This year’s budget reveals the growth plan of the nation. It is reflected in the strong CAPEX growth planned in the budget.
This year’s budget has brought in many answers to many questions in the financial field for a long time. Recently the Indian economy is on its path to steady recovery.
The capital markets are showing positive sentiments in the economy and the PLI schemes are helping many sectors.
The idea of growth is reflected in the plan of strong CAPEX. The plan is to increase it by ₹2 lakh crores, which is more than 35% growth over the last year that spent ₹5.5 lakh crores.
That is the signal of the nation moving from a consumption-driven country to an investment-driven country. But this transition would only be gradual, and when done, it would create structural growth opportunities across multiple industries.
The most attractive part of the recent economic condition is that, it has a relatively benign fiscal deficit of 6.4% in FY23. India is doing well where other global economies floundered, spending and managing deficits.
India has succeeded in driving the investments in the nation, but what is needed is to create a business-friendly nature. This is something that the government is emphasising. They are doing everything to improve the business environment of the nation.
For this, the budget launched a trust-based governance model along with the thrust on digitalization. This governance model will fulfil India’s target of the 25-year economic growth plan by enhancing the efficiency of organisations and individuals.
Just like in any other policy, execution is the key to success and India can achieve it. The present-day strong track record on ease of doing business will make this new model a successful stepping stone to alter the business environment.
Just like any emerging economy, MSME is the backbone of the economy. But the pandemic has adversely affected this sector, with many of them battling for survival. The ECLGS scheme introduced in 2020 has aided many in the sector to recover.
To make it more efficient, the government extended and enhanced it. One such way it will be done by interlinking Udyam, e-Shram, Aseem and other such portals.
Another area of focus is digitalization, where initiatives are undertaken to digitize education, e-passport, banking and payments, and others.
By giving importance to the digital revolution, it places India at the forefront of this global transformation.
Then there is the focus on developing the infrastructure through the PM Gati Shakti scheme. All of these policies will lead to development, but the issue lies in execution, which this government will overcome.
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