iNDICA NEWS BUREAU-
The President of the U.S.-India Business Council (USIBC), Atul Keshap, congratulated India’s Finance Minister Nirmala Sitharaman and the Government of India on its “confident, pro-growth” Union Budget 2024-25.
“With elections due this spring, this is, in effect, a mini-budget, with another set of announcements likely to come in July once a new government is in place. The budget contains several notable programs and milestones that build on the momentum from prior years. India’s focus and execution on budget consolidation, including beating its fiscal deficit target for this past year, is important to maintaining and enhancing its credibility with foreign investors. This is likely to have a net positive impact on the ultimate allocation that Indian sovereign bonds receive as they are incorporated into benchmark international indices in 2024, which, in turn, would deepen the country’s capital markets and reduce public financing costs,” said Keshap.
Keshap is a retired senior Foreign Service Officer who served as Charge d’Affaires at the United States Embassy in New Delhi, leading the U.S. Mission’s engagement with the government and people of India. Before that, he served as the Principal Deputy Assistant Secretary of State for the Bureau of East Asian and Pacific Affairs, with policy responsibility for U.S. relations with eleven countries in Southeast Asia, and helped lead the bureau’s domestic and overseas response to the Covid-19 pandemic.
Established in 1975 at the behest of the U.S. and Indian Governments, the USIBC represents hundreds of top global companies operating across the United States, India, and the Indo-Pacific. Amid dynamic growth within the U.S.-India commercial partnership, the organization serves as the premier voice of the industry and creates connections between businesses and governments across both countries.
“There was a strategic focus on technology, green growth, and infrastructure, as well as a commitment to public health and macro-economic stability. Combined, these are likely to contribute to India’s prosperity through sustainable growth, increased productivity, reduced logistics costs, and enhanced personal well-being. They also complement the major bilateral initiatives that are likely to drive cooperation between India and the United States this year, such as the Initiative on Critical and Emerging Technologies (iCET) and the Innovation Handshake,” Keshap said.
Speaking about technology, Keshap commended the government’s continued commitment to developing India’s semiconductor ecosystem and accelerating its ‘deep tech’ sector through additional financial support and public-private partnerships. “Both of these position India to make an even stronger contribution to iCET. The deep tech capital guidance fund is likely to have its greatest impact if it creates attractive avenues for foreign investors to contribute capital and expertise. We also look forward to learning more details about the significant commitment of $12 billion to long-term low or no interest financing for so-called ‘sunrise sectors,’ which has significant potential to enhance innovation.”
“Sustainable growth is critical to ensuring that India’s economic expansion supports individual wellbeing. We laud the vision of bringing clean energy generation and use to peoples’ doorsteps through rooftop solar power for 10 million households as well as viability gap funding for one gigawatt of wind energy. The emphasis on promoting green manufacturing of alternative materials through biomanufacturing and biofoundries is also a step in the right direction. These demand signals can help promote India’s leadership of the green economy and integration into its global value chains,” the retired senior Foreign Service Officer added.
“These initiatives, along with the 11 percent increase in capital expenditure are all examples of government outlays aimed at increasing job creation and productivity, especially to the extent the capex enhances transportation infrastructure and multi-modal connectivity. Universal vaccination to prevent cervical cancer is a critical step in ensuring a healthy workforce and equitable society.”
