In a conversation with Aaj Tak about the central budget, Union Minister of Commerce and Industry, Piyush Goyal, elaborated on the government’s “Reform Express” agenda and major structural reforms. He emphasized the current government’s priority on large-scale economic reforms which are steering the country’s economy towards a new direction.
Piyush Goyal explained that the aim of the “Reform Express” is to promote investment in the nation, simplify business processes, and accelerate production.
Let's delve into the exclusive interaction with Piyush Goyal on Aaj Tak and what important points emerged.
Question:
You mentioned that this is a “Reform Express” budget. Could you elaborate on the significant big-ticket reforms?
Answer:
I would call this budget a future-ready budget for India. It is propelling India towards developing into a stronger economy by 2047. When we talk about reforms, it’s not just one or two but several levels of structural changes that will provide durable strength to the economy.
Question:
What special improvements have been made for the manufacturing sector in this budget?
Answer:
A well-thought-out strategy has been adopted to make manufacturing more competitive. Take the textile sector, for example. The textile value chain is currently scattered - with cotton production, yarn, fabric, and garmenting happening at different locations. To integrate these, PM MITRA Textile Parks were introduced and had been quite successful. Now, more textile parks, especially focused on man-made fiber, are being developed, as approximately two-thirds of the global textile market is composed of man-made fiber.
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Question:
What major decisions have been made for the MSME sector in the budget?
Answer:
A fund of INR 10,000 crores has been earmarked for the MSME sector to create champion MSMEs and enable them to scale up. A crucial reform is that when an MSME exports, its export turnover will not be counted in determining its MSME status. This is to encourage MSMEs to grow larger and expand in the global market.
Question:
What significant reforms are visible in the budget for the service sector?
Answer:
Safe harbor rules have been established for the IT and service sectors, easing regulations and simplifying exports. This will alleviate several daily hassles. Additionally, a service committee is being formed to strategize on how India can capture 10% of the international service sector market.
Question:
You also mentioned the prospect of FTAs with the European Union and service exports. How should this be understood?
Answer:
The 27 countries of the European Union import approximately 2.7 trillion dollars worth of services every year, about 250 lakh crores in rupees. India’s contribution is currently minimal. Presently, India exports services worth about 4.5 lakh crores of rupees, which is roughly 1.5% of this vast market. If we can scale this up to 25 lakh crores, imagine the employment opportunities it could generate for youth and women, especially in fields like cybersecurity.
Question:
What does this budget indicate regarding data centers and foreign investment?
Answer:
The government aims to establish world-class data centers in India. Foreign investment and capital will be attracted to develop infrastructure, creating jobs for millions, and since these centers operate on green energy, renewable resources such as solar, wind, hydro, battery storage, green hydrogen, and ammonia are expected to receive a boost.
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Question:
Earlier discussions revolved around the chemical sector. What’s new in this budget?
Answer:
There is enormous potential in the chemical industry. This budget proposes the establishment of three major chemical zones near ports. This will create employment for millions, reduce dependency on imports, and enable India to become a chemical export hub.
Question:
How would you define this budget overall?
Answer: This budget addresses the needs of various sectors simultaneously. The deeper you delve, the clearer its strategy and prospects become. It is not just for today but is setting the economic direction for India for the coming decades.
