The budget presented by our Finance Minister (FM) Nirmala Sitharaman and her team is rightly focusing on Healthcare, welfare and infrastructure, which are the three main focus areas in today’s context. It is evident that the FM has done good homework and analysis to identify areas where money can be spent. Appropriate attention to disinvestment and privatisation is a welcome move. This would certainly enable a growth trajectory for the industry.
No new burden on tax was a sigh of relief for the common man. At the same time, reduction in customs duty on gold and silver will provide cheer to the sellers as well as the buyers of ornaments.
2020 was one of the toughest years for our country’s economy. Recovery from such a low is certainly one of the biggest challenges. The challenge for the FM was not only to ascertain momentum but also give confidence to the industry, to tread on the growth path. Once the right set of belief is in place, progress will certainly follow. The need of the hour is to turn the growth upwards and march towards an average of 7.5~ 8% a year. If there is any failure in restoring faith amongst the masses, both spending and investment will pause, and the country may surrender to inflationary pressure. This could then become a large challenge to handle.
The stock market reaction to the budget was probably an indicator of the contentment of the international investors. Raising the foreign direct investment limits in the insurance sector is one of the positive of the budgets. India is now poised as an amenable location for foreign investment. The prompt actions from international investors could certainly be a great contributor for the Indian economy to grow from $ 2 trillion to a $ 5 trillion economy, opening several opportunities. Another solution that the budget has provided to the problem of stressed assets, is the idea and provision of a bad bank.
Vaccine implementation is one of the critical and significant areas to focus on, and allocation of funds of Rs.35000 crores towards the same will make the required effect in terms of affordable access to eliminate COVID19. The budget can be termed as a forward-looking budget, especially for the health sector.
There is a clear focus on upskilling of our healthcare workers, expansion of healthcare infrastructure and facilities. Healthy India will translate to a Safe and Efficient India. Travel, sale of automobiles and other goods, re-opening of restaurants would be the result of this action, which in turn will bring the necessary cheer to the economy.
