Budgeting For A Viksit Bharat Must Prioritise Infrastructure Sector
Fueling India’s economic ascent through robust sectors and policy foresight, paving the way for sustained growth and global prominence, rights, Harish Agarwal, Chief Financial Officer (CFO), Chief Revenue Officer (CRO) and Head Legal, Kamdhenu Group
The burgeoning Indian economy is witnessing robust growth, fuelled by the dedicated efforts of entities in the public and private sector. The contributions from all sectors irrespective of their size play a pivotal role in bolstering the economy. A continued and sustained support from the government and proactive policy interventions in annual budgets over the years has sought to sustain the momentum. With India looking to become the World’s third largest economy by 2027 and a developed nation by 2047, budget 2024 and subsequent budgets will have to leverage prevailing momentum to firmly establish cornerstones for the economy’s continued growth.
Infrastructure and construction is an important sector, developments in the sector not only has a direct impact on the public it also has a bearing on the continued growth of most of the other sectors. From providing housing to the people to providing physical infrastructures and transport networks for goods and services, the sector is the backbone of the ecosystem.
The setting-up of the Real Estate Regulatory Authority (RERA), has led to a massive change in the landscape of the real estate sector. Despite this, instances of delays and non-delivery of residential; flats and houses are still being reported. The next logical step in maximising the gains and elevating the sector is to strengthen the act. This can be done by supplementing the act with the power to enforce its awards and directives. This move will enable RERA to exercise control over the timely implementation of its orders.
Without enforcing powers, enforcing its directives and orders effectively is a challenge for RERA. With the power to enforce vested in it, prompt intervention and timely action of the authority will boost consumer confidence and ensure speedy delivery of justice to them. A strengthened RERA will be more effective in regulating the sector and fix accountability on developers and reduce fraudulent practices by builders. Such a move will also ensure transparency in the sector and incentivise investments into the sector.
The labour class providing the much needed man-power to the various sectors still awaits the implementation of the new labour reforms passed four years back. The labour reforms promised to bring about crucial changes to the employment landscape and improve social security provisions for workers. However, despite their enactment, the effective implementation of these reforms on the ground has been sluggish and fraught with challenges. Expediting the implementation of the reforms will further streamline the labour force. An empowered labour force will boost the economy as workers stand to gain more from enhanced productivity and labour.
On ease of doing business, ground realities have shown much progress in streamlining, digitisation and simplification of bureaucratic procedures. Single window clearances, unified taxation through GST and a generally more accommodative policy framework has greatly reduced hurdles faced by businesses.
Notwithstanding the gains made towards ensuring ease of doing business, there remains persistent obstacles and challenges which impede businesses. The going is still tough for smaller enterprises and there are regional imbalances in enforcement of regulations. Also, the various laws and policies can have varying interpretations across states leading to gaps in ease of doing business. Add to this the existing infrastructural gaps, logistical roadblocks and inequitable flow of investment often impacts business expansion and growth.
While much has already been achieved, ground-level realities differ across regions and this needs sustained efforts at all levels of governance both at the state and central levels. The various stakeholders will also need to collaborate to ensure continuous reforms, develop infrastructure and a conducive environment that is attractive to investors.
The salaried class constitute a major chunk of the income tax payer base in the country. Higher tax exemptions can provide relief to salaried individuals who face increasing expenses related to housing, education, healthcare, etc. especially in urban areas. The government must look at avenues to provide relief to the salaried class while meeting its revenue requirements. All said and done, it is the duty of the government to look at the welfare of all its citizens and that can be best achieved with the active participation of all stakeholders.
About the Author:
The Author of the Article is Harish Agarwal, Chief Financial Officer (CFO), Chief Revenue Officer (CRO) and Head Legal at Kamdhenu Group