Budget 2024: Sanjiv Puri Praises Schemes to Boost Economy and Growth

Interview with Sanjiv Puri, President of CII and CMD of ITC

Interviewer: How would you rate the budget on a scale of one to five?

Sanjiv Puri: I don’t have a specific rating system, but I think the budget is commendable. It addresses investments needed for inclusive growth and takes a holistic approach to issues like climate change, energy transition, and natural resources. It also meets the fiscal consolidation targets and focuses on economic transformation, ease of doing business, and reforms at the state level. Overall, there are many positives, and these schemes will boost the economy over time.

Interviewer: What are your thoughts on the changes in capital gains taxes and their impact on capital markets?

Sanjiv Puri: I’m not a capital market expert, but from a business perspective, capital should flow where it can grow based on strong fundamentals. I don’t think these tax changes will affect the fundamentals. Capital will still go to competitive businesses with strong models.

Interviewer: What do you think about the government’s push towards urban housing and its impact on the economy?

Sanjiv Puri: The budget is commendable for focusing on investment-led growth. Investments in housing, especially for the poor, have a multiplier effect by creating jobs and boosting consumption. The focus on rural and agricultural infrastructure is also significant. These investments will improve the productive capacity of both urban and rural economies.

Interviewer: The total expenditure as a percentage of GDP remains the same. Do you think it should have been increased?

Sanjiv Puri: Compared to last year’s estimates, there is a 15-16% increase, which is a fair increase. The focus on infrastructure investments continues, which is positive. CII had also recommended more focus on skilling and employment-linked schemes, which are addressed in this budget. Initiatives like internships with top companies and support for MSMEs are strong steps that will strengthen the economy over time.