Indian budget lays focus on infrastructure, digitalization
February 1, 2022
India's budget 2022 plans to ramp up infrastructure spending to support the economy's post-pandemic recovery. Key announcements include a state-backed "digital rupee" and tax on gains from digital currencies.
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Indian Finance Minister Nirmala Sitharaman on Tuesday unveiled the federal budget for the coming fiscal year, targeting higher infrastructure spending as the economy recovers from the coronavirus pandemic.
"The economy has shown resilience to come out of the pandemic. We need to sustain the level of growth," Sitharaman said.
The government proposed spending 39.5 trillion rupees ($530 billion, €470 billion) in the fiscal year beginning April 1. This is 4.6% more than the current year.
The larger budget is aimed at spurring growth in Asia's third-largest economy through public investment.
The government announced plans to step up investment in highways and affordable housing.
The finance minister announced spending of 200 billion rupees ($2.67 billion, €2.37 billion) for a highway expansion program and said 400 new energy-efficient trains would be manufactured over the next three years.
Her budget further called for spending 480 billion rupees on housing for the poor, and also included spending on new roads and airports.
"The touchstone of the master plan will be world-class modern infrastructure and logistics synergy among different modes of movement of both people and goods and location of projects," Sitharaman said.
COVID: Life slowly coming back to normal in India
Less than two months ago, India's health care infrastructure was dealt a hefty blow by the second wave of the coronavirus. After a period of collective grief, Indians are now stepping out as life resumes.
Image: Seerat Chabba/DW
Out and about
Commuters queuing up outside the entrance of a metro station in central Delhi. Just weeks ago, India was battling a devastating wave of the coronavirus that brought the country's health care infrastructure to its knees. Supplies of medical oxygen ran short and crematoriums were overrun. As numbers begin to fall, Indians are back on the streets of their capital city.
Image: Seerat Chabba/DW
Undeterred by heat
Vendors take a break amid a busy marketplace in Delhi. The fall in coronavirus case numbers comes at a time when temperatures are soaring in the national capital. Even as temperatures touch a peak of 43 degrees Celsius (109.4 degrees Fahrenheit), shoppers can be seen thronging local markets, hunting for good deals under the sweltering sun.
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Lack of social distancing
Large groups of people flock to a crowded flea market in Delhi's neighboring city of Gurgaon, a part of the national capital region. Despite attempts from local authorities to ensure that visitors adhere to COVID-related rules, social distancing remains a distant dream in markets like these. In some cases, mask-wearing shoppers were seen pulling down their masks to bargain for the best price.
Image: Seerat Chabba/DW
Respite from lockdowns
A couple walks through the narrow lanes of Khan Market in central Delhi. As cafes, restaurants and bars open for business after weeks of lockdown, many residents are stepping out for a meal or a drink as they seek a change from their COVID lifestyle. Tired of working from home, many young professionals can be seen perched on stools at local coffee shops, sipping on their iced lattes.
Image: Seerat Chabba/DW
Experts warn of third wave
As the sun blazes outdoors, malls have become the favored shopping destination for locals. However, as states lift their coronavirus lockdowns in phases, experts have warned that another wave of the virus, in part fuelled by the emergence of the "delta plus" variant, may not be far behind.
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Traffic back to normal
A large number of cars parked at Connaught Place in New Delhi. As restrictions are lifted and many offices resume work, traffic is back to its regular levels in the national capital region, even during non-peak hours. The short-lived ease of commuting within the city, which is known for its traffic congestion, has come to a quick end.
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Coronavirus fatigue sets in
A woman shops for ceramic bowls and platters as her dog looks on, in Banjara market, Gurgaon. Over a year after India imposed its first coronavirus-induced lockdown, COVID fatigue has set in. Authorities are finding it increasingly difficult to keep people from stepping out — especially in the cooler evenings — after weeks of staying cooped up inside their homes.
Image: Seerat Chabba/DW
Precarious calm before likely storm
While the Indian government was caught off-guard by the last surge, preparations are underway to prevent such a situation from repeating itself. Local administrations and hospitals are looking to bolster the country's health care system. But as masks hang below the chin and social distancing remains a faraway dream, experts say that India could see another surge in the next six to eight weeks.
Image: Seerat Chabba/DW
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Digital currency and crypto-tax
The government also announced plans to introduce a new digital rupee issued by the central bank in the next fiscal year using blockchain and other supporting technology.
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"Introduction of a central bank digital currency will give a big boost to the digital economy. A digital currency will also lead to a more efficient and cheaper currency management system," the finance minister said.
The Reserve Bank of India said they posed a threat to India's macroeconomic and financial stability.
India's craze for cryptocurrency
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Among other digital initiatives was the government's announcement to hold spectrum auctions for 5G mobile, with services being rolled out within the next financial year.
The government also said e-passports with embedded chips would be issued in the coming fiscal year to make passport services more convenient for citizens.