To spur growth, an infrastructure plan needs to be implemented and the announcements of the Union Budget 2022-2023 brings the much-needed fillip in this direction. The implementation of the PM Gati Shakti scheme will have an impact on other aligned sectors such as renewable energy and the ICT, as well as reduce the pressure of congestion in urban centers and give impetus for the growth of tourism.
Similarly, the expansion of the National Highway Network by 25,000 km in 2022-2023 is essential to fuel the growth. Other major developments such as creating efficient logistics by the railways will be the driving force for small farmers and enterprises.
The labor-intensive Indian real estate sector holds the potential to contribute to at least 15% of the GDP growth, which includes employment generation and a multiplier effect on 270 allied industries. Over Rs 60,000 crore have been allocated to provide tap water to, at least, 3.83 crore households pointing towards the betterment of ease of living standards.
While all the optimistic measures affirm fulfilling the goal of affordable housing for all, it will also bring in job creation opportunities and contribute towards a better pie of GDP. It will enable sustained growth in the economy.
Logistics and warehousing will be a new buoyant sector of the Indian economy and has been witnessing rapid growth post Covid disruptions. There is a significant growth potential for trade in general with improved logistics infrastructure. As a part of Atmanirbhar Bharat, 2,000 kilometres of the rail network will be brought under the indigenous world-class technology KAWACH, which is a gift to the Indian Railways.
The announcement of four multi-modal national parks contracts, which will be awarded in FY 23, is a much-needed step for a growing economy like India. This will allow for the efficient movement of goods via various modes, lowering logistics costs and time, assisting with just-in-time inventory management, and eliminating time-consuming documentation.
Thus, the prospects of growth look greater with the Union Budget 2022-23, the announcements of packages in various sectors have put light on the path that the nation will traverse. With major announcements in sectors such as infrastructure, real estate, and logistics which are the main drivers of growth in the economy, the goal of achieving a $5-trillion economy seems closer.