Union Budget 2022: Transportation and Multi-sector Development
The past two decades have observed a huge transformation in the transport infrastructure in India. While initially focused on railways, the Indian economy has acknowledged the various benefits multi-modal connectivity presents in terms of economic growth and social empowerment. The pandemic years have seen an unabated growth in the roads and highways sector as India constructed over 13,505 kilometers long national highways in 2021 and waits to reap the monetary benefits the National Monetization Pipeline (NMP) is to produce from FY2022-25.
Transport connectivity is envisioned to cater to many developmental challenges and smoothen supply chain network for the Agricultural sector, logistics sector, tech industry and many more. To further this goal, Hon’ble FM Nirmala Sitaraman on February 2, 2022 spoke about the PM Gati Shakti National Master Plan which will accelerate economic growth and sustainable development by building a strong network of transportation system in the roadways, railways, airports, maritime, waterways, mass transport and in the logistics infrastructure. One of the main sectors which will be majorly benefitted from these upgrades will be agriculture. The Budget 2022 is largely focused on providing opportunities for higher economic growth, and with the “One Station, One Product” scheme, small farmers will have the opportunity to set up local supply chains and benefit from them in an efficient manner. Secondly, with the modernization of transport infrastructure, manufacturing and logistics will witness a boost and as a result, increase competitiveness in the Import and Export industries leading to generation of more jobs and provide higher potential for economic growth. While another sector which will see large gains will be the large gains will be the tech industry as Budget 2022 aims to bring about 20,000 km under world class technology under the KAWACH initiative. The tech industry along with transport is extremely significant in ensuring smoother movement and in enhancing logistic efficiency, as for example the adoption of FASTag has resulted in making the toll collection process much quicker and smoother. Moreover, opportunities for small and medium enterprises and local business will also boost as Budget 2022 talks about construction of road networks in hilly areas under “Parwatmala” which will increases access and connectivity for people living in the secluded regions and give them an opportunity to be part of India’s economic growth.
The budget promises exceptional growth prospects for the transportation industry in 2022 and in turn for building logistics and infrastructure to support other industries which will provide a massive multiplier effect on the emerging Indian economy.
This blog has been authored by Bhamini Rathore.