Finance Minister Nirmala Sitharaman, while presenting her fourth budget, said that India is expected to grow at 9.27 percent in the current financial year. Here’s a sneak peek into the post-budget reactions of industry experts.
February 1, 2022
Substantial Focus on Housing and Infrastructure Development
The 2022 budget has a remarkable approach towards growth orientation. With a substantial focus on housing and infrastructure development, it provides a promising outlook that will provide a much-needed boost to the economy. The provision of chemical-free agriculture is a good move towards health improvement and it will also help in increasing exports. The #PMGatiShakti master plan will definitely aid in reducing logistics costs in the long term. The support for urban capacity is going to improve efficiency and will also provide some relief in reducing the cost of real estate which is the need of the hour in order to afford a good living.
Overall Economic Development and an Improvement in Standard of Living
The Budget 2022 has a strong futuristic approach with a considerable focus on education, sustainability, agricultural growth and women empowerment. It promotes overall economic development including the non-metro cities as well and an overall improvement in the standard of living. The affordable housing scheme is a huge step by the government that will impact the lives of 80 lakh families aspiring them to have their own houses in the future. This will boost economic growth and will improve the overall living standards of the people. The support for urban capacity building will open up new possibilities for the citizens in non-metros thereby encouraging people to settle in these cities with a better quality of life. The expansion of the National Highway network will help smoothen transportation and reduce the logistic costs thereby also providing opportunities for growth to the smaller towns nearby. The Green Energy & Clean Mobility provision will certainly promote better health, ease of living and reduce mobility cost.
A 35 Percent Higher Outlay of CAPEX to Provide a Fillip to Infrastructure Activities
The Budget has hit the right chords in terms of focus on inclusive growth, Amrit Kaal of structural development and achieving our long-term vision of Atma Nirbhar Bharat. A 35 percent higher outlay of CAPEX is a welcome move and should provide a fillip to infrastructure activities. Urban planning and development should be a pressing priority if we wish to unlock the true potential of India and I am glad the government is aptly addressing it. Overall, leveraging technology, nurturing innovation, placing a strong emphasis on Green Energy and promoting Clean Mobility systems is clearly a progressive stride towards sustainable development.
Faster Implementation of Metro Rail, Infrastructure Status for Data Centres, and Emphasis on PM Gati Shakti
I welcome the forward-looking, capex-led Budget 2022, with a sharp 35 percent increase in outlay. A strong focus on improving the safety of Indian Railways, faster implementation of metro rail systems, infrastructure status for data centres, along with emphasis on PM GatiShakti with significant allocation towards Jal Jeevan Mission, Affordable Housing, BharatNet and building 100 Cargo Terminals for multimodal logistics facilities augur well for KEC International Ltd. and our well-diversified businesses.
Further, initiatives such as the use of Surety Bonds as a substitute for bank guarantee, a cap on Surcharge of AOPs/consortiums at 15 percent as against 37 percent earlier and an end-to-end online e-Bill System to enhance transparency are steps in the right direction for EPC contractors such as KEC.
Standardising Domestic Manufacturing of Electronic Smart Meters, and Wearable Devices a Boon
It is a growth-oriented and forward-looking Budget. The ambitious goal of 280 GW of installed solar capacity by 2030 has been set with an additional allocation of INR 19,500 crores for manufacturing solar PV modules, in the power and energy sector I believe the Union Budget 2022 will increase the growth and will help in ramping up domestic capacity. This is a highly sustainable and green energy choice. The government’s concern towards standardising the domestic manufacturing of electronic smart meters, wearable devices and hearable devices is a boon for India to become an electrical manufacturing hub. The proposal of surety bonds as a substitute for bank guarantee is highly welcomed.
Furthermore, INR 48,000 crores are allocated for 80 lakh houses to be completed both in rural and urban areas which is a huge step towards the upliftment of the society.
Boosting Electronic Manufacturing and Easing of Policies
We welcome the measures announced by the Honourable Finance Minister Nirmala Sitharaman and the Government of India in the Union Budget towards boosting electronic manufacturing in the country. The Union Budget 2022 has announced the easing of policies and has pledged to allocate INR. 19,500 crore for PLI for manufacturing of high-efficiency modules. PLI in 14 sectors will help in generating 60 lakh new jobs and additional production of Rs 30 lakh crore in the next five years which is laudable.
Today, India’s manufacturing industry has incredible potential to place the country on the global manufacturing map, concurrently boosting several employment opportunities for India’s youth. Further to this, the Finance Minister also announced duty concession for electronic items, this will in return further boost the sector, and enable domestic manufacturing of high growth electronic items. The budget features a vigorous, expansionary attitude toward the manufacturing industry, as seen by the government’s incentives and enhancement of the PLI schemes. As a brand, Goldmedal Electricals has always been at the forefront of introducing ground-breaking and sustainable solutions that make our planet not only smarter but also sustainable for generations to come and support the government’s vision of Atmanirbhar Bharat.
