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Stimulate India's Vision Of Becoming Fastest Growing Economy

We hope the government will continue to invest in boosting the infrastructure for smart cities, logistics and transportation, manufacturing etc. to drive consumption, spur growth, and add to job creation.

Photo Credit : PTI

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The growth witnessed in the Indian economy is a testament to how the business has bounced back after the second wave of COVID-19, owing to the resilience demonstrated by the organizations and a favourable budget released last year.  

Given the ongoing situation, we expect the Union Budget 2022 to further stimulate India's vision of becoming the fastest-growing economy this year and insulate the impact of the subsequent waves & disruptions. We hope the government will continue to invest in boosting the infrastructure for smart cities, logistics & transportation, manufacturing etc. to drive consumption, spur growth, and add to job creation. Furthermore, focus on IT infrastructure will increase private capital, bring about operational efficiencies and improve productivity, leading to higher output. 

Simultaneously, increased investment in healthcare infrastructure and privatization of the sector can improve penetration of healthcare services in rural and urban areas. Since this new variant might lead to higher caseloads, we expect support measures, better facilities, subsidies, and policy amendments to eliminate massive impact on the citizens.  

As far as the technology industry is concerned, I have four expectations from the upcoming Union Budget 2022. Firstly, to reset the economy, India should leverage technology, a growing youth population, and an emerging skill set to serve global markets. Accelerated investments in the digitalization of sectors such as manufacturing, logistics, transportation, agriculture, BFSI, healthcare, etc. will fuel India’s journey to become the growth engine of the world.   

To this end, I think increased incentives, tax exemptions, and consistent policies are necessary to expedite India's innovation and R&D quotient at par with the developed nations. This will also encourage more investments from the private sector, unlocking India's potential in allowing competitiveness. The vast pool of talent combined with the research infrastructure can create new cutting-edge skill differentiation in the deep tech sector, enabling India to take center stage in the global tech space.   

Thirdly, accelerating 5G infrastructure deployment to enable the demand for higher data consumption at faster speeds is critical. The Indian government has been supporting the development of 5G technology and, I am sure, it will be one of the most vital technologies that will fast-track the digital transformation journey in 2022. Further, financial support, policy amendments, and regulatory assistance will encourage the rapid commercial deployment of 5G networks, enabling the deployment and adoption of technology-driven solutions such as Internet of Things (IoT) in the manufacturing, infrastructure, and logistics sector. IoT will be crucial to building a 'Smart India,' i.e., connected, safe, and secure for its citizens. 

Lastly, reduction in taxes like the goods and services tax (GST) for a limited duration will lead to a frontload of transfers to states, thereby enhancing income.  

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Union Budget 2022 Union Budget 2022-23

Aalok Kumar

President and Chief Executive Officer, NEC Corporation India

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