An adroit exercise in balancing a targeted thrust on key economic drivers, while bringing focus on fiscal consolidation. India’s growth potential needs a stable investment environment, while facilitating domestic consumption, and the Budget has put in place key enablers.
The first notable aspect was the determined attempt to control the fiscal deficit. The Budget has a calibrated roadmap. Reinforcing this was the provision of subsidies through cash, bringing these “above the line”, thereby increasing transparency.
The key thrust areas were infrastructure and rural development, two sectors that will drive sustainable growth. While the increased outlays are required, meeting the ambitious investment targets for infrastructure capex requires innovation. Rural development is key not just for inclusive growth, but also to increase agri-productivity and develop a large domestic market.
The financial sector has been a critical enabler of growth and the importance given to it is a testament to the seriousness the government accords flows of funds to key sectors.
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