The Budget should prioritise measures that spur economic growth within the next three to six months, Bharat Forge joint managing director Amit Kalyani has said.
Speaking to Moneycontrol at the World Economic Forum in Davos on January 21, Kalyani pointed out that benefits of government schemes such as the production linked incentives (PLIs) for batteries and semiconductors are likely to materialise over a decade but the Budget needs push for immediate growth.
"The budget has to create something that drives the economy in the short term," he said. "We need measures that spur the economy in three to six months, not 10 years from now."
The comments come as Modi 3.0 gears up to present the budget for the financial year2025-26 on February 1.
The government has set an ambitious target of reducing the fiscal deficit to below 4.5 percent of GDP by FY26, necessitating prudent fiscal management without stifling growth momentum.
Several auto component makers believe that there will be a slew of announcements and incentives for the manufacturing sector including PLI benefits and customs duty reduction on key raw materials.
Speaking on the challenges facing India’s growth trajectory, Kalyani said capital formation is insufficient to meet the ambitious target of 7-8 percent growth.
“The immediate requirement is for initiatives that put capital expenditure directly on the ground within India,” Kalyani said, urging the government to focus on policies that will encourage domestic investment and production in the short term.
Also Read: Davos 2025: Bharat Forge to enter 'niche' semiconductor component business
Kalyani also said Bharat Forge is gearing up to enter the semiconductor industry, with focus on niche markets spanning sectors from consumer and automotive to industrial and high-end defence.
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