Indian Economy News

Enhanced capital spending in the Budget will have 3-4 times multiplier effect on the economy: Union Minister Piyush Goyal

On February 5, 2022, Union Minister for Commerce & Industry, Textiles and Consumer Affairs, Food & Public Distribution Mr. Piyush Goyal stated that enhanced capital sending and demand stimulus will help india create more demand and job opportunites.

He stated that, the increased capital investment of Rs. 10.5 lakh crore (US$ 140.56 billion) in Budget 2022 is likely to have a 3-4 times multiplier effect on economic activity. “Capital expenditure has been raised by 35%, to more than Rs. 7.5 lakh crore (US$ 100.40 billion). Rs. 1 lakh crore (US$ 13.38 billion) is being given to states as interest-free 50-year loan to support funding of infra projects. Centre and states together, we are looking at Rs. 10.5 lakh crore (US$ 140.56 billion) of public spending.”
He said that the import figures were rising indicating an increase in demand. He further stated that this increase in demand will be further boosted by the increase in capital expenditure which will create several new job opportunities. He expects India’s economy to grow by 8% next year and hopes atleast two decades of growth. 
He said that the Prime Minister used a first-of-its-kind bottom-up strategy in collaboration with business and foreign missions in 180 countries to define India's export objective. Thanks to ten months of consistent efforts, India has already achieved US$ 336 billion in exports as of January 31st 2022. He also added that India’s Service exports will cross US$ 240 billion highest ever exports in India’s history. He also added that India’s merchandise exports targets is at US$ 400 billion and Service exports which is already at US$ 240 billion should aim for US$ 1 trillion of exports each.
 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.