Budget 2021: Industry Outlook

Budget 2021

Team NewsBarons connect with various industry leaders to understand their views on the announced Union Budget 2021 and its impact on their respective sectors.

The economy will surely boost: Rajeev kapur, Steelbird Helmets

www.newsbarons.comI believe the budget is being appreciated by each and every sector. The decision of investing in many sectors by the government will lead to more employment which will generate fund flow.

Due to this, this year the economy will surely boost. Being a two wheeler segment, the Auto industry is already on the blooming side and will be on this side this year too. We welcome and appreciate the budget announced by Hon’ble FM Nirmala Sitharaman. I would request to consider the helmet as a safety product and decrease the GST on the same, as Helmet is a life saving device.

The Union Budget has laid a significant focus on healthcare: Dr. K Anand Kumar, Indian Immunologicals

Budget 2021The Union Budget has laid a significant focus on healthcare which would strengthen the foundation of a healthy nation. With an increase of 137% from last year, the allocation of INR 2.23 lac crores for the primary, secondary and tertiary healthcare along with the steps to set up health and wellness centres across the country will immensely help especially the economically weaker section of the society making quality healthcare more affordable. Making specific funds available for the vaccination for COVID-19 as well as pneumococcal will help to combat the pandemic and save precious lives. It is really encouraging that the government is trying to promote the growth of hospital infrastructure through PPP mode.

The budget was largely disappointing for real estate industry: Anuranjan Mohnot, Lumos Alternate Investment Advisors

The budget was largely disappointing for real estate industry which was expecting major boost from this budget by way of some major relief in personal income tax or input credit under GST for the real estate projects.

However, provisions like establishing “Bad bank” would expedite resolution of stressed real estate assets, monetisation of PSU land bank will bring substantial land supply in major cities , extension of tax exemption of affordable housing projects and additional interest deduction under section 80EEA is major relief to this segment.

Ahmedabad is poised to become now major IT hub the country with major real estate transactions taking place at GIFT city and now government pushing GIFT city to be a wold class FINTECH hub through tax concessions in this budget.

Budget has immensely focused on the effective implementation of National Education Policy: Jerold Chagas Pereira, mPowerO

Budget 2021The previous year has not only changed education as we know it, but it has also persuaded all the educational stakeholders to find better digital learning solutions. Budget 2021 has immensely focused on the effective implementation of National Education Policy and reinforce the skill development process of the global education standards. The budget allocation for 15,000 schools to be worked as a model for the NEP implementation across the country is a welcome move for new age education and an indicator of the commitment of the government to the NEP. However, some tax concession to the education industry would have helped them to combat the financial challenges they are reeling through and resulted in enabling them to allocate higher funds for implementing digital learning solutions benefiting the students cover up the lost time due to the pandemic in an efficient manner.”

A promising step towards encouraging the enterprise startup sectors: Parikshith Reddy, Zippr

Budget 2021The announcement by Honorable Finance Minister Nirmala Sitharaman to set aside Rs 15,700 crore in FY22 for the MSME sector and benefiting the startups with a turnover of up to Rs 100 crore in terms of the tax liability is a promising step towards encouraging the enterprise startup sectors that forms the base to India’s economic development. These steps are centrifugal to a long-term vision of Atmanirbhar Bharat, make in India mission, and summing up everything towards India’s $5 Trillion Economy vision.

The ₹1.41 lakh crore Urban Swachh Bharat 2.0 mission over five years announced today is another step towards building better cities for the natives. As the UN report indicates that by 2030, over 40 per cent of India’s population will be found in its big cities, the Urban Swachh Bharat 2.0 is indeed a concrete step towards making better and healthy living possible. Being a global leader in smart addressing, we look forward to continuing and multiply our assistance with Digital Door Numbering Technology to the State Governments, Municipal Corporations in this mission by enabling them to digitize the current complex addressing system and bringing in transparency for better Government services including waste management system, pipeline construction, emergency services, and public planning, property taxation amongst others as part of Government services.

The Union Budget 2021-2022 has a pragmatic approach to revive the COVID-19 hit economy: Ameen Khwaja, pTron

Budget 2021While the budget stressed on Atmanirbhar Bharat and Make in India, it is important to note that the costs would only increase in the immediate future for the existing players in Consumer Electronics Industry. An increase in import duties is a welcome move towards Atmanirbhar. However, considering that the current availability of technical skill and machinery isn’t strong, the industry is likely to witness a struggle in the short-run due to an increase in cost for importing components and parts leading to an increase in the manufacturing cost for the players in the market.

The start-up community welcomes the move of one-person companies: Kapil Jain, Graphitto Labs Private Limited

Budget 2021The start-up community welcomes the move of FM on proposing the incorporation of one-person companies with no restriction in paid-up capital and turnover, as well as on decriminalization of limited liability partnerships, with the flexibility to convert a company to any form or LLP. This will benefit thousands of start-ups as it will ease the compliance burden. During the lockdown, many startups were on a verge of closure, hence reducing compliances will certainly help the startup community in a very big way.

The Budget has shown that the government is looking at promoting indigenous EV industry: Ankit Kumar, CEO, Gozero Mobility

First is the Voluntary Vehicle Scrapping Policy, with the intention to phase-out vehicles that are poor in fuel efficiency off the roads. This policy would incentivise owners of old vehicles, which are usually the ones that fit the bill, to voluntarily give up their vehicle for scrap and look towards newer vehicles and more innovative mobility solutions. This policy would definitely push the EV industry more into the limelight as the public now has more reason to evaluate the economic feasibility of EVs and e-micro mobility options like e-bikes.

Secondly, Rs. 2217 crores have been allocated to tackle the plaguing issue of air pollution, targeting 42 cities that have a population of more than a million. This mission would definitely entail the promotion of sustainable transportation, as vehicular emissions constitute a major share in our cities’ air pollution. Also coupled with the Vehicle Scrapping Policy, the auto industry can be optimistic about seeing the rise of charging infrastructure, and bicyclists and e-bikers could see their dreams of bicycle friendly streets being fulfilled.

Thirdly, the National Hydrogen Mission with the proposal to draw energy from renewable sources ensures that the entire value chain in energy consumption, including for
electric vehicles, would be as carbon neutral as possible.

The auto and micro-mobility industry are still holding out hope for more reforms relating to tax structure and import duties on raw materials and components to become more friendly in following announcements in the coming months. Seeing the pledge taken by the government in this Budget, the industry believes that its hopes would be fulfilled this year.

Renewed trade flows will come into existence with reduced dependence on China: Capt Rahul Bhargava, Essar Shipping Ltd.

Budget 2021FM has announced a new scheme to be launched for flagging of merchant ships in India by providing subsidy support to Indian Ship owners. Fund allocation is ₹ 1624 crore to be provided over 5 years. This will give boost to Indian ship owners in acquiring ships to service tenders floated by Ministries, resulting in increase of Indian flag ships. With increase in fleet, more job opportunities will be created.

Job creation has been one of the foremost agenda under the Budget, FM announced Indian ship recycling has acceded to Hong Kong Convention. Most of the recycling yards are now compliant to new convention. By 2024 the capacity of the yards will be doubled, leading to creation of skilled and unskilled jobs.

SCI privatisation as part of the disinvestment scheme of the government of its CPSE units is likely to bring more efficiency & the improvisation in business & operations from India. The privatisation will bring in foreign investments that will have an overall improved impact in the Indian shipping industry.

Under the AatmaNirbhar Bharat programme, renewed trade flows will come into existence with reduced dependence on China.