Statement by Mr R Dinesh, CII President on Interim Budget

A prudent and a substantive interim budget

CII congratulates Smt Nirmala Sitharaman, Minister of Finance and Corporate Affairs, Government of India, for the continued focus on balancing growth with fiscal prudence, while presenting the interim budget today.

The Government has done better than what it had projected on the fiscal front, achieving a fiscal deficit of 5.8 % of GDP for FY24 as against the budgeted number of 5.9% of GDP. The consolidation for FY25 at 5.1% of GDP is much higher than what was expected and is very assuring that India is on the path to achieving 4.5% fiscal deficit by FY26.

In this global environment of high uncertainty, macroeconomic stability driven by prudent fiscal management is of essence for growth and the much-needed resilience.

Inspite of the constrained canvas of an interim budget, the budget proposals have been substantive. The Rs 1 lakh crore fund for promoting new age technologies and R&D will help Indian economy prepare for the technology intensive economic future. The emphasis on state level reforms is very welcome as these are crucial to take the Indian economy towards the goal of becoming a developed nation. Thrust on strengthening the ecosystem for electric vehicles by supporting manufacturing and EV charging infrastructure, building of metros are welcome. Focus on MSMEs by facilitating credit, technology adoption and a supporting regulatory framework will help create jobs, and also help in achieving India’s goal of becoming a global manufacturing hub.

1 February 2024

New Delhi