Increased infra spend to have multiplier effect says Tata Steel MD

“The continued expansion of rural housing and other significant moves will spur steel demand, create jobs, and improve connectivity and logistics”

February 02, 2024 06:56 am | Updated 06:56 am IST - MUMBAI

The announcement to increase the capital expenditure on infrastructure would have a multiplier effect on the nation’s overall economy, said Narendran, CEO and MD, of Tata Steel in his reaction to the interim budget which was presented by Finance Minister Nirmala Sitharaman on Thursday. 

“The continued expansion of rural housing along with the proposal to develop three economic railway corridors under the PM Gati Shakti Yojana are other significant moves that will spur steel demand, create jobs, and improve connectivity and logistics.”

Falguni Nayar, Founder and CEO of Nykaa said, “Finance Minister’s budget reflects a holistic approach, strategically combining support for innovation, youth and women empowerment, and MSME growth. It sets a promising tone for India’s economic future, underscoring both resilience and inclusivity.”

According to Rajesh Sinha, Senior Research Analyst, Bonanza Portfolio the Budget which has reduced the fiscal deficit target at 5.1% of GDP for FY25 has the potential for lower interest rates due to a larger-than-anticipated decrease in fiscal deficit, enhancing the overall macroeconomic stability. 

“Also, gross market borrowing for FY25 Rs. 14.13 lakh crore and net market borrowing at Rs 11.75 lakh crore would be a positive for public sector banks.”

Gem & Jewellery Export Promotion Council (GJEPC) while welcoming the announcements said of the increase outlay of Rs. 11.11 lakh crore announced by the FM, some funds should be allocated towards modern infrastructure such as Jewellery Parks for boosting gem & jewellery exports from India.

“As over 80% of gem & jewellery industry are MSMEs, we urge FM to include Government schemes for Gems and Jewellery that will help the sector compete globally, including the skilling and training for MSMEs,” said Vipul Shah, Chairman, GJEPC.

Yogesh Mudras, Managing Director, Informa Markets India said the food sector would witnesses a transformative stride, post budget. “Empowering 11.8 crore farmers with direct financial assistance through PM-KISAN and providing crop insurance to 4 crore farmers under PM Fasal Bima Yojana underscore a strong commitment to agriculture.”

Mukund Kulkarni, CEO, Pepper Advantage India said the Fintech and BFSI sector would benefit from this budget. “The comprehensive development of physical, digital, and social infrastructure, coupled with the promotion of Digital Public Infrastructure (DPI), is deemed crucial for formalization and financial inclusion.”

Ashishkumar Chauhan, MD & CEO, National Stock Exchange said the focus on capacity building through higher spending on hard as well as soft infrastructure and consequently facilitating job creation has continued.

“At the same time, the budget provides enough for poor, farmers, women, and youth, which in turn bodes well for the overall economic growth, thereby keeping us in a good stead in an otherwise uncertain world. At 5.8%, the revised fiscal deficit for FY23-24 is an improvement from the budget estimate by 10bps. Fiscal consolidation continues to be the front and centre, with the fiscal deficit for FY24-25 brought down to 5.1%, bettering expectations and a commitment of a sub-4.5% target by FY25-26, he said.

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