Budget positions India towards its target of $5 trillion economy: USISPF

Applauding the annual budgetary presentation by Finance Minister Nirmala Sitharaman, the US-India Strategic and Partnership Forum (USISPF) described it on Monday as bold and visionary, which would launch India's economy into a growth trajectory.

"We applaud India's budget. It is bold and visionary, launching the economy into a growth trajectory. The budget positions India towards its target of a USD 5 trillion economy," USISPF president Mukesh Aghi said.

The Union Budget 2021-22 has taken into consideration the needs of all sectors of the economy, reflecting a robust growth plan for India to become a USD 5 trillion economy, he added.

Increased government spending in critical areas of the economy such as agriculture, infrastructure, healthcare, education and defence was much needed, Aghi said.

"We believe that these measures along with an ambitious plan for the divestment of public sector undertakings, further opening of sectors like insurance and establishing an institutional framework for the corporate bond market will provide much-needed capital to the economy," he said.

"The Indian government's commitment to growth is also reflected in the milestones and timelines that it has set forth," Aghi said, adding that the USISPF is confident that the global investment community will embrace the expansion of India's economy over the next 12-24 months.

The new Development Finance Institution will facilitate foreign investment in infrastructure, while the consolidation of the Securities Market Code will make the investment climate more welcoming to foreign capital, he said.

"Multiple measures to simplify India's tax code and dispute resolution are concrete steps to bring further predictability in the country's tax environment and improving its business environment," Aghi said.