Thrust on tackling supply-side bottlenecks
The reforms such as issuance of digital rupee, green bonds, extension of ECLGS will accelerate the financing and augment the credit flow in the economy
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It's a growth-oriented Budget on the backdrop of the pandemic. It is laudable that the focus is centred on clean energy, infrastructure, agriculture, MSME, education, digital economy, hospitality, transportation and logistics and increasing capital expenditure for overall development of the economy. The government's thrust has also been to relieve the supply-side bottlenecks.
The reforms namely the issuance of digital rupee, green bonds, extension of ECLGS up to March 23, increase in the allocation of ECLGS and CGTMSE, announcement of 75 digital banking units and 1.5 lakh post offices to be connected to core banking for ease of financial transactions especially in the rural and semi-urban areas, are the hallmarks for a healthy financial sector that will accelerate the financing and augment the credit flow in the economy.
Mostly unchanged direct tax regime has led to stability in the tax environment and gives us confidence that the economy is on the path of recovery. The implementation of the proposed steps and also the reforms will help in raising demand, create jobs and augment India's economic growth.
(The author is MD & CEO of Indian Bank)
