Event Report
Sarah Ansari
IMPRI #PolicyWebTalk recently organized an insightful 6-day panel discussion on the prospects of the Union Budget. Held from July 24th to July 29th, 2024, this event was part of the IMPRI 5th Annual Series of Thematic Deliberations and Analysis of Interim Union Budget 2024-25. On July 24th, 2024, the Center for the Study of Finance and Economics (CSFE), IMPRI Impact and Policy Research Institute, New Delhi, hosted a discussion on “Viksit Bharat – Developed India @2047 and Union Budget 2024-25.” The webinar revolved around discussing the nuances of the Union Budget from the micro as well as the macro perspective.
The panel featured a distinguished lineup of experts. The Chair and Moderator for the event was Prof. Nilanjan Banik from Mahindra University, who is a visiting consultant at IMPRI. The panellists included Dr S P Sharma, Ms Yuvika Singhal, Dr Rajesh Shukla, Mr Subhomoy Bhattacharjee, Prof. Pooja Misra, and Mr Saugata Bhattacharya. Each expert brought their unique insights and perspectives, enriching the discussion with in-depth analyses and forward-looking views on the Union Budget’s implications.
Chaired by Professor Nilanjan Banik, Professor and Program Director (BA, Economics and Finance, Mahindra University, Hyderabad), the webinar took off with Mr. Banik introducing the audience to the current status of the Indian economy. He explained that with a growth rate of over 7% over the last 3 years, the Indian economy has been showing promising results. Further, India’s fiscal deficit has also been short of 5%. While countries worldwide have found it challenging to curb inflation rates, India has managed to keep inflation in control, owing to its fiscal deficit rate.
Dr. S. P. Sharma, Chief Economist & Deputy Secretary General, PHD Chamber of Commerceand Industry (PHDCCI), lauded the government for its reforms and policies, which have helped soften the trajectory of inflation in the country. He suggested that the government, the private sector and academia should come together to reach the goal of Viksit Bharat. He highlighted the GYAN (Gareeb, Yuva, Annadata and Nari) focus of the Union Budget as the four pillars for the Viksit Bharat dream. Support for the middle class, MSMEs and the agricultural sector is necessary. He discussed the parameters mentioned to facilitate development such as human sector, energy, infrastructure, etc.. “Macroeconomy set the tone of the budget”, he added.
The mic was then passed onto Ms Yuvika Singhal, (Economist, QuantEco Research; Former Economist, Yes Bank & ICICI Bank), who presented a thorough analysis of the budget through the key milestones of GDP and Per Capita GDP. She further pointed out that with the JAM Trinity at the forefront of financial penetration, India has, in a span of 9-10 years, seen a boom in financial inclusion. While our economy has constantly been showing promising results, she added that to realise our Viksit Bharat vision, our government will have to push for “formal’ jobs as the unemployment rate is very high. Investing in human capital through the provision of education, health, and sanitation is also needed. Lastly, she called AI (Artificial Intelligence) a “known unknown” regarding its implications for our economy in the future.
Mr Saugata Bhattacharya (FormerChiefEconomist, AxisBank), emphasized the “nuts and bolts” of reform i.e., implementation. He raised the question of state-level capacities and rebalancing economic activity and growth in states that are lagging. He added that the finance ministry must continue its fiscal discipline to meet its budgetary deficit goals.
Dr. Rajesh Shukla, (Managing Director and CEO of People Research on India’s ConsumerEconomy(PRICE), Indian Institute of Management Udaipur), stated that “Viksit Bharat” should not be considered a “goal” but rather a “process”. He highlighted that our income inequality needs to be checked in order to see India as a developed nation. He said that the bottom pyramid of our country lacks the capability and capacity to absorb growth and suggested measures to fill the widening gap between rich states and poor states by providing substantial infrastructure to economic hotspots in poor states. He also suggested for better coordination between industry and university link to strengthen our human resources.
Professor Subhomoy Bhattacharjee, (Consulting Editor, Business Standard; Professor of practice, Director, Centre for Regulatory Governance, Jindal Global Law School, OP JindalGlobalUniversity), pointed out that the budget has very few well-chosen missions and looked at issues of unemployment. He lauded the Finance Ministry for being prudent with its budget to keep the fiscal deficit intact.
Professor Pooja Misra, (Professor of Economics, Area Chair–Economics & IB, Birla Institute of Management Technology), emphasised the need to check our unemployment rates. She urged the government to provide Employment Linked Incentive schemes to formalize the labour force and to also work along the lines of PLI (Production Linked Incentive) scheme. She, like the previous speakers, highlighted the need for execution at the ground level. She further suggested for Petrol and Diesel to be put under the GST ambit to provide relief to the masses.
After the Q&A session, Professor Banik wrapped up by taking closing remarks from the speakers. The speakers talked about land and labor reforms that need to be implemented by the government at the ground level to be more inclusive during our journey towards Viksit Bharat. They added that our system needs to be well-equipped to manage a developed economy when we get there. The panel unanimously discussed that while the road to Viksit Bharat@2047 might be a challenging one, our economy has the potential to realize this dream and is on the right track towards it. Professor Banik thanked all the panelists for their valuable contributions, and the host concluded the event with a vote of thanks.
Acknowledgement: Written by Sarah Ansari, Research Intern at IMPRI.
Read more Event Reports here: Employment, Livelihoods, and Union Budget 2024-25
