Breaking Fresh Ground

THE FIRST FULL-FLEDGED UNION BUDGET under Modi government 2.0 is an all-round one that not only focuses on all key segments of the Indian economy but promises to break fresh ground in areas like electric vehicles, inviting global majors for setting up manufacturing plants in sunrise sectors and turning India into a global hub for maintenance, repair and overhaul (MRO) industry.

- Anil Agarwal

Despite pressures to step up spending to boost economic growth, the budget has been pragmatic and steers clear of any big-ticket populist promises. To borrow an analogy from cricket, this budget has been an exercise in consolidation so that pick up in GDP growth in coming years does not get stymied for want of a solid base.

The budget for 2019-20 aims at significantly strengthening India’s physical infrastructure by committing to invest a whopping Rs 100 lakh crore in the next five years. This will be achieved by building expressways, highways and 125,000 km of village roads, industrial corridors, dedicated freight corridors, waterways, regional airports, gas grids, and seamless Internet connectivity till the last gram panchayat. At the same time, the budget has announced several measures to boost inflows of foreign capital into the country along with the domestic corporate bond market and this will ensure that mega infrastructure projects do not face financing hurdles.

The government has also stated unequivocally that strategic divestment of PSUs is a priority area and it will also look to bring down its holding in select PSUs below the threshold of 51 per cent. I have always maintained that our PSUs hold significant intrinsic value and this value can be unlocked with participation of the private sector. I am confident that a number of our PSUs, which have been underperforming, can be turned around once the government gives their control to the private sector.