“India has achieved a trinity of the impossible by increasing infrastructure investment, supporting inclusive growth while maintaining fiscal prudence,” said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management.
Sitharaman spoke at length about the development of India's air connectivity, pointing to Indian airlines having ordered more than 1,000 aircraft in the recent past and stressing that “the development of new airports continues apace.”
In June last year, Indigo placed its largest commercial aircraft order in history for 500 Airbus A320s to be delivered between 2030 and 2035, surpassing Air India's contract to purchase 470 aircraft from Airbus and Boeing in the same month.
Akasa Air ordered 150 Boeing 737 MAX aircraft last month.
She also highlighted the potential of the India-Middle East-European Union corridor, unveiled at the G20 summit last year, as a “game changer”. US President Joe Biden described the initiative as “a really big deal”.
“The continued higher allocation to infrastructure bodes well from a growth perspective and could act as a catalyst for higher private capital spending,” Shah told CNBC.
Sitharaman said long-term interest-free loans would be provided to various states for the development of tourist centers, while stressing that spiritual tourism has witnessed a boom in the past year.
Jefferies said India, which has the world's largest Hindu population, could attract 50 million to 100 million additional tourists a year through the new Ram Mandir – a temple in the northern city of Ayodhya that was inaugurated last month.
Up to Rs 750 billion with a 50-year interest-free loan will be provided to states to boost tourism, Sitharaman said.
Noting that India's economy will witness “unprecedented” development, Sitharaman highlighted four key areas of focus for the government: poverty, youth, women and farmers.
“Their needs, their desires and their well-being are our top priority,” she said.
The Finance Ministry said earlier this week that India could become the world's third-largest economy by 2027 with a gross domestic product of $5 trillion.
“Food, fertilisers, fuel and finance are issues due to the pandemic, but India has successfully navigated its journey,” Sitharaman said, while reiterating the government's goal of creating a developed India by 2047.
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