USIBC welcomes India’s pro-growth Interim Budget

USIBC president said the budget contained several notable programs and milestones that build on the momentum from previous years.

USIBC president welcomes India’s pro-growth Union Budget 2024-25 / Atul Keshap (X)

The president of the US-India Business Council (USIBC), Ambassador Atul Keshap, congratulated India's Finance Minister Nirmala Sitharaman and the Government of India on the successful presentation of the pro-growth Union Budget 2024-25.

Issuing a statement, the Ambassador said the budget contained several notable programs and milestones that build on the momentum from prior years. "There was a strategic focus on technology, green growth, and infrastructure, as well as a commitment to public health and macro-economic stability," he noted in the statement. 

"Combined, these are likely to contribute to India's prosperity through sustainable growth, increased productivity, reduced logistics costs and enhanced personal well-being. They also complement the major bilateral initiatives that are likely to drive cooperation between India and the United States this year, such as the Initiative on Critical and Emerging Technologies (iCET) and the Innovation Handshake,” he added.

The USIBC chief further commended the Indian government's continued commitment to developing India's semiconductor ecosystem and accelerating its deep tech sector through additional financial support and public-private partnerships. "Both position India to make an even stronger contribution to iCET," he pointed out.

Ambassador Keshap expressed keenness in learning more about the $12 billion commitment to long-term low or no-interest financing for 'sunrise sectors,' which has significant potential to enhance innovation.

"Sustainable growth is critical to ensuring that India's economic expansion supports individual well-being. We laud the vision of bringing clean energy generation and use to peoples' doorsteps through rooftop solar power for 10 million households as well as viability gap funding for one gigawatt of wind energy," he underlined.

Further, Ambassador Keshap regarded the promotion of green manufacturing of alternative materials through biomanufacturing and biofoundaries as a "step in the right direction." 

"These demand signals can help promote India's leadership of the green economy and integration into its global value chains. These initiatives, along with the 11 percent increase in capital expenditure-a real rupee increase on top of massive growth in prior years all examples of government outlays aimed at increasing job creation and productivity, especially to the extent the cape enhances transportation infrastructure and multi-modal connectivity, he explained. 

He highlighted that India's ongoing focus and execution on budget consolidation, including beating its fiscal deficit target for this past year, is key to maintaining and enhancing its credibility with foreign investors. "This is likely to have a net positive impact on the ultimate allocation that Indian sovereign bonds receive as they are incorporated into benchmark international indices in 2024, which, inturn, would deepen the country's capital markets and reduce public financing costs," he concluded.