Budget 2022: Continuing in the right direction, says Shree Cement's Bangur

Budget 2022 has continued the good work of last year and is another step in the right direction to create a growing and sustainable economy. India is expected to record a growth rate of 9.2 per cent in 2021-22 and is further projected to record an 8–8.5 per cent growth rate in 2022-23. This reflects the structural growth transformation and resilience of the Indian economy.

The Budget has met multiple objectives through well-thought-out initiatives aimed at facilitating inclusive development, better productivity, upgrading health and defence capabilities, fueling consumption and providing economic buoyancy at a time when the economy is grappling with adverse effects of the pandemic. The Budget reinforces the view that continuing with a high budget deficit, 6.4 per cent in FY22-23, is the need of the hour. This coupled with consistently rising tax revenues from GST and direct taxes will provide much needed room for meeting higher spending requirement in the targeted sectors in order to boost capital formation and have a sustained economic recovery. Allocation of Rs 10.7 trillion (4.1 per cent of GDP) towards capital expenditure is sure to give wings to infrastructure development in the country alongside extra focus under the PM Gati Shakti – National Master Plan.

Prashant Bangur, Joint MD & director, Shree Cement

Extension of period for setting up new manufacturing units for availing of concessional tax is a welcome step to boost local manufacturing and contribute to “Make in India”.  Design-led manufacturing to build a strong ecosystem for 5G as part of the PLI scheme, renewed thrust on encouragement to MSMEs, focus on energy transition and climate action, focus on local manufacturing for defence requirements are reflective of the long-term growth vision for the economy. Reviewing existing compliance framework to further smoothen ‘ease of doing business’ and measures such as “One Nation, One Registration’ will surely help ease the compliance burden.

It is reassuring to see government focus on growth-propelling sectors such as healthcare and infrastructure. Prioritised spending towards high-capital-intensive sectors such as building 25,000 kms of roads as well as the target of completing 8 million dwelling units under the PM Awas Yojana is a step in the right direction to create catalysts for a growing and sustainable economy. The Budget will boost consumer confidence and demand. While we are still not completely out of the woods on the pandemic front, the industry now has the opportunity to harness the potential of India’s growth story that this Budget unlocks.

I appreciate this Budget as path-defining one and believe that it has given a shot in the arm to the “India growth story”.