Union Budget 2022, journey towards a $5 trillion economy!
Our journey to a $5 trillion economy by 2024-25, the vision of which was laid down in the pre-COVID budget, was interrupted by the pandemic.
The past two budgets have seen a spotlight on healthcare sector, and it is truly to our credit as a nation, that all stakeholders have worked together to fight the pandemic. The fact that we have given over 1.5 billion jabs to people, is now our shield against any future risks. India is in a strong position to overcome future challenges posed by the pandemic, due to the rising vaccination coverage.
Budget 2022 projects India’s economic growth estimates at 9.2%, to be the highest among all large economies. Big announcements include digital currency, e-passports and a slew of infrastructure projects. 6 million new jobs to be created under the Production Linked Incentive scheme in 14 sectors. Under the PM Gati Shakti initiative for multi modal connectivity, the government’s allocation of ₹20,000 crores will play a key role in the development of efficient logistics in the country. The “One Station, One Product” is a welcome initiative, given the global supply chain disruptions faced over the past year. National Highways network to be expanded by 25,000 kms in 2022-23, 400 new generation Vande Bharat trains to be manufactured in next 3 years, 60 km of ropeway projects under the Parvat Mala project, Metro systems, muti-model connectivity etc, 100 Gati Shakti cargo terminals in the next 3 years.… these infrastructure projects will give boost to industry.
It will also create new job opportunities. Farmers will also benefit from new budget announcements such as Procurement of crops, NABARD to facilitate fund with blended capital to finance startups for agriculture & rural enterprise, direct payments for minimum support price, Chemical free, natural farming etc. Digital University and One Class, One TV channel expansion up to 200 channels will make up for loss of formal education due to Covid.
Defence’s 68% capital procurement budget earmarked from domestic players. 25% of R&D budget help to open Defence R&D, for startups, private industry and academia etc. are some announcements which will make the defence sector buzzing.
The big boost will be the increase in capex by 35%+ to 7.5 Lakh crores, which will help various sectors, including Automation, as it’s now an integral part of any infra & industrial development. And after this historic budget, the current Government has made it very clear that their total focus is on overall growth and they don’t want to indulge in appeasement or freebies politics. Which in turn gives lot of confidence on the long term growth and will definitely open new doors for FDI in various dimensions. We are very positive on the budget and expect the Industrial Automation market size to increase by CAGR of 10% plus for next few years.
Thanks & Regards,
Mr.Varun Arora
(General Manager)
Exor India Pvt Ltd.
Tel: +91 2227840422
Email: sales.in@exorint.com
Website: www.exorint.com
