The Union Budget presented by Finance Minister Arun Jaitley this year is an honest attempt at setting our economy right. With the government pushing for digitization, this budget is a very good attempt towards attaining this goal.
It will help the country in the long run as we have a very youthful population with more than 65 per cent below the age of 35. With its huge working population, India can now set to achieve what it could not in the past 65-70 years. Every month nearly 2 million people join the work force.
For the past 60-65 years the country's economy was heavily dependent on cash and it was the main instrument to carry out day-to-day transactions. The government's push towards digital economy will bring in more accountability and transparency, which will also boost the government's coffers. People will also be prudent about spending. This will also boost tax compliance and probity. Since November 8, when Rs 500 and Rs 1,000 ceased to be legal tender, more than 18 lakh people got income tax notices with regard to the money deposited in banks. Such a thing was unthinkable in the past. This will mean more money for the government to spend.
In addition, the push towards digitisation has eradicated 30 per cent of the shadow economy. To achieve more transparency in our financial dealings, we are going to face a lot more challenges in the next few months. The biggest one is implementing Goods and Services Tax (GST) in the next six months. This concept has been tried and tested in about 150 countries.
People have to take responsibility for running their businesses in a transparent manner. That is now going to be the mantra. The GDP will definitely grow by more than two percentage points by the end of March 2018. Coming to infrastructure, building roads, ports and airports is enough, we should also ensure internet connectivity across the country. Only then the push for digitization would provide tangible results. The Government's drive for electrification of all villages in the country by 2020 will also help in making digital India a reality.
Aadhaar card is a very good concept and I am happy that it now covers a substantial section of the country's population. I also understand that the country needs to increase its banking footprint, especially in rural areas. Government should also convert post offices in villages to function as banks. The budget has also provided a push for railway infrastructure and real estate by providing housing benefits for people from economically weaker section.
It also has many incentives for Micro, Small and Medium Enterprises (MSMEs). Currently none of the MSMEs have their own R&D centres and have to depend on bigger companies. They can used the tax benefits provided in the budge to upgrade technology at their facilities. As for agriculture the Centre has made an earnest attempt to treat it as an industry. Agriculture is suffering because of mass migration of people to urban areas.
Widespread and easy internet connectivity in will help in reversing this trend. In fact it can be a game changer in boosting their businesses and help them avail various services. People would then prefer to stay back in villages and small towns, and not migrate to big cities. The government's move to set up 100 new skill centres will benefit rural areas. The move to introduce foreign languages at these centres is a step in the right direction. It will help young people move to foreign shores to boost their skills and careers.
The recent move by the Donald Trump administration in the United States to curb the issue of H1B visas would benefit India in the long run. This will curb brain drain and help the country retain talented people and this will boost the country's development. Hence the Union budget is a good attempt to kick start growth and will benefit India in the long run.
The writer is President, FKCCI.
