The Budget is highly pragmatic and growth oriented: PVR's Ajay Bijli

Ajay Bijli, Chairman and Managing Director, PVR Ltd, talks about Union Budget 2023

Will this Budget help the economy and allow India to stay ahead of global challenges?

I expect that the measures announced in the Budget will have a multiplier effect on growth and employment. Some specific measures:

• Increasing capital investment by 33.4 per cent to 10 lakh crore and
• focus on creating urban infrastructure in Tier 2 and Tier 3 cities through a dedicated Urban Infrastructure Development Fund (UIDF)

While the rest of the world is facing economic uncertainty on account of high inflation, rising interest rates etc, which could lead to recession in some big economies, our economy is backed by strong macros – declining fiscal deficit from 9.2 per cent in FY21 to the Budget target of 5.9 per cent in FY24; robust tax and GST revenues; sufficient forex reserves (close to $600 billion); 4x increase in government capex from 2016 to 2024 under the Budget.

In conclusion, the Union Budget is expected to have a significantly positive impact on the economy by providing a much-needed boost to overall growth and employment. With the right implementation, the Budget can play a key role in driving the country towards a brighter future.

What is the best thing about the Budget?

The Budget is highly pragmatic and growth oriented. The best thing I think is that the Budget reflects the government's commitment to inclusive development (sabka saath, sabka vikas) across sectors and job creation, increasing consumption through tax benefits to the middle class; and impetus to industry to spur investments for domestic manufacturing and infrastructure development.

Does the Budget make India a better investment destination?

Yes, the Budget has strong potential to positively impact the investment climate in India and make it a more attractive destination for investors.

The Budget is well-structured with a clear target of bringing fiscal deficit to below 4.5 per cent by 2025-26. This, along with the government’s commitment to making 10 lakh crore investments in infrastructure development, will play a significant role in making India a better investment destination.

Additionally, I believe adequate allocation of resources towards key sectors/ministries such as roads (2.7 lakh crore), Railways (2.4 lakh crore), consumer affairs (2 lakh crore) etc. can have a positive impact on the investment climate.

The government’s focus on developing trust-based governance (leverage AI and digital, faster settlement of contractual disputes etc.) will add to overall investor confidence.

Further, initiatives to improve the ease of doing business such as simplification in indirect taxes, tax benefits for industry and specifically to MSMEs can boost investor confidence and increase foreign investment in the country.