First Amrit Kaal budget lays solid edifice for developed India

Duina Barbaruah

(dwinakashyap@gmail.com)

The first budget 2023 of Amrit Kaal was presented by Union Finance Minister Nirmala Sitharaman on the floor of Parliament on February 1. Unveiling her fifth straight budget, Sitharaman commenced her budget speech by calling it the first budget of “Amrit Kaal.” Throughout her address, she referred to the term ‘Amrit Kaal” repeatedly.

“Our vision for the Amrit Kaal” includes a technology-driven and knowledge-based economy with strong public finances and a robust financial sector. To achieve this ‘jan-bhaagidari’ (public participation) through ‘sabka saath, sabka prayas’ (efforts by all) is essential,” Sitharaman quipped.

“This is the first budget in Amrit Kaal; this budget hopes to build on the foundation laid in the previous budget and the blueprint laid for India at 100; we envision a prosperous and inclusive India in which the fruits of development reach all,” the Finance Minister said in her budget speech.

“The Indian economy is on the right track and heading towards a bright future.” India’s global profile is rising due to its world-class digital infrastructure and proactive role in frontier areas,” Sitharaman pointed out.

Giving his reaction, Prime Minister Narendra Modi said the first budget in Amrit Kaal has established a strong base to fulfil the aspirations and resolve of a developed India.

He said this budget gives priority to the deprived and strives to fulfil the dreams of the aspirational society — the poor, villages and the middle class.

The prime minister congratulated Sitharaman and her team for the “historic” budget.

It was Prime Minister Narendra Modi who coined the term “Amrit Kaal” in 2021, during the 75th Independence Day celebrations.

Delivering his speech from the ramparts of New Delhi’s Red Fort, Modi said, “The goal of Amrit Kaal is to ascend to new heights of prosperity for India and the citizens of India.” Modi further added that “Amrit Kaal” is for the next 25 years and the country must start working towards improving the lives of its citizens, reducing the divide between the villages and cities, lessening the government’s interference in people’s lives, and building modern infrastructure in India.

We don’t have to wait long to achieve our goals. We have to start now. We don’t have a moment to lose. This is the right time. “Our country also has to change, and we as citizens have to change ourselves too,” the Prime Minister announced.

According to an analysis by Bloomberg, Modi used the term 14 times during his Independence Day speech last year.

The term “Amrit Kaal” emanates from Vedic astrology and indicates a sort of golden era. In the run-up to the 2024 general elections, the Bharatiya Janata Party-led government has heightened the emphasis on “Amrit Kaal,” saying that the coming period in India is going to be its most prosperous, with economic growth and social justice. “Amrit Kaal” also describes the hope for a better future where India would be self-reliant and fulfil all of its humanitarian obligations. One of the keys to unlocking India’s growth potential is enhancing private investment, and the Finance Minister has more than delivered on this count through a transformative budget with a focus on capital expenditure, sunrise sectors, technology, and green growth.

If we dissect the budget, we observe that the sustained focus is on capex. There has been an increase of 33 percent in expenditure, which will eventually take capital expenditure to Rs 10 trillion in the financial year 2024, compared to Rs 7.5 trillion in the previous fiscal. The railways will witness a whopping capex of Rs 2.5 trillion. Moreover, the budget accords top priority to 100 critical transport infrastructure projects for both first- and last-mile connectivity. Regional air connectivity will receive an unprecedented boost through 50 additional airports, heliports, water aerodromes, and advanced landing grounds. The newly established Urban Infrastructure Development Fund will pave the way for building the cities of tomorrow. That is not all. The credit guarantee scheme for MSMEs has been revamped, with an investment of Rs 9,000 crore. This will facilitate collateral-free guaranteed credit of Rs 2 trillion.

Through the revision of tax slabs, the budget gives an added impetus to domestic consumption by putting more money in the hands of people. With an increase in domestic consumption, domestic capacity utilisation will also automatically rise, resulting in higher investment to meet the additional demand. Skilling has been given a thrust through the launch of Pradhan Mantri Kaushal Vikas Yojana 4.0, the unified Skill India Digital Platform, and the extension of stipend support to 47 lakh new apprentices. Increased capex and the new tax regime have gone hand-in-hand to ease the business environment. The budget must be applauded for using the PAN as a common identifier for businesses, giving an entity digi-locker, making hassle-free KYC processes, and devising a unified filing process, thereby reducing drastically the compliance burden. The tourism sector has also been given much emphasis, with 50 destinations to be developed as complete packages under challenge mode. The budget entrusts the States to set up Unity Malls, giving impetus to one district, one product (ODOP), handicrafts, and GI products.

Another striking feature of the budget is that it focuses on the sunrise sectors of growth and technological transformation. The establishment of centres of excellence (CoE) for artificial intelligence (AI) will help augment AI-led solutions for the country’s pressing problems. The National Data Governance Policy is also a laudable initiative of this year’s budget. With access to anonymized data, startups and academics can build innovative products and carry out cutting-edge research by applying tools like data analytics. The announcement in the budget for the setting up of 100 5G labs will open avenues for new business opportunities. Yet another major initiative is the support extended to battery energy storage systems. The inter-state transmission system and grid integration of renewable energy from Ladakh will be constructed with a total outlay of Rs 20,000 crore. The establishment of digital public infrastructure for India’s agriculture sector is another key initiative. With the newly announced agriculture accelerator fund, there will be a sea change in the technological transformation of the agricultural sector.

Focusing on green growth is a key feature of this year’s budget, with a staggering Rs 35,000 crore being provided for capital investments, furthering our energy transition and net zero goals. The Green Credit Program will be launched to incentivize environmentally conscious actions by companies, local bodies, and individuals. To boost soil health and agriculture productivity, PM Pranam has been launched to incentivise states and UTs to promote balanced use of chemical fertilisers and use of alternative fertilizers. Maintaining fiscal discipline while delivering on increased capex and tax breaks, the first budget of Amrit Kaal lays a solid edifice for catapulting India into the league of developed nations, and that, too, at a time when India has assumed the G20 presidency. Be that as it may, there is a need to move on with a steely resolve for the next 25 years, with a renewed focus on the Five Resolves: a developed India, removing every ounce of slave mentality, pride in our glorious heritage, unity, and fulfilling citizen’s duties.