The Union Budget brought forth by Finance Minister Nirmala Sitharaman which centers on economic development and infrastructure projects will create major economic benefits for Puducherry in its pharmaceutical and tourism and educational and micro small and medium enterprise sectors according to the Confederation of Indian Industry (CII) Puducherry chapter.

M Nadarajan Vice Chairman of the CII Puducherry State Council stated that the Budget had designated tourism as a significant source of job creation. He noted that Puducherry has the potential to emerge as a high-value coastal, heritage and medical tourism destination by effectively leveraging the initiatives announced.

The Union Territory can establish more employment opportunities through skill development programs which it will create in partnership with the Indian Institute of Management (IIM).

Boost for MSMEs and pharma sector

CII announced that the government will allocate ₹10,000 crore to the SME Growth Fund which will support the revival of 200 legacy industrial clusters, thus creating direct economic benefits for Puducherry.

The Biopharma Shakti scheme, which has an outlay of ₹10,000 crore over five years, will benefit the pharmaceutical industry in Puducherry. The program aims to enhance pharmaceutical and biopharmaceutical production and clinical study and related services which will create economic growth for the Union Territory.

Education and urban development

The CII statement said that budget allocations for education together with University Township initiatives will enhance Puducherry’s role as an educational center.

Former MP and PMMMK president M Ramadass described the budget as forward-looking and aspirational according to his statement. The financial statement provides solutions for present economic issues while establishing a framework for future economic expansion.

The proposals which he presented to develop the Manufacturing Mission and create champion MSMEs and improve infrastructure and maintain energy security will sustain economic growth. The capital expenditure allocation of ₹12.2 lakh crore demonstrates the government’s commitment to executing essential infrastructure projects.

Concerns over growth assumptions

Mr Ramadass expressed doubts about the 7.1 percent growth prediction because the economy should have achieved more growth after multiple budgets that supported economic development.

He wanted to know if private sector activities had failed to achieve their intended output or if government policies had caused their existing performance to decline. He also warned that heightened geopolitical tensions and tariff conflicts which are part of higher international economic integration will create dangers during the current global situation.