Budget has futuristic vision and ideas for eco transformation: FM Sitharaman

Finance Minister Nirmala Sitharaman today said the first budget of Modi 3.0 has a futuristic vision and touches upon key ideas for economic transformation like factor reforms, the readiness of the youth for industry 4.0, and focus on research and development, along with a continued emphasis on infrastructure.

“This Budget is first of all futuristic. We are looking at the futuristic India and the necessary actions required at this stage to bring in that futuristic view. Even in the vote on account – a good indication was given as to what is in store for the general budget,” Sitharaman said in a freewheeling discussion with the industry moderated by Sanjiv Goenka, chairman, RP-Sanjiv Goenka Group at OPEN House – an event organised by the OPEN magazine.

“What that futuristic vision is: Towards getting India to have a lead advantage for research, R&D for the private sector, and space sector, money has been given and a plan has been drawn. It is not only going to be the government but also for all small and big players who will come in this sector. The government will support them, and the initial allocations have been made,” Sitharaman said. 

The finance minister also emphasised the need to prepare the youth for future jobs. “The vision equally places emphasis on industry 4.0, and the readiness of our youth for it,” she said skilling has to address the new industry’s requirements and does not have to be done in the old traditional way for old India’s requirements.

“Therefore, the skills that we talked about in the five-item package are the skills that are required by the industry. It is not just about coming and doing the foundry work and going back. It is going to be AI-driven. Equally labour-intensive units also need to be modernised,” she said adding the government aims for India-specific solutions for a blend of technology and use of manpower.

Sitharaman said bringing more advantages of research and technology into agriculture, factor productivity and factor-related reforms are the addition to the futuristic vision. “Factor reforms have taken a big space in this budget. And in that of course, a lot of work has to be done by the states. It is not going to be easy. So, when I say futuristic there are such things, which we can take on board and understand,” she says. 

She, however, adds that the centre, states and industry will have to come together for these reforms to be achieved. “It is a repeated message that it is not the central government’s action plan, but it is involving everybody,” she says. 

The FM says the government will also continue to emphasise infrastructure as it leads to a multiplier effect on the economy. “Of course, we are continuing with the emphasis on infrastructure, and public expenditure to build public utilities and creating connectivity. People repeatedly ask me about rural distress, consumption demand, and small savings. We have explained that when the government spends, the multiplier effect will have an impact on every one of these areas,” she says. 

On fiscal management, the finance minister says the government is conscious of handling macroeconomic issues with a greater sense of responsibility.: “We have emphasised fiscal prudence. The fiscal deficit number could have been retained at 5.1%. But we are every moment conscious that on the one hand, we need to have bang for each and every buck that we spend but we also have to handle macroeconomic issues with a greater sense of responsibility,” she says.