17 Jan 2022, 10:26 — 4 min read
The current economic scenario seems to be a mixed bag. This has been a year of recovery led by government support on both the social and the economic front. As February 1 approaches, all eyes are on the Finance Minister.
Infrastructure and related sectors to receive the manna from heaven, through budgetary allocation. This is a typical Keynesian but very effective in times when commodity prices are rising and private sector is not open to capex as there is a lot of spare capacity. Infrastructure tax free bonds can also be allowed. Already Infrastructure reits have a passthrough status. Only issue is that the attractiveness is low as the sector is capital intensive.
Increasing income through defence can be a good long-term solution. It is difficult not to run into loggerheads with allies and key defence suppliers like France, USA and the UK. An additional investment in building capability would be good for the sector as a whole. That said allowing technology transfer JVs could be an uphill task as creators of the technology are unlikely to part ways with the creation. Indigenous capability built over the medium and long term through budgetary support is a better pathway to the future like in case of Brahmos missile export to Philippines.
We face a shortage of doctors and critical illness centres across the country. A vision which encompasses making sure that the patient does not need to travel to other locations for treatment especially for major critical illness is important. An additional outlay to increase the quality of current medical institutions across the country would be a welcome move.
Better legal infrastructure is critical to unlock the capital in the country. It also helps us to attract Capital through the FDI route. It is critical as the wheels of commerce should not be stuck as business stalls in the absence of it thereof. This could be piloted in key commercial centres through Artificial intelligence as suggested by Niti Aayog to reduce the workload enabling savings of time, energy and money.
The India story stays. The corridors in Delhi move the world of commerce. Let’s hope that the budgetary halwa is sweet enough for all of us!
Image source: Canva
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