AA Edit | Like In 1991, Will FM Set A Transformative Path?

Every Indian may not understand the financial jargon that finance minister Nirmala Sitharaman would use when she presents her ninth Budget in the Lok Sabha on February 1. Similarly, an average citizen may not understand the import of the falling rupee or the ebbing US dollar flow. One thing that every Indian, however, would understand is that gold and silver — which are intrinsically connected to the ritualistic lives of most Indians — have become unaffordable. As a result, every Indian knows that “all is not well” and would have their eyes set on Ms Sitharaman.

The finance minister, therefore, carries a huge burden of navigating the country and its economy through unprecedented global financial uncertainty. When the world is in flux, India cannot remain aloof. The country needs to make hard choices. This Budget, therefore, may not be popular in the traditional sense, as it may not offer anything substantial in terms of savings to people or companies.

However, Ms Sitharaman could lay the groundwork to extricate India from dependence on foreign countries for strategic products such as energy, electronics and defence equipment. Imported fossil fuel has always been one of the major causes of financial distress for India. Though India achieved self-sufficiency in food through the Green Revolution, the world’s most populous nation is dependent on other countries for commuting, which is the country’s biggest vulnerability.

The Budget could focus on rolling out another green revolution in energy to reduce this external dependency. Another area of concern is electronics, which has become one of the major consumers of foreign exchange. However, the Indian manufacturing sector must become efficient to achieve self-reliance in electronics, especially in semiconductors and rare earths. Though it may seem difficult on the surface, the Indian automobile sector achieved this long ago. All that India needs is some big electronic players and a concerted effort involving government, industry and academia. The Budget could have something on this front.

Imported defence equipment is another pain point for India. The country is still dependent on other countries for key components of weapons systems, which keeps India hostage to foreign powers. The finance minister may take steps to further indigenise the manufacturing of defence components.

The Russia-Ukraine war and the US capture of Venezuelan President Nicolas Maduro showed how drastically technology has altered war. If India is not to be left behind in this race, the government should incentivise private companies to spend on research and development. Apart from this, Indian Institutes of Technology (IITs) should be nudged to become research hubs rather than factories that mass-produce engineers for the world.

Ms Sitharaman’s current Budget, therefore, should no longer focus only on the upcoming financial year; it should be path-breaking — something that posterity remembers in the same vein as the 1991 Manmohan Singh Budget. The Budget should take steps to make the country self-reliant and competitive, and not have a narrow-minded focus on polls or votes. It is time for the Budget to display a true sense of patriotism.