The Modi government has targeted to make India a developing country from developing country by 2047. To make this dream come to Delhi, we should try to maintain fast inclusive growth. You look at agriculture, industry and infrastructure … Fast intensive growth is visible. Policy reform or structural reform is also necessary to maintain fast intensive growth. The biggest example of this is the New Income Tax Bill. Finance Minister Nirmala Sitharaman is going to introduce this bill in the Lok Sabha next week.
Tax reform means relief in income tax. This will increase the short term consumption significantly. Within the next 6 months or a year, the effect of the tax reform bill will start appearing, which will last year. Similarly, there are many other reforms, which are good for growth.
The second thing is-insurance of skill education. The government has emphasized on innovation. It will have a positive effect. The effect of innovation will be seen in long term growth, job creation. The third thing is export and supply chain. How many things were announced. How will the labor of MSME’s labor intensive export to be created, so that more employment is generated.
The consumption survey came last year. Due to this, the poverty rate has been reduced by 2%. If the subsidy is counted, then poverty is over. Now we can see these people like lower middle class. Of course it has vulnerability. This was mentioned by PM Modi before the budget. Now our focus should go to lower middle class. The government has indicated this by giving tax exemption.
Now let’s talk about inflation. Middle class salary has not increased so fast due to inflation. The actual wages have increased less. The tax is on the nominal veg. In such a situation, we needed an inflation adjustment, so that it would reduce the effect on real income. Because the consumption GDP ratio was reduced due to Kovid epidemic. Recovery has started in the last 12-18 months. It is expected that this will increase the consumption ratio. Its effect will be positive. Growth will increase.
This budget will reduce the cost with regulation or controlled efforts. There will be growth of small and micro industries. More employment opportunities will be created than this. There will also be skills development. Quality education will be available. If productivity is to be increased, then skill level should also be increased. If there will be skill development with quality education, then it will get a job and also a good salary. Finally talk of labor intensive. It needs to be connected with imports and supply chains.