Figure to remember: expect multiplier effect of rupees 10L cr capex

The budget has been crafted in a backdrop of global uncertainties and slowing growth rates. On the other hand, the economy remains resilient, with growth rate at about 7%, financial stability, robust tax collections, deleveraged private sector balance sheets and a well-capitalised banking sector. It was a budget presented by a confident finance minister to a country brimming with hope and optimism.

The figure that will be most quoted and remembered will be the ₹10 lakh crore capex. This is a 33% increase over last year and a 4x increase over FY16. Capex has a multiplier effect on the economy and will crowd in private sector investments.

The fiscal deficit glide path has been maintained with FY24 deficit at 5.9%, a reduction from 6.4% this year. This builds credibility and will ensure the borrowing costs of the country do not shoot up.


The government continues its thrust on supporting the rural economy by maintaining total outlay towards rural development and the ministry of agriculture.

Building on the support provided to MSMEs over the last few years, the government has announced a revamp of the scheme and infusion of ₹9,000 crore to the corpus, which will enable additional collateral-free credit. This, together with 1% reduction in interest rates, will be a shot in the arm for MSMEs. The budget also lays a huge emphasis on green growth and sustainability across sectors. Capital allocation of ₹35,000 crore towards energy transition, as well as the green credit programme, are positive steps towards sustainable growth.

India needs to go up the innovation chain. This will happen when the government and private research and development, academia, startups and venture capitalists come together to create ecosystems.

Crafting a budget is a science and an art; it must look at short term and long term, it must meet the aspirations of different sectors, ensure that the fundamentals of the economy keep getting strengthened but not fall prey to populism. My kudos to the finance minister for doing a great job.

The author is the CEO of Hindustan Unilever.