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WASHINGTON, Feb. 1 (PTI) Congratulated Union Finance Minister Nirmala Sitharaman on her proposals in the annual budget, a top US business advocacy group said on Wednesday, showing New Delhi’s continued commitment to productivity and job creation.
US India Business Council (USIBC) chairman Atul Keshap made these remarks after Sitharaman presented the 2023-24 Union Budget in the Lok Sabha on Wednesday, becoming the sixth minister to submit five consecutive budgets after India’s independence.
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“Taken together, these initiatives demonstrate India’s continued commitment to boost productivity, create jobs, and leverage projected growth of over 6 per cent to further integrate into a highly trusted and resilient supply chain,” Keshap said.
In a statement, Keshap said it was vital that, to achieve these goals, the budget contained effective tools and key outcomes such as increased use of digital technology, enhanced public consultation in the regulatory process and climate-sensitive development.
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On top of similar growth last year, the announced 33% increase in capital spending helped drive growth, create jobs and largely boost productivity. How and when the money is spent, and the speed at which the project is executed, are critical to maximizing its impact, he said.
“We see huge potential for enhanced logistics and regional connectivity in our plans for 100 key transport projects and 50 aviation-related facilities. Likewise, spending earmarked for India’s energy transition, net-zero goals and energy storage will help sustainable growth in India and address issues related to 24-hour power supply,” Keshap said.
Appreciating the new steps to realize India’s aspirations as a global export hub, he said reduction of basic tariff rates on goods, exemption of inputs from the auto sector and correction of the inverted tariff structure were important measures.
“Combined with reforms to simplify the indirect tax structure, remove criminal liability for non-compliance in this and other areas, and lower compliance requirements, these moves could make India a more attractive place to do business and enhance its global competitiveness ,”He said.
Creating a level playing field for tax and regulatory frameworks in the banking and insurance industries, as well as promoting more efficient tax administration and dispute resolution processes, can help support these goals by increasing access to capital, risk management products and foreign direct investment ,” Keshap said.
On the digital economy, he said, the new AI Center of Excellence and 5G Lab could be a major boost for US-India corridor cooperation, capitalizing on the key and emerging technology initiatives both countries launched here on Tuesday.
“New national data governance policies that allow access to anonymized public data can unlock significant innovation, provided that data is made available to all companies doing business in India. The history of the United Payments Interface (UPI) shows that multinational corporations are similar digital public goods in India.” important driver of return on investment,” he said.
Measures to strengthen innovation in the life sciences are also promising, he said, saying a proposed multidisciplinary curriculum for medical devices could help boost human capital in product development, manufacturing and regulation. Research-related incentive schemes, similar to the government’s production-related incentive schemes, could also help India’s global standing in the field, he said.
“For financial services, we see great potential in several proposals. Simplification of the know-your-customer process and a national financial information registry could increase financial access, especially if the registry draws on the expertise of private players and alternative data,” Keshap said.
Delivering on the Treasurer’s commitment to public consultation in the development of industry regulations will reduce risk, increase efficiency and boost foreign investor confidence, provided the approach is transparent, predictable and consistent. Extending this commitment to the regulatory process across all sectors would constitute a sea change and help increase foreign investment, he said.
Meanwhile, a prominent venture capitalist said the annual budget would bring in more foreign direct investment, benefit the country’s thriving tech start-ups and help create jobs.
“We expect the budget to deliver significant benefits in terms of job creation and enhancing the country’s technological and manufacturing competitiveness, one of the key drivers of India’s $5 trillion economic goal,” said Managing Partner of a leading US venture fund Arun Kumar said, Celesta Capital said.
Indian tech start-ups will benefit from government-initiated investments in AI centers of excellence, establishment of 5G development labs, increased investment in research in priority areas and a strong focus on green growth and energy transition, Kumar said.
Kumar has more than 40 years of experience in various fields including technology, financial services and government, and was Chairman and CEO of KPMG India for five years, and is a member of KPMG Global Board, as well as its EMA board.
Previously, he served as Assistant Secretary of Commerce for Global Markets and Director of the U.S. Foreign Business Service in President Obama’s administration, where he led a team of 1,700 professionals in 78 countries as the administration’s chief official team.
“The Government of India’s Agriculture Accelerator Fund will encourage agritech start-ups from entrepreneurs in rural areas to advance innovative solutions for farmers based on technologies such as artificial intelligence, machine learning, Internet of Things and augmented reality/virtual reality,” said Kumar.
Kumar believes that a substantial increase in capital expenditure on infrastructure, especially transportation and logistics, will enhance the country’s competitiveness as a major manufacturing node in global supply chains.
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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