Umesh Revankar

The forthcoming Budget offers an opportunity to reaffirm the unwavering commitment of policymakers to fortifying economic resilience and propelling India's decade-long journey towards global prominence. Despite global uncertainties, the interim Budget is poised to positively restore sentiments, and chart a blueprint to navigate precarious market dynamics and infuse optimism across sectors. While signals of fiscal conservatism emerge, the focus is likely on reinforcing existing measures, providing crucial sectoral support, and sustaining key growth factors. The Budget will emphasize the persistence of reform and initiatives for systemic improvements.

Conducive environment to promote NBFCs as engines of credit inclusion

We don’t foresee any significant changes in taxation norms for NBFCs. However, we certainly have confidence in the government's commitment to fostering an encouraging milieu for NBFCs to solidify their role as key drivers in promoting credit inclusion. The NBFC industry has been requesting a lowered minimum loan size for debt recovery under the SARFAESI ACT on par with banks looking at the granularity of NBFC loan size.

Continuous focus on giving thrust to the infrastructure capex

The forthcoming Budget should maintain a steadfast commitment to amplifying infrastructure capex, aligning with the government's ‘Amrit Kaal’ and ‘Make in India’ visions. An accent on infrastructure Capex will persist, particularly with a keen emphasis on enhancing logistics—an imperative for the success of ‘Make in India.’ For the seamless execution of infrastructure projects, the progress of the PM Gatishakti scheme is key and we expect a bigger budget allocation. The Budget outlay may once again reiterate the government's resolute commitment to robust infrastructural development to foster long-term resilience and sustained national progress.

More drive on privatization

Policymakers appear ready to implement the 'minimum government, maximum governance' agenda set a decade ago. The forthcoming Budget is anticipated to articulate strategies for expediting privatization, focusing on fiscal deficit management and sustaining accelerated disinvestment for productive expenditures. The Budget proposal is positioned to underscore a commitment to aligning policies with economic realities, fostering efficiency, and promoting resilience in the ever-evolving economic landscape.

Cushioning MSME sector thrusts

The Budget must prioritize the MSME sector with comprehensive measures to elevate the business environment. Collective emphasis on targeted interventions will not only rejuvenate the MSMEs but also fuel overall economic revival by empowering these vital contributors. Prioritizing better credit flow, streamlining compliance processes, and fostering a more conducive business environment are essential pathways, to addressing long-awaited demands.

GST standardization to boost consumption

Standardizing and simplifying GST procedures is poised to inject a significant boost into consumption patterns by easier compliance processes for businesses, and reducing operational complexities. The resultant efficiency is likely to propel increased consumption and ultimately align with the overarching goal of creating a robust and harmonised tax environment.

Strengthening digital inclusivity

Investments in digital infrastructure, incentivizing digital literacy programs, and fostering an environment conducive to digital innovation will boost a more digitally inclusive economy. The budget must outline measures that bridge the digital divide, ensuring equitable access to technological advancements.