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Monday, December 6, 2021

Union Budget 2021: There will be a focus on increasing rural demand in the budget, these measures will increase the consumption story

Union Budget 2021 India: Consumption story has been affected due to the Coronavirus epidemic.

Indian Union Budget 2021-22: The Consumption Story of the country has been affected due to the Coronavirus epidemic. Demand is now improving in many sectors, but Pre COVID has not been able to come to the level yet. Now that the Union Budget is going to be presented on February 1, experts are hoping that the government can make some big announcements in the budget, especially to increase demand. Due to this, companies related to consumption will also benefit and their shares will gain. Explain that due to Coronavirus epidemic, the consumption sector was also involved in the most affected sector. There is still pressure on many fast-moving consumer goods companies. Brokerage house Yes Securities has released a report in this regard.

Increased allocation on NREGA will boost rural demand

According to the brokerage house, this time the government should allocate either equal to or more than the previous year in the budget on rural schemes like NREGA. Also, Extra COVID 19 package should also be announced. This will increase rural demand. At the same time, to strengthen the rural demand, the government should increase investment in Agri infrastructure. This will also give a boost to the consumption story. Doing so will benefit the shares of FMCG companies HUL, Dabur and Emami.

Union Budget 2021: Will Tax Deduction Limit Under Section 80C? Common people will get relief from these announcements

These measures will also increase demand

According to the brokerage house, the government should increase the investment limit under Section 80C of the Income Tax Act from Rs 1.5 lakh to 2.5 lakh. Increasing the tax exemption limit under 80C will save people money, which will increase the liquidity in the market along with increasing investment. This will also benefit FMCG shares HUL, Nestle, Tata Consumer and Marico.

Discount on domestic tourism

According to the report, tax rebate should be announced on domestic tourism. This will benefit hotel companies such as Indian Hotels, EIH, Lemon Tree, Thomas Cook. Companies like Government Avenue Supermart will be benefited by applying a special tax on the online retailer.

PLI Scheme Extension

Extensions of PLI scheme in new sectors such as laptops, IoT devices and white goods will benefit local manufacturers. Companies like Dixon, Amber, Havells, Whirlpool, Hitachi and Voltas will benefit from this.

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