Budget 2021-22, in the backdrop of the coronavirus pandemic, exhibits resilience. This Budget must not be looked in isolation. It is a cumulative effort of the five ‘mini budgets’ announced in the past few months. Ending the year with a 9.5 per cent fiscal deficit and yet again setting a target of 6.8 per cent for 2021-22 is a conscious and calibrated approach.

In fact, the six key pillars — health & wellbeing, infrastructure, inclusive development, human capital, innovation and R&D, minimum government & maximum governance — showcase the strategic intent of the government. From an ACE (appliances and consumer electronics) industry perspective, the PLI (production linked incentive) scheme continues to strengthen the manufacturing industry. Aimed at creating manufacturing global champions across 13 sectors with nearly ₹1.97-lakh crore in the next five years, it will further revitalise the ‘Atmanirbhar’ agenda for the ACE industry. Also, an increased focus on health and well-being of citizens and physical infrastructure allocations will give the necessary thrust.

Six strategic pillars

While the Budget reflects a progressive vision of the roadmap to a faster economic recovery focussed on the six strategic pillars, the industry is looking towards the implementation. For instance, the PLI scheme aims at creating jobs and addressing local demand, but we await finer implementation details. Similarly, the NIP (National Infrastructure Pipeline)has been expanded to 7,400 projects. This, along with the opening of economic corridors, expansion of highways, public transport and investment across Railways, to name a few, will help provide easy access to raw materials and improve the physical infrastructure.

Given the unprecedented conditions, the focussed measures in line with a clear roadmap to raise funds in the form of strategic disinvestments, tax compliance and borrowing outweigh the downsides. To elaborate, the creation of an asset reconstruction company and asset management company will help resolve the stressed assets problem of PSBs. In terms of taxation, there has been an array of initiatives to benefit individuals and industries alike. For example, the exemption from filing income-tax returns for senior citizens (75 years and above) who have only pension and interest income, no change in direct taxes, and extended eligibility for claiming tax holiday for start-ups by one more year will improve consumer sentiments.

Education and skills

Similarly, an astute focus on education and skills will significantly advance India’s human capital. The formation of a Higher Education Commission, realigning the National Apprenticeship Training scheme for graduates and diploma holders in engineering and partnership with the UAE and Japan in the area of skill development, to name a few, will have a direct impact on skill development.

I believe this is a critical step towards the re-imagination of a New World Order post pandemic. This Budget clearly reflected the government’s intentions — to revive the economy. Most importantly, the announcements removed the lingering fear of corporates, entrepreneurs and individuals, as it did not introduce any new tax.

Budget 2021, in my view, portrays the idea of a resilient India as the government reiterated its objective of strong economic recovery after major contraction due to the pandemic. It is a balanced combination of reforms and regulations, which will, in turn, boost various sectors along with manufacturing, contributing positively to India’s growth story.

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