Budget 2021-22

Expectations from Budget

All eyes are now on the Union Budget 2021 with high expectations and hopes from virtually all section of the society. As India is slowly emerging out of the shadows of the pandemic with falling COVID-19 numbers, the beginning of the vaccination drive and economy on the mend and historic market levels 2021 has begun on an optimistic note.

As expected, growth will be the central theme around which budget initiatives will revolve. COVID-19 has severely disrupted India's growth trajectory and getting growth back on track in Financial year 21-22 will be finance minister's topmost priority. Infrastructure investment is the key for growth and we are likely to see higher allocation for infrastructure financing.

Given India's experience during the pandemic, expect a greater thrust towards investment in healthcare infrastructure and insurance incentives are expected as well. Housing and real estate are likely to receive a boost as it adds core economic growth. With the Government needing to raise resources, an aggressive divestment programme is also expected to be announced.

The major focus area of budget 2021 will be on the job creation, that will provide immeasurable economic relief to India's middle and lower-middle-class who have even been deeply impacted by the pandemic. Also on the agenda will be specific reforms to help sectors under stress.

As Fiscal deficit target for FY 21-22 is likely to be around 5.5 to 6% of GDP. Union budget 2021 will try to balance the twin objectives of stimulating growth and managing fiscal deficit. Expectations of demand stimulus measures are also important but given the fiscal situation, there could be limited head rooms available. All in all budget 2021 is likely to be set an aggressive "Atmanirbhar growth agenda".

In Budget 2021, a sharp focus on employment generation and entrepreneurship led growth is anticipated, as India prepares to become more digitally savvy in 2021, we need to soar up our defences against cyberattacks by enhancing data protection for all sectors.

The pandemic has impacted all sectors as businesses of all sizes. It is essential to have inclusive policies that will enable ease-of-doing-business in this new order while allowing small businesses to prosper.

One of the sectors that require attention in the upcoming budget 2021 is education. The pandemic has disrupted the sector to a great extent, where students and teachers were not prepared for a sudden shift to online forms of teaching and learning. The new focus in education calls for a renewed focus and investments for our educational institutions to be at par with their global counterparts.

With the promotion of clean energy priority on the government agenda, we expect lots of reliefs to be provided by the Government to encourage people for the faster adoption of Electric Vehicles, which includes income tax holiday, lowering of ROI, providing subsidies, waive-off parking fees and toll taxes for electric vehicles, that will further push green mobility in India.

We are also expecting from the union budget 2021 for creating a thriving ecosystem and bring about a groundbreaking transformation in the logistics sector. Hope that logistic for small and medium businesses will be eased.

Again the technology sector expects some operative and promising policies. The government should keep up with its focus on enhancing the digital infrastructure and strengthen it in tier-2 and tier-3 areas.

Union budget 2021 is expecting a boost in domestic consumptions, spending and savings within the nation need to be a priority. India's first and foremost issue to be addressed in the union budget 2021 is the allocation of funds to develop digital infrastructure.

In the pandemic, inflation risk has aggravated and it could be tackled more through supply side. There should also be measures for relaxation in FDI norms. The budget should bring more focus and allocation on digital infrastructure. The Government must also include tax exemption for companies making products in India.