Union Budget 2022 ensured the arrest of the ongoing recovery glide path by considering the complexity of evolving circumstances, keeping fiscal consolidation gentle, and investment-led economic growth for India’s better future. It spelled an indicative vision document to steer economic growth over the Amrit Kaal for India @100.
The Budget highlights is clearly about complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition, bolstering investment, and climate action — which augurs well for the nation.
As the Budget decodes ‘Kaam, Kisan and Kamai’ as the focus, the outlays have come out with a ‘budget for the economy’, with sustainability and infrastructure investment as its underlying theme.
The Finance Minister has envisioned a modern state with futuristic megacities and hinterlands to serve as new centres of economic growth, with tier-two and tier-three cities taking the mantle in the future. The government wants to re-imagine the entire thought process for a new urban India, and the industry will eagerly contribute towards collaborative development to fulfil the urbanisation vision.
The government’s decision to appoint a high-level committee of urban planners, urban economists, and institutions to make recommendations on urban sector policies, capacity building, planning, implementation, and governance should be able to provide a blueprint for future urban growth. We really need to shed the business-as-usual approach to achieve that.
Ease of Doing Business has been the mantra for this government from the very beginning. Therefore, the industry welcomes a much-awaited focus to resolve long-standing issues of reduction in approval timelines for land and construction. A single-window portal for green clearances will augment sustainable development along with special mobility zones for electric vehicles. The decision to work with the financial sector regulators to expand access to capital along with a reduction in the cost of intermediaries is what the industry needed in this time of crisis that arose due to the Covid-19 pandemic.
The emphasis laid on modernisation and reforms in building byelaws, TDR reforms, urban town planning schemes, transit-oriented multimodal corridors, and transferable development rights are the nuances that are certainly lauded by the industry stakeholders.
The impetus given to the urban development policy with the enhanced capacity building will lead towards holistic development of the urban landscape. The big boost for real estate infrastructure with a cascading impact on additional job creation will originate from this decision.
The additional allocation of Rs 48,000 crore towards the Prime Minister Awaas Yojana (PMAY) will further enhance affordable housing benefits to 8 million new beneficiaries under middle-class and economically-weaker sections in urban areas.
Data is the new oil, and the government has proactively acted on capitalising the Digital India trend. Granting of infrastructure status to data centres in lieu of impetus to data localisation, and protect data sovereignty is a shot in the arm for India’s future as a data and technology hub. The announcement will enable the data-centre industry to avail of long and affordable credit financing to foster competitiveness to become a global player.
The PM Gati Shakti Master Plan for expressways to be formulated in 2022-23, to facilitate faster movement of people and goods, and expansion of the national highway network to 25,000 km in 2022-23 with additional impetus on inclusive development for last-mile connectivity, public investment, capital spending, and financing of investments, will enhance the overall health of the sector.
Moreover, replacing the Special Economic Zone Act with new legislation enabling states to become partners will cover all large industrial enclaves boosting the sector further.
I, on behalf of the industry, would like to congratulate the Finance Minister and the government for their vision and steadfastness. No doubt, India@ 100 will be a country that will shine in the global arena.
Niranjan Hiranandani is National Vice Chairman-NAREDCO, and MD, Hiranandani Group. Views are personal, and do not represent the stand of this publication.
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