The government indicated that it will do the heavy lifting to drive capex, in the absence of private sector capex. It announced tax reliefs and benefits for small businesses, all aimed at driving inclusive growth. But the biggest challenge will be global economic headwinds, with a recession looming
Finance Minister Nirmala Sitharaman presented a frills- and surprise-free Budget for FY24, aimed at driving economic growth in a global scenario, where a recession looms large for most large economies. India, in that backdrop, appears well placed, compared to Western economies, with the country estimated to grow at 6.8 to 7 percent for the 12 months ending March 2023.
Sitharaman used all the right buzzwords to revive investor confidence: Including a higher government capex allocation of Rs10 lakh crore, sops for small businesses through a Rs9,000 crore corpus for a revamped Credit Guarantee Scheme, revamping income tax slabs for individuals and maintaining fiscal deficit prudence. For SME businesses, which are seen as a lifeline for the economy, through job creation, it is being seen as a big booster.