A progressive step towards India’s development, Union Budget 2022 seeks to complement macro-economic growth with a focus on micro-economic and all-inclusive welfare. With a pro-technology focus and futuristic vision, the Budget gives a special thrust on the promotion of Digital India and the adoption of emerging technologies, including 5G, AI, ML, and drones.
The key highlights of Union Budget 2022 underline the economic growth estimated at 9.2 percent – the highest among all large economies. It promises 60 lakh new jobs to be created under the Production Linked Incentive (PLI) scheme in 14 sectors. It also highlights that the schemes have the potential to create an additional production of Rs 30 lakh crore.
All these initiatives are expected to collectively generate employment and boost output in the medium to long term through multiplier effects.
Aligned with vision of ‘Make-in-India’ and ‘Atmanirbhar Bharat’
This Budget has a roadmap for achieving the objective of ‘Make-in-India’ and ‘Atmanirbhar Bharat’. The customs duty rationalisation to incentivise domestic manufacturing is a welcome step. The government has provided a booster dose to the Indian economy with a capex intensive budget that supports the vision of Atmanirbhar Bharat.
The government has kept its promise of giving a booster dose to the Indian economy by introducing a Budget that supports its vision of ‘Atmanirbhar Bharat’ as well as incentivises ‘Make in India’ products.
Big boost to infrastructure development
The Budget also highlights the PM Gatishakti Scheme with ambitious plans to transform the transportation sector. The seven engines that are going to drive PM GatiShakti are roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure. The Budget’s booster dose to infrastructure will help secure industry growth in the long term.
Extended liquidity support to MSMEs
There is a greater focus on the MSME sector in the Budget, and as a key stakeholder of the MSME ecosystem, we feel this is a very positive step for the security industry.
The government has announced that Udyam, e-shram, NCS, and ASEEM portals will be interlinked. The help is provided to 130 lakh MSMEs as additional credit under the Emergency Credit Linked Guarantee Scheme (ECLGS). The extension of this scheme till March 2023 is a thoughtful decision.
The firm focus on skill development is another positive aspect of the Union Budget. Digital ecosystem for skilling and livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through online training.
Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).
‘Make-in-India’ push
The government’s intent about the Phased Manufacturing Programme (PMP) needs to be appreciated by the electronic manufacturing industry. This programme has also rationalised the inverted duty structure, which was impeding the development of manufacturing in the sector.
The PMP should be immediately followed up with a robust PLI programme to make India a global powerhouse in electronic manufacturing.
The ‘Make-in-India’ push provided in the budget is an interesting opportunity for the company that manufactures electronic security products. There is big scope potential to increase the production output to meet the growing demand for electronic security products across myriad categories in the country.
Besides the production capabilities, the ‘Make-in-India’ roadmap will be able to provide better and more products that can be manufactured in India. We hope that the momentum that the budget has started continues and delivers on its promises.
Capex push boosts growth prospects
The government has announced a 35 percent uptick in capital expenditure outlay of Rs 7.5 trillion. This initiative, along with a Re 1 trillion support extended to states for capex commitments, is expected to give a strong push for economic growth.
The increased spending will see better revenue growth for companies in the long term, especially those in the private sector, related to infrastructure development.
Ease of Doing Business 2.0
The government says it has scrapped over 25,000 compliances and repealed over 1,486 laws in the past few years, the government is moving towards ‘Ease of Doing Business 2.0’. This phase will involve digitisation of processes and interventions, integrations of central and state–level systems via IT bridges, and standardisations. The Budget promises various measures, which will lead to the removal of overlapping compliances.
Way forward
The Budget shows bold intent to draw a blueprint to steer the economy over 25 years. It continues to build on the vision of ‘Make-in-India’ and ‘Atmanirbhar Bharat’. The Finance minister has opted for high capex to fuel fast growth to resolve a myriad of economic challenges.
The Budget has a clearly laid out strategy for India’s recovery path with Atmanirbhar Bharat plan. This progressive Budget has created a well-thought roadmap for the people, enterprises, and economy.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YS.)
