New Delhi, Feb 3 The focus on public-private partnerships (PPP) in infrastructure, along with 50-year interest-free loans for state projects, is expected to create a multiplier effect not only boosting India's GDP but also strengthening the states’ economy, leading industry chamber PHDCCI's President Hemant Jain said on Monday.
India is rapidly positioning itself as a global economic powerhouse, with ongoing reforms and initiatives attracting investments and fostering innovation.
With a historic high of Rs 50.65 lakh crore, the Union Budget prioritises agriculture, the middle class, manufacturing, MSMEs, women empowerment and job creation.
PHDCCI projects that the Budget’s strategic focus will contribute over 1 per cent (100 bps) to India’s GDP growth in 2025-26, creating lakhs of new employment opportunities in the country
"The increased budget allocation is set to foster substantial growth across various sectors. A significant reform in income tax, including the exemption for incomes up to Rs 12 lakh and a 30 per cent tax rate on incomes above Rs 24 lakh, will stimulate consumption demand and expand industrial production," Jain said.
The rise in disposable incomes will drive consumer spending, subsequently encouraging businesses to scale operations, increase investments, and expand production.
The Dhan Dhanya Krishi Yojna, benefiting 1.7 crore farmers in 100 districts, will significantly boost rural development, agricultural productivity, and farm incomes.
"Moreover, the mission for self-reliance in pulses is set to reduce food inflation and curb dependence on imports, while a dedicated Makhana Board in Bihar will enhance processing and value addition, further benefiting farmers," according to Jain.
Enhanced focus on MSMEs will generate employment, accelerate economic growth, and strengthen India’s journey towards Viksit Bharat, he mentioned.
According to Finance Minister Nirmala Sitharaman, the government's focus has been on capital expenditure (capex) in the last few years, and now it has also given a huge boost to increasing consumption. The government spending on capex is projected to be 4.3 per cent of GDP this year, with an expected fiscal deficit of 4.4 per cent in the coming year.
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