Experts believe India is likely to surpass Japan as the 3rd largest economy in the next decade, and the Budget 2023 will help India get there.

Widespread sentiment among analysts is that the Union Budget 2023 struck a healthy balance between growth-based and welfare-based policies. Coupled with the fact that India is expected to maintain its economic stability during the anticipated global recession, experts view a bright future ahead. FM Nirmala Sitharaman, last week, underlined the 7 main priorities of the government for the year 2023-24 – inclusive development, reaching the last mile, infrastructure and investments, unleashing potential, green growth, youth power and financial sector.

According to Arun Prabhu, Partner & Head – TMT, Cyril Amarchand Mangaldas, “All the investments in the public sector will see a cyclic effect and give rise to an economic output multiplier. The Rs 10 lakh crores allocated to the public sector is a significant boon for the economy. India is clearly headed toward becoming a $5 trillion economy and should surpass Japan as the 3rd largest economy within the next 8-10 years.”

Moreover, a heavy focus on the green industry in the Budget has given a further boost to the optimism among specialists. Research has shown that investing in green energy could result in a 4% increase in the GDP, says Richa Roy, Partner in Cyril Amarchand Mangaldas, as well as create millions of jobs.

The Budget announced an Urban Infrastructure Development Fund, along with plans to create sustainable cities. “Indian cities have been facing massive pollution issues for a while, and creating sustainable cities and infrastructure is the way to go. Additionally, India’s plan to launch ‘100 critical sustainable infrastructure projects’ to boost last mile connectivity will play a crucial role in improving the delivery of food, fertilisers, coal,  etc,” stated Ramanuj Kumar, Partner, Cyril Amarchand Mangaldas. The Budget announced an outlay of Rs 75,000 crore for the above.

Furthermore, the government’s focus on technology to accelerate the growth of the data center economy may play a key role in achieving its growth targets. “The first union budget of Amrit Kaal reflects a demand side and supply side focus on key technology such as AI, robotics, and drones. This includes the inclusion of key imperatives such as inclusion and unleashing potential, and creating capability, through centres of excellence in AI, and a skill India platform,” said Arun Prabhu, Partner & Head – TMT, Cyril Amarchand Mangaldas.

https://www.financialexpress.com/economy/heres-how-blockbuster-budget-will-help-india-become-5-trillion-economy-massive-boost-to-these-key-sectors/2972719/