New Delhi, February 01, 2021: The Union Budgets provision for doubling the MSME allocation and setting aside Rs 15,700 crore in FY22, is a testament to the nation’s resolve towards strengthening its local manufacturing base and realising its vision for a self-reliant India. Further, the Rs. 1.97 lakh crore allocated over the next 5 years for Production Linked Incentive Schemes to create manufacturing global champions for an Aatmanirbhar Bharat Will nurture size and scale and create jobs for youth. The enhanced outlay of 1,18,101 crores announced for the development of the Roads and Highways infrastructure would benefit the corollary industries like cement, steel and transportation, showcasing potential for recovery from the slowdown presented by the lockdown. In light of the government’s move towards reducing air-pollution and the impetus provided to the renewable energy sector, sustainability-oriented products can be effective drivers of maximising energy efficiency and a big contributor to reduction in air pollution which were also the key highlights from the budget today. The budget has attempted to strike a balance between supporting growth and a modest deficit reduction. The budget addresses issues of supply scarring and the demand constraints across all industries, and a set of fiscal and tax relief measures that would go a long way in boosting aggregate demand.
Infrastructure, Sustainability & Skill Development
The Union Budget 2020-21 heralds a positive turn in the infrastructure ecosystem of the country. The proposed investment on various infrastructure development projects under the National Infrastructure Pipeline will set India on the right path towards improving the ease and standard of living across major Indian cities. Further, the investments in infrastructure will be pivotal in enhancing the nation’s manufacturing prowess, thereby acting as a catalyst in India’s journey towards becoming a powerhouse for local production.
The allocation of INR 1000 crores and 1500 crores for the solar and renewable energy sectors respectively is indeed a commendable move by the centre for achieving the nation’s targets for Renewable Energy. The budgetary allocations towards reducing air pollution is a welcome step as it will incentivise firms to invest in low carbon technology and fasten their transition towards carbon neutrality.
Added to this, the National Skill Development Agency’s special emphasis on infrastructure-focused skill development and the move to include young engineers in the Project Preparation Facility for upcoming projects, will play a pivotal role in addressing the issue of skill gap and job creation among the nation’s workforce.
Corporate Comm India (CCI Newswire)
