Indian Union Budget 2021-22: In the budget presented on 1 February 2021, the main focus of the government will be to bring the economy back on track. Expert says that the government had announced self-sufficient India in the past. Now, there may be big announcements in the budget to make it work properly. Where the government can focus on increasing infrastructure activities in the country through self-sufficient India package. At the same time, it will also aim to boost exports, more facilities for business, increase demand by creating more jobs. Its direct impact will also be seen on the market. Apart from this, experts and brokerage houses are expecting some big announcements for the market.
The market will directly benefit
Director of Fortune Fiscal Jagdish Thakkar says that last year the government announced a massive relief package of 20 lakh crores to revive the economy from the corona virus epidemic. Now the time has come to implement this plan properly. Budget is the perfect platform for this. In such a situation, some big announcements regarding self-sufficient India are possible in the budget. He says that the country’s infrastructure sector will benefit from this package. At the same time, the government can focus on increasing rural income through it. Along with this, there will be an effort to increase demand by giving employment. This will benefit not only domestic companies but also MSMEs. The income of companies will also increase with the increase in rural income and consumption. At the moment, the self-reliance in the budget can give a new direction to the market in India.
Big objectives of self-reliant India
The boost manufacturing sector, make farmers self-reliant, increase farmers’ income through fertilizer subsidy, encourage both employees and employers, increase liquidity in the market, provide maximum employment to poor, boost exports, business To create a better environment for, encourage MSMEs.
These announcements will also become booster dose!
Banking system support: Banking system can get support in the budget. NPA has been a big problem in banks in the past. Ajit Mishra, VP Research, Religare Broking, says that the banking sector, which has long been an underperformer, may be a priority for the government. If the banking system gets support, then the sector is expected to witness the fastest growth in 2021.
Relief Package to Pressure Sectors: Due to Coronavirus epidemic, many sectors have broken their back. Many sectors are still facing its pressure. These include aviation, tour and tourism and services sector prominently. The government can give relief to these sectors in the budget.
Rural Sector: To accelerate the economy, the government may also announce increased spending on the rural sector, infrastructure and agriculture sector in the budget. Apart from this, a declaration on the disinvestment plan is also possible.
Tax relief: This time in the budget, the government may not give relief from tax or LTCG on dividend, but will not want to bring any new tax to give relief from coronavirus epidemic. However, if there is relief on tax then it will be positive to increase liquidity in the market.