Introduction

The maiden budget presented by the first full-time woman finance minister and economist Nirmala Sitharaman provides a blueprint to fire up the slowing economy and realise Prime Minister Narendra Modi’s vision of India becoming a $5 trillion economy by 2025.

• She has exercised caution and prudence to keep fiscal deficit at 3.3% of gross domestic product (GDP) against 3.4% assumed in the interim budget. This will improve the image of India with foreign rating agencies.
• The external debt is less than 5 %, which is globally the lowest. T
• he ability to raise foreign currency borrowing and the divestment target of $1.05 trillion, together with public-private partnership, will provide funds for investment in social and physical infrastructure.
• The budget seems to have placed heavy emphasis on sustainable job creation through targeted investment in specific infrastructure, such as housing, road and ports.

Blueprint for growth

Finance Minister Nirmala Sitharaman, sought to tackle several pain points in the economy through incremental steps rather than opting for the spectacular announcement route. The fresh starts therein were:

• Vision for $5 trillion    
• Strengthening economy driven by connectivity, investment, Infrastructure
• Transforming rural lives
• Gandhipedia to sensitize society
• New Jal Shakti Mantralaya to ensure Har Ghar Jal
• India’s soft power
• Harnessing India’s space abilities
• Enhancing ease of direct and indirect taxation

The incremental steps included reassertion of the following;

With this the budget is aspired to put Indian economy on a desirable growth path leading inclusive growth and sustainable development.