Budget 2022 is a foundational budget for the 'New India': Piyush Goyal, Union Minister of Commerce & Industry

Budget 2022 is a foundational budget for the 'New India', i.e., how to make India a prosperous country, says Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles. He talks about the amendment to SEZ law, support to the textile sector, exports, employment generation and plans associated with it among others during an exclusive interview with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: How do you see this budget and what expectations should we have for business growth that will lead to employment?

A: I think, the whole focus has been on increasing the opportunities in the country and new employment opportunities are created to work for our people. At the same time, the investment made by the government should become a base to give a boost to the economy of the country. At a time when an investment of around Rs 10 lakh crore will be made on infrastructure (combining centre and the state) then its multiplier effect will be huge and there will be demand push to the whole economy. Based on the same the private sector can also make its investment and it will also benefit small and big industries, MSMEs among others. Our youths will get an opportunity to work and the entrepreneurs and start-ups will get a chance to implement new ideas. In a way, this is a foundational budget for the 'New India', i.e., how to make India a prosperous country. The honourable Prime Minister and the Finance Minister have laid a foundation stone for the purpose.

Q: You have identified champion sectors that have growth opportunities and have employment generation capabilities. What kind of progress is going on there because it will be quite challenging to see all parallelly?

A: You would have seen that in the first two years, that time-to-time, the Prime Minister has taken several important decisions through different packages of Atmanirbhar Bharat and different decisions. For instance, the Production Linked Incentive (PLI) Scheme of around Rs 2 lakh crore for 14 sectors and even a decision to allocate Rs 19,500 crore through the PLI scheme to the solar sector was announced in this budget. A scheme of Rs 76,000 crore was also announced to bring the semiconductor industry to India. So, I think, instead of waiting for the budget for everything, time-and-again work has been done to encourage different areas where there is a requirement. In a way, in the last two years, there has been a continuous process to make India prosperous, self-reliant (Atmanirbhar), improve and increase its infrastructure, improve India's production capacity in different sectors along with quality so that we could produce at an international stage at a global scale. If you look at all these things, then you will get a balanced process of the last two years and you will get to know how a new direction of India is being created and going forward, how India will be made a prosperous country.

Q: What are the immediate challenges that you foresee and it should be addressed as they can become obstacles in our growth?

A: First of all, we all have an eye on COVID and what turn it takes. Everything is in mind, as in, going forward, is there an increased in the pandemic or a decline or it is controlled. So, COVID will definitely be a challenge and we all will have an eye on it. Rest includes reduction of the compliances, increase the ease of doing business. To encourage the startups and entrepreneurs, from time to time, we also work on the suggestions that we receive from them. This is a continuous process and I can assure you that the government will be ready. All the ministries are working so that together they can give momentum to the country's economy. From our end, we are signing free-trade agreements with other countries and are also working on comprehensive economic partnerships. Our priority is to find ways to reduce the logistics cost in our country. Simultaneously, the speed of implementation of the infrastructure projects should be increased. Speed of investment can be increased by using the Prime Minister Gati Shakti - National Master Plan - a facility prepared by Mr Prime Minister with a very far-reaching thought. There should be ease of doing business and make the life of the common people more simple, we all have to draw attention towards the ease of living. 

Q: Export is a big area of focus and we have definitely seen an improvement in the domain but need to work more on it. So, what are your plans to encourage exports and are you working on any scheme?

A: I think, the remuneration of duties and taxes for exports that was levied at the state level or cesses. which are not included in the GST was already announced and its old backlog was also paid. The scheme has also been implemented. Interest equaliser scheme, which used to help our exporters and benefitted small exports in terms of the rate of interest has been re-established through this budget. Apart from this, the production linked incentive (PLI), which focused on quality and scale, will also help in our export surplus or export capabilities. The huge investment being made on the infrastructure among others will reduce the logistics cost will, naturally, support the export. So, the export will gradually stand on its feet. The clutches of subsidies, at least I feel, we must not go on it and we are focusing more on their problems. This year, we had a target to reach exports worth 400 billion US dollars by this financial year and we will cross it. It will be the first time in the history of India that export worth USD 400 billion will be made, the previous mark stood at around USD 330 billion and was achieved 3 years back from today. This will be a huge leap. It will increase by 35-40% next year, such growth will not be seen every year but going forward our exports will increase on a regular basis and we will strive for that.

Q: An amendment has been made in the Special Economic Zones (SEZ) Act, which will benefit local manufacturers in terms of the tariff that was kept for exports. So, what impact will it have on the overall economy?

A: SEZ was a successful experiment. A very good palladium play infrastructure has been created and how it can be used more for the country. How the factories that have been established, the available land, plug and play infrastructure that is available in the SEZ, can be used more in fulfilling the countries for the country. For that purpose, instead of limiting the SEZ law on export, we want to turn it into an industrial park and can meet the requirements of India and new investments should come there, new industries are established and the service sector starts working from there. The connectivity of the lakhs of a hectare of the lands that are lying in the industrial parks should be improved and lands should be available at cheap rates. In addition, plug and play infrastructure, i.e., electricity, water, broadband connectivity, road connectivity, highway connectivity, railway, airport, is available in the industrial parks. Industries will be benefitted and industrial growth will be supported if the SEZ parks are jointly developed by the states and the centre. It is a matter of fact that the SEZs have got some benefits in the past. To make sure that the goods being manufactured outside in the domestic tariff area should not be disadvantaged, therefore, a discussion on imposition of the equalisation levy is going on with the finance ministry. We are going to bring changes in the SEZ law, so that in the long run a plug and play infrastructure is available to everyone in the country.

Q: A lot of actions has been taken for the growth of the textile sector and increase in its exports under your leadership, like the PLI scheme and mega-cluster parks. But in line with the increase in the raw material prices, especially for cotton and it was expected that the government is looking at the import duty and is also considering reducing or abolishing it. What is your take on it and what incentive the exporters will get from the point of view of textile?

 A: Cotton that is made in India, usually, meets the needs of India and is also exported. But there are some cotton that is not made in India and have to be brought from abroad, definitely, there is an import duty on it but to fulfil the requirements of our exporters, a duty-free import is allowed against the cotton that is required for export. So, I think, export must not face any difficulties due to this. Therefore, importing through authorisation for the cotton that is required for exports is allowed to them and it will continue in the future as well.

Q: How the employment will be generated and your ministry plays an important role in it because your pockets are capable of generating huge employment opportunities. What are your plans to increase the employment opportunities and do you have any number for it?

A:  Employment will increase both ways. The sectoral support being provided to many industries through the production linked incentive scheme - 14 sectors were present and now, the semiconductor has been added to it - under which investment of around Rs 3.75 lakh crore will be made. In fact, money will be provided to the industry through the PLI scheme due to which investments of lakhs of crores will come, which will result in the generation of lakhs of direct employment opportunities and even a large number of indirect employment. In a way, the PLI scheme will result in industrial growth, which will create new opportunities for employment. At the same time, the huge investment that the government will make on the infrastructure will give a big push to demand. When Re 1 is spent on the infrastructure then its multiplier impact is about four times. This will increase the demand in the country and the demand will increase then private investment will be encouraged. Jobs will be created even in infrastructure creation. It will lead to a demand for steel, cement and sanitary fittings among others and as a result of the multiplier effect, huge employment opportunities will be created. At the same time, it will also open a new way forward for our entrepreneurs, small and big industries and the MSMEs to increase their business.