Surprise reduction in fiscal deficit will attract investment chunks, says Sanjeev Agrawal.

NEW DELHI, Feb 1, 2024: The Union budget 2024-25  is a reflection of Viksit Bharat by 2047, said the industry body PHD Chamber of Commerce and Industry (PHDCCI).

Congratulating Union Finance Minister Nirmala Sitharaman for presenting reforms oriented and investments inducing Interim Budget,  PHDCCI president Sanjeev Agrawal said it is encouraging that the FY25 fiscal deficit is projected at 5.1% of GDP.

This will provide a great boost to the Indian economy. The nation will continue on the path of fiscal consolidation to reduce the fiscal deficit to 4.5% in 2025-26, he said.

The improved fiscal deficit will attract the attention of foreign investors and attract large volumes of foreign direct investment, Agrawal said.

The government’s focus on empowerment of Gareeb, Youth, Annadata and Women will give a new shape to the socio-economic development of the country and make growth more inclusive in the coming times, he said.

The continued CAPEX push with an increase of 11.1% to the level of Rs 11.11 lakh crore will further support aggregate demand in the country and create jobs, he said and observed that it is inspiring to note that two crore more houses will be built under the Pradhan Mantri Awas Yojana – Gramin and one crore households will receive up to 300 units of rooftop solar powered electricity every month, said Mr Sanjeev.

A great motivation to the manufacturing sector will come from the GST regime, boosting the tax-based growth and the extension of tax benefits for start-ups to March 31, 2025, said Agrawal.

The recently announced India Middle East Europe Economic Corridor will be a game changer for India. 3 major railway corridors announced- Port connectivity corridor, energy, mineral and cement corridor and High traffic density corridor. This will boost overall economic activity and generate more jobs leading on a higher growth path, he said.

Catalyzing Research and Innovation for further growth, employment and development is highly motivating. For the tech-savvy youth, a corpus of Rs 1 lakh crore will be established with a 50-year interest-free loan. This will increase the innovation in the country and enhance competitiveness of the enterprises, said Mr Agrawal.

PM ScHools for Rising India (PM SHRI) are delivering quality teaching, and nurturing holistic and well-rounded individuals. We appreciate that the Skill India Mission has trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, and established 3000 new ITIs and 34 crore Mudra Yojana loans have been given to women entrepreneurs, he said.

Healthcare cover under Ayushman Bharat scheme will be extended to all ASHA workers, Anganwadi Workers and Helpers.  The newly designed U-WIN platform for managing immunization and intensified efforts of Mission Indradhanush will be rolled out expeditiously throughout the country, said Mr Sanjeev Agrawal.

For promoting climate resilient activities for blue economy 2.0, a scheme for restoration and adaptation measures, and coastal aquaculture and mariculture with integrated and multi-sectoral approach will be launched. This will propel India on the path to a sustainable green economy, said Mr Sanjeev Agrawal.

Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship, said Agrawal.

The budget lays down the foundation of the profound positive transformation of India’s Economy. The government has assisted 25 crore people to get freedom from multidimensional poverty in the last 10 years, with the pursuit of Sabka Saath, Sabka Vikas and Sabka Vishwas, he said .