“Global inflation, China’s economic slowdown, the pandemic’s aftereffects, and the conflict between Ukraine and Russia pose a great challenge for the Indian economy. Although there is wage-push inflation in core inflation, as this is only 25% of the basket and since commodities make up most of our inflation basket, and their prices are dropping globally, headline inflation is expected to be around 5%. The global slump poses difficulties for overall growth. Exports have fallen. Therefore growth must be prioritized. A larger budget deficit is acceptable, as long as the spending stimulates higher GDP growth. Spending on infrastructure has boosted growth, which has attracted private investment and promoted exports. Domestic development and the Gati-Shakti initiative will be very beneficial. The type of deficit should be our primary concern rather than the overall budget deficit. Any investment that fosters progress is appreciated. Subsidies should be cut, and direct transfers to the underprivileged should be made. There might be a temptation to interpret the budget as populist, and I hope that won’t happen. The Union Budget for 2023-2024 provides an excellent chance to invest in women’s empowerment. The government must increase its efforts in infrastructure, skill development, education, health care, financial inclusion, and other sectors critical to empower women. Investing in the workforce can help create jobs and raise women’s wages, ultimately leading to improved long term economic growth that benefits the bottom of the pyramid.”
