Budget 2021 has earmarked big investments and made them the sunshine sector.
For the first time this year, Union Finance Minister Nirmala Sitharaman has presented the budget in a paperless format.
In the Union Budget 2021-22, the Finance Minister highlighted that the budget proposals rest on six pillars, including health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, minimum government, and maximum governance.
Here we present 8 Sectors that will be benefitted from Budget 2021:
Finance Minister Nirmala Sitharaman has announced a new centrally sponsored scheme, PM Atmanirbhar Swasth Bharat Yojana, for the healthcare sector in Budget 2021. The scheme will be introduced with a total outlay of Rs 64,180 crore over a period of next 6 years
Sitharaman said that the 'PM Atmanirbhar Swasth Bharat Yojana' will focus on developing capacities of healthcare systems, develop institutions for detection and cure of new and emerging diseases.
Additionally, the government will offer Rs 35,000 crore for Covid-19 vaccines in 2021-22.
Vandana Luthra, Founder and Co-Chairperson, VLCC Group, said, “While it was widely expected that the expenditure on Health would be increased, an allocation of INR 64,000 crore over 6 years to the PM AtamaNirbhar Swasth Barat Yojana, with the holistic approach to strengthening all the three areas of Healthcare delivery - Preventive, Curative and Wellbeing - is a most welcome step, as is the continuation of the Poshan Abhiyan in its new Mission Poshan 2.0 avatar. Both will go a long way in reducing morbidity and ensuring a fitter India.”
Chandiok, Regional Director (South Asia), QNET Ltd, added, “The budget announced today is in line with the expectations and rightly focuses on the health and wellbeing of the nation recovering from the pandemic. We appreciate the Government's vision to announce a new centrally sponsored scheme, PM Aatmanirbhar Swasth Bharat Yojana which will be launched with an outlay of about 64,180 crores over 6 years. Aatmanirbhar Bharat is a viewpoint of 130 crores Indians who have full assurance in their capabilities and skills.”
Finance Minister has increased the target for agricultural credit to Rs 16.5 lakh crores to ensure the availability of higher credit to farmers and for animal husbandry, dairy and fisheries sector. The allocation for rural infrastructure development fund is proposed to be increased to Rs 40,000 crore by 2021-22.
Amith Aggarwal, CEO & Co-Founder, Agribazaar, said, “In Budget 2021, the government reinforced its commitment towards farmer welfare and upliftment of the agriculture sector. Whether through the continued efforts towards the digitisation of the agri-sector or the expansion of the Agri infra fund, I believe all the initiatives announced in the budget will augur well for India's farmers and farming industry over the short, medium and long-term.”
Nirmala Sitharaman announced that the National Apprenticeship Training Scheme, an initiative launched in 2016, will be amended to amplify apprenticeship opportunities for youth. Rs 3,000 crore will be spent on The Apprenticeship Act to provide post-education apprenticeship training to Engineering graduates and diploma holders.
P.C. Chhabra- Executive Director, Sanskriti University, stated, “The FM has allocated over INR 3000 crore funds with a forward-looking training plan towards the success of Atmanirbhar Bharat. Opening college in Leh, Collaboration with Japan for training and inter-training programmes to facilitate the transfer of Japanese industrial and vocational skills, techniques and knowledge are very positive.”
Rustom Kerawalla, Chairman, Ampersand Group, added, “The government’s decision to strengthen school education with the implementation of the National Education Policy across 15,000 schools despite the hurdles owing to the COVID-19 pandemic shows clear intent.”
The government has taken some bold steps such as a 34% year-on-year increase in infrastructure Capex to Rs 5.54 lakh crore. The National Infrastructure Pipeline (NIP) has been enlarged to cover 7,400 projects. The FM has also announced highway and road works in Kerala, Tamil Nadu, West Bengal and Assam.
Budget 2021 allocated Rs 1.1 lakh crore for Indian Railways. National Rail Plan created to bring a future-ready Railway system by 2030. Also, 100% electrification of Railways will be completed by 2023.
Aneel Gambhir, CFO, Blue Dart, said, “The proposed solutions include a succinct focus on improving road and railway infrastructure; investments in National highway corridors and economic corridors will aid in the speedy movement of goods and improve turnaround time which, in the long run, will bring down logistics costs significantly. The National Highway work planned in Tamil Nadu, Kerala, West Bengal, Assam will further assist in the final goal of last-mile delivery and we are eager to see its results on our business. In the long term, all the expenditures could be assisted with the proposed introduction of the DFI which will speed up the infrastructure development in India.”
In order to help apparel sector fight pandemic blues, the Union Budget 2021 has announced various schemes. The government has announced setting up of textile parks, PLI schemes, 5% customs duty on nylon and withdrawal of exemption of certain leather.
While presenting the Budget 2021-22, Finance Minister Nirmala Sitharaman informed that 7 mega textile parks will be introduced in three years as part of the scheme. The mega textile parks will be having integrated facilities and quick turnaround time for minimizing transportation losses, eyeing big-ticket investments in the sector.
The production-linked incentive (PLI) scheme, announced earlier for 10 key sectors including textile and automobiles, would help India become self-reliant, boost manufacturing and enhance exports.
Nirmala Sitharaman has announced Vehicle Scrapping Policy to replace old vehicles in order to boost demand for newer and less polluting vehicles. All vehicles will undergo a fitness test in automated fitness centres every 20 years (personal vehicles), and every 15 years (commercial vehicles).
The basic customs duty rate of certain auto components is increased from 10% to 15%.
Sunil Gupta, MD & CEO, Avis India, said, “We welcome the Union Budget tabled by the Finance Minister today, especially the announcement of voluntary scrapping policy. This comes in as a big support to automakers, who will benefit from this policy. Moreover, personal vehicles older than 20 years and commercial vehicles older than 15 years to undergo a fitness test are indeed focused on phasing out older vehicles. It will in turn promote the use of more eco-friendly vehicles.”
Sandeep Aggarwal, Founder & CEO Droom, stated, “Government extending the life of passenger vehicle and commercial vehicle by 5 years each is a good catalyst for the automobile industry. The vehicle is among the top 3 big-ticket items for any human being and larger economic life for it only means better ROI for the users. This also means the used automobile industry in India will be more robust in decades to come.”
The Finance Minister introduced a tax holiday for notified affordable rental housing projects. The affordable housing projects have been approved up to March 31, 2022, which was earlier March 31, 2021, and is eligible for a tax holiday
Ankush Kaul, President (Sales & Marketing), Ambience Group, said, "Increased focus on infrastructure growth and capital expenditure will impact the overall growth of the real estate sector too. A good infrastructure could propel the development of real estate, both commercial and housing, along the transit corridors, highways and newly proposed airports."
Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd, added, “Higher allocation to infrastructure, an extension of the exemption for the purchase of affordable houses till March 2022 and tax exemption to rental housing projects will provide the necessary boost to the ceramic industry.”
The FM has announced that the centre will launch the National Hydrogen Energy Mission in 2021-22 for generating hydrogen from green power sources.
The Budget also gave a boost to solar energy by proposing to provide a capital infusion of Rs 1,000 crore to the Solar Energy Corporation of India and Rs 1,500 crore to the Indian Renewable Energy Development Agency.
Sitharaman said in her Budget speech, “To build up domestic capacity, we will notify a phased manufacturing plan for solar cells and solar panels. At present, to encourage domestic production, we are raising duty on solar inverters from 5% to 20%, and on solar lanterns from 5% to 15%.”