Leading up to the budget we had made key Industry recommendations, especially since we are just beginning to come out of a very difficult time due to the pandemic.
It is thus heartening to note that the two key areas which needed strong focus in the budget have been given the impetus. These being Infrastructure development and Health care. The outlay for the Ministry of Road Transport and Highways is the highest ever this year. The capital expenditure allocation for FY 2021–2022 is also much greater than the previous years.
Encouragingly Railways is set to emerge as a growth driver in addition to Roads and Highways, which was long overdue. A record allocation for Railway Corridors and other Structural Developments has been made. This will certainly help in generating on ground activity in the sector.
With the formation of a Development Finance Institute (DFI), the stress in Capital Requirements for long-term infrastructure projects should significantly ease out. This was critical to infrastructure development. The Government has shown a strong intent towards generating funds by proposing a Privatisation drive and Monetisation of assets. Another positive in the budget announcement is focus on Hydrogen Energy and the aim to create an ecosystem for Alternative Fuels.
These are welcome steps towards the vision of creating an Aatmanirbhar Bharat. Infrastructure development has a multiplier effect in the creation of jobs and livelihoods. We feel that the budget will support the National Infrastructure Pipeline (NIP) and other Large Scale Infrastructure projects, thus creating more opportunities for Construction Equipment Manufacturers.“ By Mr. Deepak Shetty, CEO & Managing Director, JCB India Limited