“The reduction in FY25 fiscal deficit target from 5.1% to 4.9% is macro-positive. The capex outlay kept unchanged as ₹11.1 lakh crore, shows the government’s unwavering focus on investments to drive the economy forward.”
The first full budget of the new Government was a balanced one with the Government delicately balancing the needs of the economy through its focus on the nine priority areas of agriculture, employment, inclusive development, manufacturing and services, urban development, energy, infrastructure, innovation and R&D, and next generation reforms.
The reduction in FY25 fiscal deficit target from 5.1% to 4.9% is macro-positive. The capex outlay kept unchanged as ₹11.1 lakh crore, shows the government’s unwavering focus on investments to drive the economy forward.
With a provision of ₹1.48 lakh crore, employment and employability have been given a major fillip which indeed is the need of the hour. A new scheme offering internship opportunities at 500 top companies for one crore students over the next five years will go a long way in boosting employability.
The Government’s intention to partner with the private sector to develop small modular reactors is a good step emphasizing the importance of nuclear energy in India’s energy mix. Moreover, the ₹1000 crore venture capital fund to promote space technology is a welcome step in encouraging greater participation of the private sector in India’s burgeoning space sector, where we have the potential of being the global leader for satellite launches.
The Budget has managed to pave the way towards an inclusive economic growth, through measures that will encourage greater private sector participation while maintaining the fiscal glide path to 4.5% fiscal deficit in FY26.
A slew of measures aimed at MSMEs is likely to ease the pressure on this crucial sector of the economy contributing 30% to India’s GDP.
The increase in standard deduction from ₹50,000 to ₹75,000 and favourable change in the tax slabs under new regime will increase disposable income in the hands of consumers which is likely to boost consumption. This will provide the necessary impetus towards larger private investments in capacity building.
The Godrej Enterprises Group looks forward in contributing towards the vision of Viksit Bharat 2047.
By Anil G. Verma, Executive Director & CEO, Godrej & Boyce Mfg. Co. Ltd. (the flagship company of the Godrej Group)
