This article will delve into the recent Union Budget presented by India’s Minister of Finance for the year 2022-23. The budget has prioritised areas such as enhancing productivity, boosting investment, and accelerating energy transition and climate action, with a strong thrust on improving the ease of living and ease of doing business.
The Drive for Ease of Living and Doing Business
Over the recent years, a concerted effort has led to a reduction of over 25,000 compliances and repeal of 1,486 union laws, translating to the ethos of ‘minimum government & maximum governance’. In alignment with this vision, the next phase, termed EODB 2.0 and Ease of Living, is being launched.
EODB 2.0 will feature digitisation of manual procedures, integration of central and state systems via IT bridges, single-point access for all citizen services, and the standardisation and removal of duplicative compliance requirements. This initiative is underpinned by the principle of ‘trust-based governance’.
Green Clearances and e-Passports
The government plans to expand the use of the PARIVESH portal, initially launched in 2018, which serves as a single window for all environmentally-related clearances. Moreover, e-passports featuring an embedded chip and advanced technology will also be rolled out.
Revamping Urban Development and Land Management
The budget proposes the formation of a committee comprising reputed urban planners, economists and institutions to recommend on urban sector policies, capacity building, and governance. Furthermore, modernization of construction bye-laws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented. Measures such as battery swapping policy for setting up charging stations and Unique Land Parcel Identification Number for IT-based land record management are also being introduced.
Moving towards Cross Border Insolvency Resolution
The budget proposes amendments in the Insolvency and Bankruptcy Code to facilitate cross-border insolvency resolution. Furthermore, to expedite the voluntary winding-up process of companies, the Center for Processing Accelerated Corporate Exit (C-PACE) will be set up to reduce the processing time.
Enhancing Transparency in Government Procurement
To enhance transparency and reduce payment delays, a completely online e-Bill System will be made available for all central ministries for their procurements. This digital initiative is expected to boost efficiency in government procurement processes.
Boosting AVGC and Telecom Sectors
The government plans to set up an Animation, Visual Effects, Gaming, and Comic (AVGC) promotion task force. In the telecom sector, a design-led manufacturing scheme for building a strong ecosystem for 5G is being planned.
Promotion of Defense AtmaNirbharta and Export
The budget sets aside 68% of the capital procurement budget for the domestic industry, a significant increase from the previous year’s 58%. Defense R&D will also be opened up for industry, startups and academia, with a provision of 25% of the defense R&D budget.
Embracing Sunrise Opportunities
Sectors like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its ecosystem, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems have been identified as having immense potential for sustainable development at large scale.
Budget’s Focus on Energy Transition and Climate Action
The budget has outlined strategies to promote a circular economy, transition to a carbon-neutral economy and boost solar power. Plans include an additional allocation for the production of high efficiency solar modules, introducing action plans for ten sectors to manage waste, co-firing biomass pellets in thermal power plants and financial support for farmers from Scheduled Castes and Scheduled Tribes who wish to take up agro-forestry.
