‘Ecosystem led-growth’— the phrase aptly captures the Union Budget 2024. The Government presented a comprehensive vision of how India can unleash a holistic approach to achieve a ‘Viksit Bharat’ 2047.

We welcome the government’s forward-looking approach, especially its emphasis on infrastructure development. This budget echoes the government’s commitment to fostering economic growth and create a $5 trillion economy. The rise of India’s burgeoning middle-class is an economic phenomenon— the world’s youngest, most populous, most aspiring, and the biggest pursuers of a higher standard of living.

The commitment to maintaining a fiscal deficit target of 5.1 per cent speaks volumes about prudent financial management, ensuring a stable economic foundation for the country. The increase in the infrastructure capex outlay to 3.4 per cent of GDP is a highlight, which will go on to have a multiplier effect on economic development. The strategic focus on multi-modal connectivity, including new rail corridors, airport enhancements, and road infrastructure, provides more opportunities for businesses across sectors. This not only bolsters the logistics ecosystem but also creates new growth corridors, presenting opportunities for innovative commercial spaces.

The India-Middle East-Europe Economic Corridor (IMEC), first announced in October 2023 and reiterated during today’s Budget announcement, will play a significant role in strengthening India’s ties with the countries along this corridor. This initiative is poised to facilitate closer economic cooperation and collaboration between India, the Middle East, and Europe. One of the key benefits of IMEC will be its potential to attract offshoring work from companies based in these countries, akin to the current trend where Global Capability Centres (GCC) predominantly serve the US markets.

Furthermore, the extension of tax benefits for start-ups and investments by sovereign and pension funds until 2025, strengthens the government’s commitment to spurring private investments and giving a fillip to fledgling enterprises to grow into domestic giants. Indian businesses have been growing as is evident by their increasing share in the office space uptake in India. This move is poised to further help Indian businesses grow and become key consumers of office space, which augurs well for the demand of grade A commercial real estate.

The Finance Minister has also left no stone unturned in balancing the fiscal act while supporting India’s growth story. The government’s efforts to contain the fiscal deficit at 5.1 per cent of GDP in FY25 and at 4.5 per cent of GDP by FY26, will aid in bringing down yields on Government Securities, and eventually translate in lower cost of borrowings for capital market instruments.

At a time when complex geopolitics can easily blur economic foresight, the Government has presented a clear vision document that serves as a cornerstone to a ‘Viksit Bharat’ 2047.

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