Budget 2023: A Catalyst for Growth in Construction and Higher Education – NICMAR Plays a Worthy Participant

“The much-anticipated Union Budget is here, and despite global economic concerns, India is optimistic and on track to become a $10 trillion economy, demonstrating its resilience.” – Dr. Anil Kashyap, Professor of Planning and Development, President of NICMAR University.

India is striving to become a $10 trillion economy by 2035, according to the report of the Centre for Economic and Business Research, India. The infrastructure sector is undoubtedly the key driving force in the growth of any economy.

The Ukraine-Russia conflict, which began in February 2022, has caused commodity prices to rise due to supply shortages. This, in turn, has put pressure on the economies of countries that rely on these commodities for their economic stability and growth. The budget has surely taken this into account to maintain stability in the economy.

The Union Budget 2023 focused on 7 priorities, including infrastructure. With anticipated expansion over the coming years, the budget’s emphasis on construction projects is poised to create new job opportunities and enhance the industry’s growth.

It aims to stimulate economic growth and provide opportunities for the people of India by supporting this vital industry.

Let us look at various interesting announcements with a focus on infrastructure and education.

Construction Sector Boosts
● In the Budget 2022-23, the Government has focused on giving the necessary push to the economy by investing in various infrastructure projects. It has set a Spending target of Rs. 10,000 crores per annum through Urban Infrastructure Development Fund (UIDF) for upgrading the infrastructure in Tier 2 and 3 cities and towns.

● The Government has announced a capital outlay of Rs. 10 lakh crore for the infrastructure industry this fiscal year, an increase from the previous budget’s allocation of Rs 7.5 lakh crore. The outlay is around 3.3% of GDP. In the last budget, the allocation was around Rs. 5.54 lakh crore. I believe the increased outlay in the infrastructure sector will surely aid in the country’s development and benefit all sectors of the economy.

● The commercial real estate industry has been impacted by the COVID-19 pandemic, and Government assistance in the form of increased access to financing will boost this sector and the economy.

● This will be done via a boost of Rs. 75,000 crores in 100 transport infrastructure projects with a focus on green growth and making sustainable cities for tomorrow.

● The construction industry for the past three years has experienced hurdles as raw material costs jumped steadily reaching their highest levels on March 22, led by supply chain constraints. Commercial and residential real estate will get a significant boost from this budget, minimising the raw material cost and promoting economic costs.

● Local Governance – The ring-fencing property tax to improve the credit rating of municipal bonds are welcome initiatives.

● Environmental – Incentivisation of sustainable and green actions such as waste to wealth plants, promotion of energy storage facilities, tourism sector and reduction of custom duty for greener mobility will go a long way in paving the path for net zero development target by 2070.

● Education Sector – How we Can Leverage the Announcements

Higher education is another sector where India has made significant progress, with the Government taking initiatives to enhance educational quality and increase access to education for all. Budget 2023 has allocated Rs. 1,12,898.97 crore funds for education, out of which Rs. 44,094.62 crore is for higher education. I think this is a good move towards making education more accessible and improving educational quality in India.

If we compare, the Union Budget FY23 allocated Rs. 1,04,278 crores for the education sector and Rs. 93,223 crores for FY22. So, the allocation for education has increased significantly in the past few years, suggesting the importance of the education sector for the Government.

The recently announced Union Budget 2023 prioritises equal educational opportunities for all, regardless of financial status. To achieve this aim, the budget includes more financing for research and activities that promote access to education. The budget also encourages the adoption of new tools and technologies to improve education quality and make it more accessible to all.

The Union Budget 2023 aspires to level the playing field and provide all people with the opportunity to excel and realise their full potential by investing in education.

It also focuses on allocating more funds for research and providing greater mobility for students in higher education through different measures. Additionally, the increased funding for research is aimed at supporting the advancement of knowledge in various fields, ultimately benefiting students and society as a whole.

The focus has been brought on teacher training which will be reenvisioned through innovative pedagogy, curriculum transaction, and technology. Tech-enabled teacher training would enhance technology in education while also improving the quality of education in both public and private educational institutions in India.

A Rich Pedagogic Environment

The Union Budget has always been successful in creating a robust research environment in various universities across India. This was accomplished over time by providing infrastructural support through grant-in-aid allocations. The recently proposed budget is intended to maintain this trend and to offer more assistance to India’s research community.

Moreover, the budget’s focus is on skills development so that the workforce can remain competitive even in uncertain environments to propel economic growth.

Missed Opportunities

Further Budget 2023 emphasis could have been laid in actualisation of education, training, innovation and use of digital technologies in the built environment and construction sector which is the second highest contributor in GDP. The adoption of new technologies and design techniques can improve the functionality, performance of buildings and speed up construction and reduce waste to aid in the circular economy of the nation.

NICMAR Poised for Growth with the Country
We at NICMAR also believe in creating the next generation of leaders in the industry by incorporating new techniques and technologies to better prepare students for the dynamic and ever-evolving industry.

For the past four decades, as educators in the field of construction management, we have established a strong legacy of imparting knowledge and skills to students. This legacy is now transforming into a full-fledged university accessible to students from various fields and sectors. Our goal is to give comprehensive education in management, including courses and programmes that extend beyond the
construction industry.

We are a major contributor and participant in the nation-building exercise with construction and infrastructure at the forefront and using government impetus to give the best minds to the country – in management and problem solving.

Do share your insights/ inputs / feedback in comments.