Karun Rishi, president of USA India Chamber of Commerce has said that the future ready budget presented by Union Finance Minister Nirmala Sitharaman aims to realize 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% of GDP for FY25, down from the 5.1% target in the interim budget. Fiscal discipline is crucial for sustainable economic growth and maintaining investor confidence. 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.
According to president, the budget sets the economy on a long-term growth path through upskilling and easing unemployment. He said 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. 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 further said the government signaled policy continuity and focus on the infrastructure sector by continuing to allocate 3.4% 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% in 2019-20 to 3.4% 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.
