In a compelling discourse, Sanjiv Puri, President of the Confederation of Indian Industry (CII), underscores the imperatives for the upcoming budget to bolster rural capital expenditure and invigorate consumption amidst prevailing economic challenges. Addressing Businessline, Puri emphasized the critical need for the Modi 3.0 Government to prioritize public infrastructure investments, with a substantial focus on rural development, to stimulate sustained economic growth.
Puri advocates for a strategic allocation of the ₹2.1 lakh crore dividend from the Reserve Bank of India towards rural infrastructure projects, including housing, agricultural infrastructure, and digital connectivity. He articulates a vision of a vibrant rural economy, underscoring the transformative potential of targeted investments in these areas to foster a sustainable growth trajectory. “The potential for rural spending is immense,” Puri remarked, “Investments in housing, warehousing, and digital infrastructure can catalyze a thriving rural ecosystem.”
Highlighting the aspirational nature of India’s youth, Puri called for comprehensive budgetary measures to create a sustainable income framework. He stressed that the forthcoming budget should reflect a decisive shift towards rural and consumption-centric policies, addressing the distress that has been palpably evident in recent state election outcomes.
Puri’s insights also encompass a call for a 25% increase in capital expenditure allocation, significantly higher than the previous year’s increment. He advocates for extending schemes like PMSVANIDHI to rural areas and formulating new initiatives akin to MNREGA for urban poor, thereby ensuring inclusive growth.
Addressing fiscal policy, Puri insists on adherence to the fiscal consolidation roadmap, targeting a 5.1% fiscal deficit by March 2025. Despite the allure of populism, he asserts the necessity of maintaining a development-focused budgetary stance, reflecting the success of past policies in driving GDP growth.
On the matter of banking sector reforms, Puri reiterated the urgency of implementing the long-pending privatization of Public Sector Banks (PSBs). He highlighted the crucial role of large banks in financing India’s growth and pointed out the Centre’s missed disinvestment targets as an area ripe for immediate action.
Furthermore, Puri advocates for a rationalized GST structure, proposing a transition to a three-rate system to drive consumption and moderate inflation. He calls for a streamlined import duty regime to incentivize domestic value addition and a robust anti-dumping framework to safeguard Indian industries from unfair competition.
Concluding with a nod to macroeconomic stability, Puri expressed optimism for a potential RBI rate cut, contingent on favorable monsoon outcomes and manageable food inflation. He also stressed the indispensability of social welfare priorities in the government’s growth agenda, advocating for strategic investments in public capital expenditure, human capital development, and climate adaptation.
Puri’s comprehensive vision, articulated with the precision and foresight of a seasoned industry leader, provides a nuanced roadmap for navigating the economic landscape, balancing growth imperatives with social equity. His call for a robust, inclusive, and forward-looking budget underscores the strategic priorities essential for India’s sustained economic resurgence.