Press Release
Geetam Acharya
Center for the Study of Finance and Economics (CSFE), Generation Alpha Data Center (GenAlpha DC2 IMPRI Impact and Policy Research Institute, New Delhi, hosted an interactive panel discussion on the topic of New India’s Economic Transformation and Union Budget 2024-25. On 26th July 2024, under the IMPRI 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25, as part of IMPRI #WebPolicy Talk
The budget panel discussion was chaired by Prof Mukul Asher, Visiting Distinguished Professor, IMPRI; Former Professor, Lee Kuan Yew School of Public Policy, National University of Singapore (NUS).To start, Prof. Asher provided an overview of the budget, lamenting how comprehensive National Power (CNP) extends beyond GDP, incorporating economic prospects, technological resilience, and internal stability. He highlights how the budget aims to enhance these aspects through strategic allocations and fiscal consolidation.
He highlights how the budget emphasizes enhancing urban development and energy security, including investments in nuclear power and renewable infrastructure. This approach addresses future urbanization challenges in India.
The first Panelist, Dr Radhika Pandey, Associate Professor, National Institute of Public Finance and Policy (NIPFP), New Delhi; Visiting Senior Fellow, IMPRI, begins her discussion by arguing that the government’s fiscal policy is shifting focus from a single fiscal deficit target to reducing the debt-to-GDP ratio over the coming years. This change aims to enhance transparency and attract foreign investment while ensuring responsible fiscal management. She highlights a trend of increasing capital expenditure, with the government planning to boost spending to stimulate economic growth. She She emphasized the government’s financial strategies indicating a cautious approach to disinvestment and capital expenditure, focusing on reducing reliance on subsidies and improving fiscal health.
Prof A Amarender Reddy, Joint Director, School of Crop Health Policy Support Research (SCHPSR), ICAR-National Institute of Biotic Stress Management (NIBSM), Raipur; Visiting Senior Fellow, IMPRI, emphasized how the Indian government aims to revamp agriculture by encouraging private sector involvement and addressing regional disparities in farming outcomes. He argues that Emphasis on digital infrastructure and climate-resilient technologies is crucial for improving the agricultural sector in India. However, he acknowledged that challenges remain in implementing these advancements effectively at the grassroots level.
Prof Prabir De, Professor, Research and Information Systems for Developing Countries (RIS), New Delhi, informs that India’s budget aims to boost the GDP from 3.5 trillion to 30 trillion dollars by 2047, necessitating a consistent annual growth rate of 10%. Key factors include improving infrastructure and increasing trade openness to achieve these ambitious economic goals. The shift towards a service-driven economy is emphasized, predicting that 60-80% of GDP will come from services by 2047. This requires rapid technological transformation and a focus on export quality.
He lamented that India’s trade strategy is shifting focus towards quality and diversification to enhance exports and facilitate international trade. He argues that the recent budget emphasizes support for exporters through infrastructure development and trade facilitation, aiming to enhance India’s global trade connections and economic growth. This approach includes targeted assistance for MSMEs and the promotion of digital trade processes.
The discussion focuses on the need for tax rationalization and simplification to increase the tax-to-GDP ratio. This is crucial for enhancing government revenues and supporting economic growth. The panel discussion on India’s economic transformation and the Union Budget 2024-25 emphasized the importance of enhancing trade facilitation, infrastructure development, and digitalization to achieve ambitious economic goals by 2047.
Experts highlighted the need for tax rationalization, addressing inverted duty structures, and focusing on targeted welfare measures rather than universal income transfers. They discussed strategies to manage food inflation through improved agricultural productivity and supply chain management, while also stressing the significance of consumer education on economic principles. The seminar facilitated valuable insights into the complexities of the budget, underscoring the necessity for ongoing expert discussions to navigate India’s economic policies effectively.
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
Watch the event at IMPRI #Web Policy Talk
New India’s Economic Transformation and Union Budget 2024-25
Acknowledgement- This article was written by Geetam Acharya, a Research Intern at IMPRI and an undergraduate student at Sri Venkateswara College, University of Delhi with a keen interest in Political Science and International Relations.
