India’s sharp economic recovery post COVID-19 and Budget initiatives will help in sustaining growth momentum in the years to come, Finance Minister Nirmala Sitharaman said on Tuesday.
The government’s road map for imparting momentum to the economy focusses on growth at the macro level and complementing it with all-inclusive welfare at the micro level, promoting digital economy and fintech, technology-enabled development, energy transition and climate action and relying on a virtuous cycle of investment and growth, she said in a written reply to the Rajya Sabha.
The government’s road map was put into effect in 2014, she said, adding that major reforms, including Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and significant reduction in corporate tax rate, were implemented.
The reforms contributed to the real GDP growing at an annual average rate of 6.8 per cent during 2014-20, she said.
At the end of this period, she said, the government announced National Infrastructure Pipeline of projects to take economic growth to the higher level.
“India’s sharp economic recovery in 2021-22 and Budget measures have prompted international rating agencies to forecast a real GDP growth above 8 per cent in 2022-23. This will sustain the growth momentum in the economy,” she said.
The Union Budget 2022-23 is the latest road map of the government for taking India’s economy to a higher growth trajectory, she said, adding, the PM Gatishakti Scheme in the Budget is a huge investment in physical infrastructure drawing from the National Infrastructure Pipeline.
The government’s direct participation in building infrastructure is reflected in the capital budget increasing once again by 35 per cent over the previous year, she said.
The road map further supports the MSMEs through extension of Emergency Credit Line Guarantee Scheme (ECLGS), revamping of Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme and implementation of Raising and Accelerating MSME Performance (RAMP) programme, she said.
The ‘Make in India’ programme is also facilitated by replacement of the Special Economic Zones (SEZ) Act with a new legislation, she added.