FM Sitharaman’s 6 pillared budget is progressive and growth inducing in more ways than one. Push to infrastructure, healthcare and education and extension of tax holidays for startups and affordable housing projects are exactly the reforms that our economy needs for growth.
The increase in FDI in insurance to 74%, provisions for the divestment of PSBs and the famed LIC IPO will accelerate growth in the banking and financial services sector of the country. Also, the institutional framework is a welcome confidence building measure which will deepen the secondary markets.
Budget 2021 will benefit the real estate sector in the form of extension of interest deductions and tax holidays for affordable housing projects. The Vehicle Scrappage policy will be a big boost for the Auto sector
Allocating funds for digital adoption and providing incentives for the same will facilitate digital inclusion and greater transparency in the financial services ecosystem. This is a great motivator for companies to continue innovating.
From a long term perspective, the budget projections have expressed resolve for fiscal consolidation and deficit management. Further, FY 21 and FY 22 deviations are attributed to the unprecedented precipitation of the pandemic. India’s economy will exhibit resilience and emerge stronger in the near future.
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