Budget focuses on manufacturing, infrastructure, urbanisation- the key drivers of growth
Elaborating on the Union Budget 2014-15, Amitabh Kant, Secretary, DIPP, Ministry of Industry said that manufacturing, infrastructure and urbanisation - which are the most important and key drivers of economic growth - were the prime focus of the budget. He emphasised that no country in the world has grown and created jobs without having a manufacturing base.
needs 1.5 million jobs per month - to create 18-19 million jobs per
year manufacturing needs to grow by 10-11% per annum. According to a
CII statement Kant felt that India has started premature
de-industrialization and there was a dire need for India to get
manufacturing back on track.
in threshold limit for investment allowance, predictability in
taxation policy, FDI in defence and insurance up to 49%, permission
of 100% FDI in construction and reduction of threshold limit in built
up area for FDI, introduction of E-business portal and several
measures such as an advisory from Central government to all
departments and state governments with regard to self certification,
one register for all purposes, etc are testimony of government's
commitment to revive manufacturing sector in India.
Secretary reassured the industry that government is committed to
correct the inverted duty structure and few steps have been taken in
this budget which are likely to provide positive impetus. He felt
that FTA has also impacted the manufacturing sector in India and
government is looking at measures such as deemed export status to
compensate / promote domestic manufacturing.
constraints, he stated that Land acquisition and labour laws are two
areas where India needs to do a lot. He appealed the industry to
identify 5-6 sectors where India can emerge as world
leader in the
of the most innovative and promising steps that this budget has
announced is allocation of Rs 10000 crore for entrepreneurship
development. This is based on the model tried in Israel and would
work like a venture capital fund to help almost 1 million start-ups
in the country.
On infrastructure front, Kant said that the
relaxation on SLR / CRR announced in the budget is likely to help
increase the funds availability for infrastructure projects. However
he felt that Project Development is the key where govt takes all the
clearances and infra companies just focus on construction and
development aspects. The budget has laid a special focus on
industrial corridors and dedicated freight corridors to provide world
class infrastructure, ultimately helping manufacturing in the
While every minute 30 Indians will move from rural
areas to urban cities for the next 20 years, india is hugely lacking
in approach in building or upgrading its city infrastructure. This
budget has taken a huge stride in terms of laying a focus on city
development and urbanisation, Kant asserted. India' s aim to build
100 smart new cities will help India urbanise to meet the growing
that it was just 45 days to prepare for this budget, Amitabh Kant
concluded that the Government has done a commendable job, laying and
providing a sound foundation and a direction for growth, at the same
time keeping the fiscal deficit target to 4.1%.