Mr. Prakash Hinduja Hails New Budget As A Strategic Step Toward India's Brighter Economic Future
The latest Budget stands out as a testament to strategic continuity and measured progress for our nation. While it may not be revolutionary, it represents a significant refinement in India's economic approach, skillfully balancing fiscal prudence with growth ambitions. This nuanced shift from short-term, populist measures to long-term growth strategies reflects a maturing vision for India's future, bringing us closer to Prime Minister Modi’s vision of a ‘Viksit Bharat’ by 2047.
Commitment to Fiscal Discipline and Growth
One of the key highlights of this Budget is the government's steadfast commitment to fiscal consolidation. With a fiscal deficit target of 4.9% for this year and a further reduction to 4.5% next year, we are witnessing a responsible approach to public finance management. This fiscal discipline, alongside a sustained capital expenditure of 3.6% of GDP, demonstrates a delicate balance between consolidation and growth stimulation.
Equally notable is the emphasis on job creation and economic expansion. The introduction of five schemes designed to create employment and skilling opportunities for 4.1 crore youth over five years underscores the government's commitment to leveraging our demographic dividend.
Support for MSMEs and Regional Growth
The focus on the manufacturing sector and MSMEs is particularly encouraging. These enterprises, being the backbone of our economy, will benefit from the Credit Guarantee Scheme for MSMEs in the manufacturing sector and enhanced mandatory onboarding in TReDS. Such measures are set to improve ease of doing business and access to finance.
The creation of 12 new industrial parks under the National Industrial Corridor Development Programme is a significant step towards boosting industrial capacity and regional development. Coupled with the ‘Purvodaya’ plan for eastern States, this initiative reflects a commitment to balanced regional growth. The focus on affordable and urban housing also promises to drive job creation across various skill levels and stimulate economic growth.
A Strong Signal to Investors
On the taxation front, the reduction of corporate tax rates for foreign companies from 40% to 35% sends a strong message to international investors. Combined with other investor-friendly policies, this move is likely to attract higher Foreign Direct Investment, further integrating India into global value chains.
While the Budget presents a positive macro picture, there is room for more direct benefits to Indian investors. A more aggressive approach in this area could have provided an additional boost to domestic capital formation.
Looking Ahead
In summary, this Budget scores a solid 8/10. It lays a strong foundation for India’s continued economic ascent by balancing social welfare with economic growth. The government's emphasis on employment, infrastructure, and ease of doing business is crucial for our journey towards becoming a $5 trillion economy.
As Mr. Prakash Hinduja, Chairman of Hinduja Group, Europe aptly put it, "This Budget sets the stage for a brighter economic future, combining responsible fiscal management with a forward-looking approach to growth and development." Now, it is up to all stakeholders—government, industry, and civil society—to collaborate and turn these plans into reality.
About the Hinduja Group
The Hinduja Group is one of India’s premier diversified and transnational conglomerate. Employing about 200,000 employees, with a presence across 38 countries, it has a multi-billion-dollar revenue. The Group was founded over a hundred years ago by Shri PD Hinduja whose credo was "My duty (dharma) is to work so that I can give." The Group owns businesses in Mobility, Digital Technology, Banking and Financial Services, Media, Project Development, Lubricants and Specialty Chemicals, Energy, Real Estate, Trading, and Healthcare. The Group also supports charitable and philanthropic activities across the world through the Hinduja Foundation.
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