Kamal Bali, President & MD, Volvo Group, India on the Union Budget

“A progressive, thoughtful, imaginative, and growth-oriented budget that touches all socio-economic segments, while embracing technology & modern tools of governance. The budget has rightly allocated the highest ever Capex of 100 billion dollars (Rs 7.5 lac crore), up 34% over the last year, aimed at creating & improving our logistics infrastructure through PM Gati Shakti NMP, as well as social sectors of health, education, women, housing and the needs of our 112 aspirational districts. This, while following the agreed pathway on the fiscal deficit (4.5% by FY 25-26).

Focus on logistics will help solve supply-side challenges and curb structural inflationary challenges. Public transport, urban infrastructure push, and inter-operable battery swapping policy are big positives. Extension of ECLGS credit guarantee to MSME and hospitality sectors is a welcome step. Great to hear the mention of sustainable solutions in public procurement policy with due credence to clean & green tech, quality, and cost (instead of simply L1 approach). The Capex of 7.5 lac crore (if implemented with speed) will have a huge multiplier effect on jobs and will further kick in a virtuous cycle of consumption growth. Finally, the digital rupee is in the right direction. Thankfully, no major negative surprises in this purposeful budget.”