National Colloquium-Pre Budget Session 2023

➢ January 10, 2023, marked the second day.

• The discussion began with the economic challenges the GOI is currently facing. The
first major concern, "The ease of doing business," must be resolved in order to
maintain higher growth through significantly increased investment and productivity
advances. The second significant issue is how to boost GDP while keeping inflation
under control while the majority of the world is in a recession. The Government of
India must also rearrange its expenditures in the medium term in order to ensure
that borrowing for revenue expenditure is reduced and eventually abolished. The
government is also dealing with a hefty fertiliser subsidy bill as a result of price rises
brought on by the Ukrainian situation. As a result, it's expected that the government
would focus on boosting demand and improving infrastructure.
• Initiatives to increase domestic R&D must be implemented as part of the new
Education Policy 2020, such as funding the National Research Foundation (NRF).
About 30% of our GDP is made up of MSME's, who also receive 50% of all export
revenue. This industry therefore expects a more flexible line of credit, which would
be one of the most crucial requirements for MSMEs as their working capital is
typically restricted by sluggish payments and supply chain issues.
• The parts of the service industry have also been described. The economy's soft
components, such as trade, accommodation, and food; transportation, storage, and
communication; financial, insurance, real estate, and commercial services; as well as
communal, social, and personal services, are all included in the service sector. The IT
and ITES industries in India are one of the main forces behind the expansion of the
service sector in the post-globalization age. The IT and BPO sectors could develop
into India's main growth engines, much like oil is for Saudi Arabia and electronics
and engineering are for Taiwan. The difficulties currently affecting the service sector
are the poor rate of GDP growth, the large budget deficit, the high levels of inflation,
the rising unemployment rate, the high current account deficit, and the spread of
the COVID-19 epidemic.
• The health care infrastructure in rural areas has also been planned using a three-
tiered approach based on demographic norms. To end the AIDS, tuberculosis,
malaria, and neglected tropical disease epidemics, combat hepatitis, water-borne
illnesses, and other communicable diseases, and achieve universal health coverage,
it is necessary to ensure that everyone has access to safe, effective, high-quality, and
reasonably priced essential medicines and vaccines. These are only a handful of the
issues that must be resolved for optimal health and happiness.
• Other challenges that face agriculture are those brought on by determinable and
determinant causes. Lack of market linkages, low levels of product differentiation,
and bad business judgement are among the controllable factors. Geographic
isolation and a deficient infrastructure for roads, power, etc. are among the
unavoidable factors. People are unable to realise their full potential and achieve a
higher level of living because farming is merely a necessary necessity and not a
profitable business opportunity. However, they have the potential to fundamentally
alter the food and agriculture industries if encouraged and given the right direction.
• The government has started a new Central Sector Scheme called "Formation and
Promotion of 10,000 Farmer Produce Organizations (FPOs) across the nation" with
a clear plan, committed resources, and a budgeted allotment of Rs. 6865 crores. An
FPO's primary goal is to increase farmers' income, and in order to do this, they offer
services and engage in activities that support meeting these needs.
• This is primarily due to "Incomplete civilization." Collectivization only takes place
before to harvest. Crop cultivation does not account for the majority of the value
added in agriculture; rather, post-harvest storage, transportation, processing,
packaging, and marketing do. In order to boost the agricultural value chain, the
finance minister also disclosed that NABARD, the major rural bank, would establish a
fund to finance new rural enterprises and startups.
• A PPP (Public-Private Partnership) programme will be established with the
assistance of public sector research and extension institutes, private agritech
operators, and stakeholders of the agri-value chain to provide digital and high-tech
services to farmers. In order to examine crops, digitise land records, and spray
nutrients and insects, the government will also introduce kisan drones. A few
announcements made in the Union Budget 2022 may have a big impact on her life
and general insurance industries.
• Some of these advancements include the incorporation of 1.5 lakh post offices in the
core banking system, digital money from the Central Bank, and digital banking units.
All of these activities will have a stronger impact on life insurance as well as general
insurance. IAs were the subject of conversation after that (Implementing Agencies).
Currently, 09 Implementing Agencies, including SFAC, NCDC, NABARD, NAFED,
NERAMAC, TNSFAC, SFACH, FDRVC, and MORD, have been finalised for the
formation and promotion of FPOs.
• It is also anticipated that as part of the new National Education Policy, 2020,
initiatives would be made to intensify domestic R&D activities, such as funding the
National Research Foundation (NRF). India's technical and socioeconomic supremacy
depends on funding homegrown innovation, and the NRF will be essential in
fostering this in the country's academic and research institutions. The PM Gatishakti
programme, a revolutionary strategy established in the last budget to promote
economic growth and sustainable development, is also anticipated to be
strengthened.
• Seven engines—roads, railways, airports, ports, mass transit, waterways, and
logistics infrastructure—power the strategy. Each of the seven engines promotes
rapid and inclusive growth. As a result, this strategy needs to be strengthened and
more funding should be provided. Another crucial area of major concern is storage.
The banking-NPA and insurance sectors are making progress. Graduate students are
given skills and training at the exit level by the IT and ITES sectors.