New Delhi [India], February 1 : India's former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant on Sunday highlighted how the Union Budget is "very responsible and fiscally prudent," saying it strikes the right balance between fiscal consolidation and long-term growth at a time of complex global geopolitics and disrupted supply chains.
While speaking with ANI, Kant said, "We are in very complex geopolitics. There is a breakdown of global supply chains and disruption worldwide. Amid this, the Union Budget is fiscally prudent and very responsible."
Addressing concerns around foreign portfolio investment outflows and stock market volatility, Kant downplayed short-term worries, attributing recent movements to a strengthening US dollar.
"India's focus should remain on achieving 8-9% economic growth over the next three decades, rather than being overly concerned with stock market fluctuations. Our vision should be growth and development, not merely the stock market," he said, calling for clarity of purpose and long-term policy consistency.
Kant said the budget prioritises manufacturing, infrastructure, and cutting-edge technologies, enabling India to "technologically leapfrog" in key areas. He termed the 22-year tax exemption for data centres as one of the smartest measures in the budget, noting that it could make India a major global hub for artificial intelligence, cloud infrastructure, and high-end computing power.
On industrial policy, Kant stressed the importance of not just extracting but processing critical minerals.
"The four corridors which are being announced in Kerala, Orissa, Tamil Nadu, Andhra Pradesh should lead not merely for the availability of critical minerals, but for processing," he said.
"China is a champion because it processes critical minerals and then sells finished products. India must develop processing skills and manufacture for both domestic use and exports," he noted.
Kant also underscored the role of cities as regional growth drivers, linking infrastructure development with urbanisation. "High-speed rail and improved connectivity would lead to transport-led urbanisation, helping move people from agriculture into better-paying jobs in cities and urban centres, thereby supporting smart and sustainable urban growth," he said.
He also pointed out the targeted support for sectors impacted by global trade disruptions and US tariffs, including marine products, textiles, footwear, and labour-intensive industries.
"The finance minister has consciously addressed these vulnerabilities while keeping job creation at the centre of the policy framework. Tourism, another labour-intensive sector, received special mention which can provide a significant boost to employment and economic growth," he said.
Kant added that the budget draws inspiration from the interactions between Prime Minister Narendra Modi and India's youth, with a strong focus on employment generation through MSMEs.
"There is a major emphasis on MSMEs," Kant said, citing initiatives such as a growth fund and improved credit flow mechanisms, including support through TReDS, to enhance liquidity and spur job creation.