Following the Union Budget 2022-23 address, the US-India Strategic Partnership Forum (USISPF) lauded Finance Minister Nirmala Sitharaman and the Government of India for presenting the budget that addresses short-term relief in the era of the pandemic and focused on medium to long term growth.
The USISPF on Tuesday, Feb 1, said that the Centre delivered a Union Budget which “allows the government to continue supporting development while keeping an eye on the fiscal deficit.”
Calling it a measured and pragmatic budget, the forum further supported the Centre’s approach to “investment in the critical infrastructure” which would help businesses expand and create more jobs in the country.
Speaking about the Union Budget 2022-23 presented by the finance minister on Tuesday, USISPF President and CEO, Mukesh Aghi told indica, the budget addresses short-term relief in the era of the pandemic and focused on medium to long term growth.
“We are pleased to see the 35 percent increase in the capital expenditure budget, which will support the investment in the critical infrastructure needed for business to expand and create jobs, and the investments in public health and welfare,” Aghi said. “We welcome the support for manufacturing through the PLI schemes, credit for medium and small enterprises, and investments in solar technology and other green infrastructure, digital finance.”
“This budget charts a credible path forward for the economy, to help India in its quest to becoming a $5 trillion economy,” Aghi stated.
Asked the budget 2022-23 is investor-friendly, mainly when we talk about foreign funding and investment in India, boost Make in India initiative, Aghi said, “The budget is certainly targeted at boosting investment in the economy to drive growth.”
The significant increase in capital expenditures, renewed commitment to divestment and asset monetization, and extension of PLI schemes and credit support for MSMEs are all investment-friendly. As for investor-friendly, there is a welcome proposal to ease the business climate by reducing, streamlining, and digitizing regulatory requirements.
“On balance I’d say it’s a framework that is friendly to investment from all sources, with the caveat that the devil will be in the details of the actual policies to come,” Aghi said.