CII Chief Calls For Rural Infrastructure Push In Upcoming Budget
Date
6/17/2024 2:46:00 PM
(MENAFN- KNN India)
New Delhi, Jun 17 (KNN) Sanjiv Puri, President, Confederation of Indian industry (CII), has urged the Modi 3.0 government to allocate a significant portion of the incremental expenditure for 2024-25 towards developing rural infrastructure in the forthcoming budget. This strategic approach, according to Puri, would help boost consumption in rural India.
Puri suggested utilising a portion of the Rs 2.1 lakh crore dividend from the Reserve bank of India (RBI) for capital expenditure (capex) in rural areas, as reported by Businessline.
He highlighted potential investment avenues such as rural housing, agricultural infrastructure, warehousing, and digital infrastructure.
Puri advocated for measures to create a vibrant and thriving rural economy, citing India's aspirational society and the youth's concern for sustainable income.
His recommendation comes amid expectations of a rural and consumption-focused budget, aiming to address weak consumption and distress in several rural regions, as reflected in recent election outcomes.
The CII has called for a 25 per cent increase in capex allocation in the full budget over the Revised Estimate of 2023-24, compared to the 16.8 percent increase in the interim budget.
Additionally, Puri suggested extending the PMSVANIDHI scheme to rural areas and framing special schemes akin to MNREGA for the urban poor.
While acknowledging the temptation for populist measures given recent election results, Puri emphasised the need for the Centre to adhere to its earlier announced fiscal consolidation glide path, targeting a 5.1 percent fiscal deficit by March 2025.
Expressing confidence in the government's development-oriented approach, Puri stated, "I am not expecting a big shift in policy. The fact of the matter is that policies of the past have worked well for us, and that is why GDP has done what it has. It is a process. It is a policy framework that has worked. That is what makes CII optimistic about the future. I see really no reason to change tracks in a big way here."
(KNN Bureau)
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