Union Finance Minister Nirmala Sitharaman.
Credit: PTI Photo
Washington: Observing the future ready budget presented by Union Finance Minister Nirmala Sitharaman aims to realise the vision of 'Viksit Bharat' by raising spending to generate more jobs and spur economic growth, USA India Chamber of Commerce on Tuesday said it sets the economy on a long-term growth path through upskilling and easing unemployment.
“This bold, future-ready budget aims to realise the vision of Viksit Bharat by raising spending to generate more jobs and spur economic growth. The finance minister has maintained fiscal discipline, with a commendable reduction in the fiscal deficit target to 4.9 per cent of GDP for FY25, down from the 5.1 per cent target in the interim budget. Fiscal discipline is crucial for sustainable economic growth and maintaining investor confidence,” Karun Rishi, president of USA India Chamber of Commerce, told PTI.
The budget focuses on micro, small, and medium enterprises (MSMEs) to drive growth through job creation. For a country like India with a large population. MSMEs can be an engine of growth. This approach is expected to enhance the contribution of MSMEs to the economy and employment generation, he said.
According to Rishi, the budget sets the economy on a long-term growth path through upskilling and easing unemployment. Skilled and employable manpower is essential for industrialization, and the government aims to leverage the power of both the private and public sectors to achieve this, he said.
“The abolition of the angel tax is a landmark decision for the start-up ecosystem in India. This was a much-needed course correction. This bold step will foster a more vibrant start-up ecosystem in India, leading to increased innovation, employment generation and competitiveness,” he said in response to a question.
Rishi said the government signaled policy continuity and focus on the infrastructure sector by continuing to allocate 3.4 per cent of GDP. The spending plan was unchanged from the interim budget presented in February before the national elections. The government has doubled spending on infrastructure over the past three years as a way to boost the economy.
As a percentage of GDP, capital expenditure has risen from 1.7 per cent in 2019-20 to 3.4 per cent in the current year. This investment is expected to generate demand across various sectors and create much needed jobs, providing a strong multiplier effect on the economy, he noted.
“Announcement of the Annusandhan National Research Fund shows India’s continued steadfast commitment towards supporting innovation. Its aim to support basic research and prototype development will positively impact innovation. There is a distinct opportunity for India to become a leading partner in the global BioPharma innovation. USAIC strongly encourages the Indian government for significant allocation and prioritization for BioPharma research and development,” Rishi said.
“Proposal to fully exempt Trastuzumab Deruxtecan, Osimertinib and Durvalumab from custom duties is indeed a positive development, especially for patients in need of these critical treatments. We encourage the government to extend this to other lifesaving imported drugs to help patients. This would further enhance accessibility and affordability,” he said.
The Union Health Ministry has been allocated Rs 90,658.63 crore in the interim Budget for 2024-2025. The ministry has witnessed a hike of 12.59 per cent over 80,517.62 crore in the Budget (revised estimates) for 2023-2024. Investing more in healthcare is crucial for building a healthier population, which in turn supports economic growth and social stability. Aligning healthcare spending with that of developed nations can accelerate progress towards achieving a Viksit Bharat, as robust healthcare systems are foundational to national development and prosperity, he said.
“The budget's balanced approach of maintaining fiscal discipline while making strategic investments in critical areas is aimed at setting Bharat on a path of sustained and inclusive growth. By focusing on MSMEs, infrastructure, innovation, and healthcare, the Indian government is paving the way for a stronger and more prosperous India,” Rishi said.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.