Speaking on the Union Budget for FY 2022-23, Mr. Dinesh Aggarwal, Joint Managing Director, Panasonic Life Solutions India Pvt. Ltd., “As announced by the Finance Minister, this Union Budget will be the foundation and blueprint of the economy for ‘Amrit Kaal’, the next 25 years – from India at 75 to 100.”
The Union Budget 2022-23 has focused on our nation’s growth with major policy announcements in the energy, connectivity, capacity building of the economy, infrastructure investment, and enhancement of the digital economy that will further contribute to the revival of the economy and ensure improved growth.
As announced by the Finance Minister, this Union Budget will be the foundation and blueprint of the economy for ‘Amrit Kaal’, the next 25 years – from India at 75 to 100. With a major focus on R&D for sunrise sectors, sustainable solutions, and technological advancements in this Budget, we are looking forward to a growth-driven economy in the future years as well.
As India’s economic growth is estimated to be 9.2 percent in the upcoming financial year, we can expect a push towards more investments and a renewed focus on Atmanirbhar Bharat. The focus on infrastructure is very evident with an increase in CAPEX by 35 percent. This will eventually lead to a large generation of employment.
The renewable energy sector has seen a boost with the aim for domestic manufacturing of 280 gigawatts of installed solar capacity by 2030. This is also in line with India’s sustainability goals that we are fast meeting. There is also an additional allocation of INR 19,500 crore for the PLI (Production Linked Incentive) Scheme for the manufacturing of high-efficiency modules, with a priority to fully integrate manufacturing units to solar PV modules. This will further align with the objectives of Atmanirbhar Bharat.
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In this Budget, encouraging the localisation of electronic components to increase independence in manufacturing was expected which in turn would have lowered the cost of electric vehicles and charging infrastructure. Incentivisation of large-scale energy storage to meet the energy-supply gap and to reduce grid load and fluctuations were expected. Further, a fiscal incentive for energy saving in commercial and industrial sectors especially, using various available products and technology was missing from the Budget. Smart metering infrastructure was mentioned by the FM but a detailed policy can lead to a resolution of the major problem of power leakage, with a clear timeline to achieve 100 percent conversion from present electromechanical meters to smart meters.
The PLI Scheme is further expected to create 60 lakh new jobs and additional production of 30 lakh crore during the next five years and this will definitely help in building more confidence in the economy.
Also Read: UNION BUDGET 2022-23
Budget 2022-23 is strong and has policies focusing on accelerating the economy with innovation, sustainability, and enhancement of the digital economy. With an amplified focus on energy, connectivity, and infrastructure investments, we are surely looking at larger investment and positive growth in FY 2022-23.
