Ritesh Agarwal
India’s status as an outlier amid the uncertainties of the global economy is no accident. Stable political environment, substantial investment in public infrastructure and a demographic boom have set us apart. This year’s Budget was an opportunity to build on that momentum, and finance minister Nirmala Sitharaman has hit the right notes.
Infrastructure remains a priority with allocations aimed at improving connectivity and supporting regional growth. The tourism sector also found prominence, underscoring plans to promote India as a leading global destination, with the Economic Survey highlighting the surge in foreign tourist arrivals in 2023 – a total 9.2 million visitors, a year-on-year increase of 43.5%.
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While that augurs well for India’s global standing, the real opportunity lies in the domestic circuit, especially with a rising middle-class that is not shy of spending on travel. Indians are moving beyond oft-travelled destinations and seeking new experiences, further expanding the potential of domestic tourism.
Infrastructure will continue to be the cornerstone of tourism growth. The finance minister’s decision to keep the infrastructure spend unchanged underlines the commitment to spurring growth and creating jobs. This sustained infrastructure push would boost tourism and see the emergence of new tourist places, especially in rural and semi-urban India.
Spiritual tourism has picked up pace in the last few years and it is encouraging to see the government retain that focus with plans to build corridors at the Vishnupad and Mahabodhi temples that will follow the Kashi Vishwanath Temple blueprint. Apart from cultural preservation, infrastructure projects in religious towns often lead to broader regional development, with Varanasi and Ayodhya both fine examples of such an approach. With the rise in popularity of religious travel – especially among youngsters – there are several spiritual sites waiting to be transformed.
On a personal level, it was heartening to see Odisha – my home state – find a significant mention, as the government draws up plans to develop the state’s myriad temples, scenic coastline and natural landscapes. The focus on Nalanda, a place of immense historical importance, is equally noteworthy.
It has been a difficult year for startups as some companies continue to reel from the slowdown in funding. Only two startups achieved unicorn status in 2023, a marked decrease from previous years when that figure stood at 23 and 39, respectively. The abolition of angel tax on all classes of investors could potentially be a major catalyst for the startup ecosystem.
A long-standing demand of early-stage startups, the decision marks a crucial step towards India positioning itself as a global centre for innovation. As more Indian startups harbour international ambitions, the departure from angel tax would help reduce the financial burden on young startups and attract funding from beyond Indian shores.
The push for startups is commendable. It is also a sign of how startups are no longer on the periphery of the India growth story. The last few years have democratised entrepreneurship across the country and triggered an entrepreneurial spark among thousands of youngsters. From e-commerce to space technology, modern Indian startups have emerged as trailblazers, pioneering innovation and problem-solving on a large scale. They are poised to power the next wave of economic growth.
As we set our sights on becoming the world’s third-largest economy, it is worth noting that countries with a highly skilled workforce are better positioned to draw investments, spur innovation, and engage in profitable international trade in a competitive global economy. The Indian workforce is reported to have one of the largest skill gaps in the world, a problem that is exacerbated by socioeconomic disparities and constant migration of labour from one sector to another.
A new central scheme for skilling in collaboration with states that will equip 2 million youth over the next five years would, hopefully, go a long way in addressing that gap. The decision to offer internships to young job aspirants in ‘500 top companies’ would enable us to build a future-ready workforce.
Among the standouts of the last decade or so has been the rapid digitalisation of the Indian society. India’s robust digital public infrastructure (DPI) was unveiled before the global audience at last year’s G20 Summit, and the finance minister’s clarion call for private companies to develop DPI applications at scale would foster innovation. Aimed at areas such as e-commerce, education, health, logistics and urban governance, the initiative could boost fields like AI, with algorithms being eventually integrated into the DPI.
As India continues to lay the groundwork for a robust and inclusive economy, the vision of ‘Viksit Bharat’ is becoming a reality. With strategic investments in infrastructure, tourism, skilling, and technology, the nation is well-positioned to harness its demographic dividend and continue to defy global expectations.
(The author is the founder and Group CEO of OYO. Views expressed are personal.)
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