Budget 2022 : A Long Term Vision Document : Dr. Niranjan Hiranandani

1 Feb 2022 , 09:36 PM

Budget 2022 sketches a blueprint for future growth with no complex regulation, no additional tax burden, no excessive populism but a crisp focus on investment infrastructure,& digitization as new growth pillars.

 

With Kaam, Kisan, and Kamai as the focus, the Hon’ble Finance Minister has come out with a ‘budget for the economy’, with sustainability as its underlying theme. It is clearly about complementing macro-growth with micro-all-inclusive welfare.  The transformative PM Gati Shakti scheme will be driven by seven engines to facilitate seamless and last-mile connectivity.  The collaborative synergy between central and state Governments along with privatization impetus will witness a multiplier effect on additional job creation and foster entrepreneurial spirits. The National Master Plan will encompass economic growth disruption and improve logistic efficiency to augment the Make in India objective.

 

The Real Estate industry lauds the allocation of Rs. 48,000 crores for the Pradhan Mantri Awaas Yojana (Rural and Urban) benefitting 80 lacs home buyers in urban areas. The growth-oriented budget has laid enough emphasis on ease of doing business and single-window clearances via introducing ‘One Nation, One Registration’ reform. This will bring in much-needed transparency, accessibility, time-saving, and digitization of land records. With intent to boost sustainability, the Government has nudged single-window reform for green clearances to promote favorable climate growth.

 

Realizing the significance of economic growth driven by urbanization, setting up a high-level expert committee for urban capacity building for modernization, effective town planning, mass transit-oriented will be leveraged to formulate futuristic living. Equal importance is being laid on strengthening synergies between central and state governments to reduce the time for land and construction-related approvals. This will promote affordable housing for the middle class and economically weaker sections in urban areas.

 

Towards strategic execution, expansion of access to capital by the financial regulators, reduction in cost by eliminating intermediaries, and essential amendments in the IBC code will be carried out for improving efficacy in the resolution process.

 

 

Urbanization is critically important for India to achieve its maximum economic potential and offer livelihood opportunities for its demographic dividend. In order to achieve that, nurturing new megacities will be pivotal to re-imagine our cities and develop a new economic harbinger. The establishment of a high-level committee of urban development expertise will drive modernization of buildings by-laws, Town planning schemes, TDR reforms, transit-oriented reforms, and sustainable development. Rapid urbanization will augment futuristic sustainable living with inclusive employment opportunities in order to promote ease of living and a work-life balance. The clean and sustainable mobility will be complemented by setting up special mobility zones with zero fossil-fuel policy, and EV vehicles. To attain the goal of efficient energy management, saving measures to facilitate capacity building and awareness for energy audits will be promoted in large commercial buildings.  

 

Data being the new currency, granting infrastructure status will go a long way in boosting data localization and protecting data sovereignty. It will also enable the sunrise industry to avail long term cheap credit funding. A new legislative framework to improvise the existing SEZ Act will also give thrust to all large industrial enclaves.

 

The economic growth for FY 23 is pegged at 9.27 percent, which seems to be on a downside. India needs double-digit GDP growth in order to eliminate K shape divergence, elevate growth in saddling sectors and boost fresh hiring. The renewed focus on the four new pillars of growth are inclusive development, productivity enhancement, energy transition, and climate action. It is a long-term vision document, skewed towards futuristic growth for ‘India at 100’.

 

It reads out to be a balanced budget with huge impetus on capital expenditure, manufacturing, Atmanirbharta, and last-mile infrastructure, as an effort to kick start the upward growth momentum.

 

The author is National Vice-Chairman, NAREDCO and MD Hiranandani Group