“We welcome the progressive and growth-oriented Union Budget presented by the Finance Minister for 2022-23. India is poised to regain its title of the fastest-growing large economy with a 9.2% GDP growth estimated for the coming year. With an enhanced capital expenditure outlay of 35% as compared to last year, core infrastructure segments including Railways and Urban Transport stand to benefit and will have a huge multiplier effect on the economy.
Highlight of the budget was the announcement to introduce 400 new Vande Bharat trains over the next three years, introduction of the state-of-the-art KAVACH TCAS signalling systems over 2000 kms of railway network, larger investments to provide for sustainable and integrated urban transport systems. The total budget estimates of Rs 23,875 crore for MRTS & Metro Projects will incentivise faster implementation of projects and the standardisation of metro design systems will provide the much-needed stability for manufacturers.
The development of 100 Cargo terminals over the next 3 years will also improve India’s competitiveness in faster and cleaner logistics and freight movement by rail. The announcement of a new legislation regarding Special Economic Zones is a welcome step as it will help India enhance the competitiveness of its exports and integrate successfully with global supply chains.
From a policy standpoint, launch of the next phase of Ease of Doing Business (EoDB 2.0), is a step in the right direction. Modernized rules for evaluation of complex tenders especially transparent quality criteria and provisions for payment of 75% of running bills mandatorily within 10 days will encourage faster dispute resolution.
Introducing PLI scheme for railway manufacturers and exporters promoting Make-in-India would have been ideal for fast-tracking the implementation of projects and supporting the manufacturing ecosystem. We were anticipating FM’s announcement regarding plans for the private train operations; however, this budget provides the overall push towards economic growth and addresses the key priorities of the Government.”
