Indian business leaders in Singapore welcome Union Budget

Sitharaman unveiled a Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to fire up the key engines of the economy

Indian business leaders in Singapore lauded the Union Budget for 2022-23 presented by Finance Minister Nirmala Sitharaman on Tuesday, saying it is in tune with the global trends and a "giant step" towards making India a $5 trillion economy in the next few years.

Finance Minister Sitharaman on Tuesday unveiled a Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic.

While she primed up spending on infrastructure to create jobs and boost economic activity, Sitharaman did not tinker with income tax slabs or tax rates.

Her Budget for the fiscal year beginning April 2022 proposed a massive 35 per cent jump in capital expenditure to Rs 7.5 lakh crore, coupled with the rationalisation of customs duty, an extension of time for setting up new manufacturing companies and plans for starting a digital currency and tax crypto assets.

Girija Pande, Chairman of the Singapore-based Apex Avalon Consulting Pte Ltd, said the 34.5 per cent increase in infrastructure capital expenditure is a very welcome announcement and will have a multiplier impact on incomes and employment.

He welcomed the launch of the Central Bank Digital Currency (digital rupee) by the Reserve Bank of India, terming it a "very bold step that follows global trends".

Pande, whose company provides Management Consulting and Business Research to businesses in the fast-growing Asia Pacific market, however, said the 30 per cent tax on digital assets is heavy and may have to be reduced.

Also read: Budget 2022 and start-ups: Welcome push, but India needs more

"Two areas of missed opportunities are lack of major thrust in exports or youth employment. India needs to become a major exporter if it wants to become a major economic power. That’s how East Asia developed," he said in response to the Budget presented by Sitharaman.

“The budget is a giant step to get our economy on track and propel it to reach a target of $5 trillion in the next few years," said Atul Temurnikar, Chairman and Co-founder, of Singapore-based Global Schools Foundation.

He said the aim of the budget was to give support and push to agriculture and small businesses, which it has managed to do.

“In the bargain, it has also given a major thrust to India’s greater initiatives like Digital India, Make in India and Startup India.

"It is also great to see the budget, under the guidance of Prime Minister Narendra Modi, giving due focus to new-age economic thrusters like the electric vehicles industry and crypto. The plans for the digital rupee, for instance, have come at the right time,” said Temurnikar.

The Budget 2022 has hit the nail on the head when it comes to education initiatives and shows that the government has its finger on the pulse of the nation as it charges into the digital age of education, he said.

“The focus of digital learning, formation of digital universities and the promise of bringing training and digital infrastructure to the education sector – all this just goes to show that the government has one eye on the future even as it deals with current pandemic-related problems. In addition, I am very excited about the announcements on new e-learning content delivery platforms on handheld devices," he said.

"This is good news for educational institutions who can deal with external disruptions with more ease and confidence in the future. This is also a reflection of how the Modi government is thinking ahead of the curve as we charge into the 21st century with the full force of youth behind us,” said Temurnikar, whose Singapore-headquartered foundation has 26 campuses in 9 countries including Japan, South Korea, the UAE, Saudi Arabia and Malaysia.

Strengthening the digital education programme via digital university and supporting the MSMEs' to promote Atma Nirbhar Bharat and job creation for 60,000 youth via Atma Nirbhar Bharat programmes are very positive announcements, said Mamta Mandal, a business consultant and promoter of Hindi language among Indian Diaspora under Global Hindi Foundation.

"Digital university programme is the need of the hour and timely execution will be key for filling the urban-rural education divide which has widened due to Covid situation," said Mandal.

"Domestic consumption and manufacturing, however, are still declining though the reconfiguration in many sectors has been phenomenal," she said, calling for a focus on employment generation.

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