Budget 2024: Finance minister’s focus on rural and SME sectors are key to inclusive growth, says SBI Chairman
HomeEconomy NewsBudget 2024: Finance minister’s focus on rural and SME sectors are key to inclusive growth, says SBI Chairman
As per the Chairman of SBI, while the Economic Survey had estimated a growth rate of 6.5-7% for FY25, the anticipates a figure surpassing 7%, with a more specific projection of around 7.5%. Khara attributed this positive outlook to key budgetary measures, including substantial investments in housing.
Dinesh Khara, Chairman of the State Bank of India (SBI), in an interview with CNBC-TV18, highlighted that the budget’s major focus is on enhancing productivity, particularly within the rural and SME sectors.
Finance Minister Nirmala Sitharaman, on Tuesday, presented the Union Budget 2024, which sparked widespread discussion among economists, business leaders, and policymakers.
According to the SBI Chairman, the government’s prioritisation of these areas reflects a commitment to fostering inclusive growth. “The budget is distinctly oriented towards addressing the needs of farmers, the poor, women, and youth,” Khara noted.
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While the Economic Survey had estimated a growth rate of 6.5-7% for FY25, Khara anticipates a figure surpassing 7%, with a more specific projection of around 7.5%. He attributed this positive outlook to key budgetary measures, including substantial investments in housing.
“Housing is a major focus and will significantly boost the core sector of the economy,” Khara explained. This, in turn, is likely to enhance employment opportunities and stimulate growth.
Below are the excerpts from the interview.
Q: Let me ask you for your broad view on what the budget hoped to address in terms of growth-stimulating measures. How do you see things changing for the economy in light of the announcements?
Khara: When it comes to the major focus of the budget, what is being attempted is to have a sharper focus on the productivity, rural sector and SME sector. So all this is a reflection of the priorities which the government has and also it is more for the inclusive growth, which is being attempted here. Having said that there is a very clear focus in terms of climate finance with the energy security and the nuclear reactors scheme which has been thought about.
So if we look at the sense of the budget, it is very clearly focused on the farmer, poor, women and youth. The main themes are employment, skilling and MSMEs. So this is my understanding of the budget and I am quite confident that it is going to lead to inclusive growth of the economy.
Q: What is the headline growth number that you’re going with, that SBI is going with? Yesterday we saw the Economic Survey talk about a 6.5-7% growth rate. What is the growth number that you would like to go with?
Khara: I sense that it should be over 7%, I would be more going towards 7.5%. Housing is another major focus of the budget that is going to give a significant fillip to the core sector of the economy, employment will also move up which also means that there’ll be a decent opportunity for the retail book to grow. So I perceive this budget to be very promising in terms of supporting the growth initiatives of the economy.
(Edited by : Vivek Dubey)
