New Delhi: Industry bodies have hailed Union Budget 2022 as a driver of long term growth, stating that higher allocation of capital expenditure will have a multiplier effect on the economy. Sanjiv Mehta, President, FICCI, said: “We compliment Finance Minister Nirmala Sitharaman for presenting a forward-looking and growth-oriented budget that strengthens the drivers of long-term development. It builds on last year’s budget and scores high on several counts – consistency, capex led growth, transparency in numbers, energizing many of the stressed sectors and continuing the focus on simplifying the taxation policy.”

“The much higher allocation for capital expenditure will have a multiplier effect on the economy and help in sustaining the higher pace of growth. Higher investments in the core sectors will lead to greater demand across industries, push up the capacity utilisation rates and consequential private capex, create more jobs and through higher incomes reinforce greater consumption and demand. This is the virtuous cycle of growth we need, and the budget has clearly delivered on preparing the economy for the same,” he said.

“The Union Budget is growth-oriented, expansionary and has clearly indicated the government’s focus on sustainable growth through enhanced capital expenditure,” said Abhimanyu Munjal, Chairman, CII Northern Region. “At CII, we appreciate the fine balancing done to soothe the economy as well as boost it by way of increased capital expenditure, focus on creating physical infrastructure, healthcare spending and sustainable development,” he added.  

Appreciating the Union Budget, AS Mittal, Chairman, ASSOCHAM Northern Council, said: “The budget is focused on making India Atma Nirbhar and a 5 trillion US dollar economy in coming years. It is a landmark budget with a far-reaching positive impact towards the revival of the economy and to usher in the dawn of a new era.”

D  Ashok Khanna, former President, PHD Chamber, welcomed the budget proposals that lay emphasis on digitalization and technology. He stated that the budget was growth oriented as it laid down a roadmap for the next 3-5 years. He added that the focus on infrastructure, especially housing and construction, were positive measures that would give a boost to the economy.  He also stated that 68% of the capital procurement budget in Defence being earmarked for domestic industry will provide impetus to the industrial development in the country. /BI/