By ZBC Reporter
INDIAN government has set high targets to become self-reliant and to grow in double digits according to the 2021-22 national budget.
The national budget comes at a time when the International Monetary Fund (IMF) projected 11.5% growth rate for India on the year under review. India Finance Minister, Nirmala Sitharaman, presented the annual budget early this month.
“The 2021 Budget has been hailed as growth-oriented as it proposes to realign India’s history of high development. The budget lays the foundation for increasing consumption while ensuring that the government’s investment is deployed to build infrastructure leading to a US$ 5 trillion economy by 2021-25,” reads some of the media reports.
The budget also focussed on inclusive development for aspirational India, Health and wellbeing, financial capital and infrastructure development.
According to media reports, the Government of India launched the Atmanirbhar Bharat Scheme (i.e. Self-Reliant India) in three tranches, which when combined with the central bank, the Reserve Bank of India, reforms created a financial impact of US$ 371.45 bn.
“The Budget of FY22 resonates with the vision of Atmanirbharta (self-reliance) and rests on the 6 pillars which form the bedrock of the budget: For health and welfare, the budget allocation of US$ 30.65 billion, a 137% increase from the previous year, focuses on preventive, curative and holistic healthcare.
“The advances in India’s healthcare system can be gauged from the fact that India has so far given authorization to two of the six vaccines for emergency use to fight the Covid-19 pandemic. Starting 16 January, India has already inoculated over 6 million healthcare and frontline workers so far. India is also supplying Made in India Covid-19 vaccines to many other countries, even before its own needs are taken care of,” according to reports.
With the aim to become a US$ 5 trillion economy, the Government has committed nearly US$ 27 billion over 5 years starting in FY 2021-22 so that the manufacturing sector can grow in double digits on a sustained basis.
“Development schemes have been announced for 13 sectors to establish global manufacturing pioneers for the Aatmanirbhar Bharat i.e. self-reliant India. In the insurance sector, increasing the Foreign Direct Investment (FDI) cap to 74% from 49% has been proposed. The goal for disinvestment proceeds is set at US$ 23.96 billion. This will involve the elimination of the Centre’s interest in 2 state-owned banks and a general insurance company, as well as the selling of large-scale assets.
“This pillar covers Agriculture and Allied sectors, farmers’ welfare & rural India, migrant workers & labour, and financial inclusion. Allocation to the Rural Infrastructure Development Fund has been increased from US$ 4.11bn to US$ 5.48bn. The 5 major fishing harbours at Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat will be developed as hubs of economic activity. To encourage Seaweed farming, an emerging sector, a Multipurpose Seaweed Park is proposed in Tamil Nadu. Conforming to its principle of inclusivity and aiming to transform India’s unorganized sector into an organized one,” said some reports from India.