Budget, Sitharaman said that the Government is committed to taking forward the announced privatisations.
Welcoming the Minister at the session, CII President T V Narendran noted that the budget resonated with the current needs of the nation and also laid the foundation for a high growth trajectory towards India @100 in 2047.
He appreciated the focus on capital expenditure in the budget and expressed that it would set in motion the virtuous cycle of employment, consumption and growth and would also crowd in private investments. fiinews.com
