In his remarks after the Union Budget was tabled in the Lok Sabha, Prime Minister Narendra Modi said that the Budget carries a vision of Aatamnirbharta and inclusion of every citizen and section.
He added that the Budget will lay a strong foundation for the new decade and congratulated the countrymen for a Budget for Aatamnirbhar Bharat.
Taazakhabar News spoke to a cross-section of people to get a glimpse of the public opinion about how the Budget 2021 centred around the common man and his needs. Here’s what the opinion leaders in different sections of the society have to say about the budget.
REAL ESTATE AND URBAN DEVELOPMENT
Dhaval Monani Director of Affordable Housing and Associate Professor at Anant National University
The budget fy2022 came in on the back of a historic contraction of GDP due to the pandemic. The real estate sector coming out of a prolonged slowdown had a long wish list that was largely ignored. There was though a very important big bang reform that should potentially be a game-changer.
The Finance Minister announced the setting up of a bad bank that will take stressed assets off the balance sheet of banks and restructure them. One of the biggest challenges for real estate has been the difficulty in access to capital. Resolution under the Insolvency and Bankruptcy Code (IBC) takes on an average 400 days and in the best of cases has recovered about 65% of the capital. In 2020 Rs. 5 lac crore worth of projects with struck and facing bankruptcy across various markets. The proposed structure will not just clean up the balance sheet of banks and make them free to lend but find a resolution for stressed assets in a faster and efficient way.
The extension of income tax exemption under section 80IB (A) and extra Rs. 1.5 lac exemption under section 80EEA were on expected lines. This year could well be the year of consolidation for the sector as stalled projects get revived and we see growth reviving with better access to capital.
Ar. Dikshu Kukreja, Principal Architect & Urban Designer, CP Kukreja Architect
“As India strides towards urban development and as the population of the country moves towards cities, with urban migration continuing unabated, it is expected that within the next ten years, 40 per cent of the country’s population would be living in cities. This means that we would be requiring a size equivalent to a new Chicago metropolitan area every year to take care of the large population accumulation due to this urban migration. It is therefore imperative that we spend the budget with a thrust on the urban improvement strategies, in addition to some policies which are already in place such as AMRUT, Smart Cities, etc.
These also need to be implemented with a special focus on aspects of environmental issues such as quality of air and water, land and our natural resources. We cannot continue to wait and watch as our cities and the quality of living deteriorates and becomes a health hazard for all. For the country to progress, the thrust has to remain on infrastructure; one expects more to be spent on education (schools, skill centres etc.), healthcare, public transportation which are going to be the main drivers of the economy in the coming years.”
HEALTHCARE SECTOR
Akahy Daftary, Director, SIRO Clinpharm
“In this year’s budget, the Honorable Finance Minister considered Health and Well-being sector as the first pillar which is very encouraging for healthcare and nutraceuticals sector professionals. The announcements made by the FM especially for the healthcare sector in terms of promised reforms and anticipated conducive measures to boost domestic manufacturing of the medical devices along with the emphasis on preventive care, PPP in Ayushman Bharat, expansion of Jan Aushadhi Kendra in all districts to provide medicines at affordable rates, etc are very promising and will provide impetus to the growth of the sector in the long run. The allotment of Rs 3000 crore funds under skill development is a positive move by the government in terms of recruiting people since the EMS (Emergency Medical Services) industry demands skilled individuals in paramedics as they are the ones driving the sector and hence play a vital role in saving lives. The allocation of Rs 35,000 crore for COVID-19 vaccines was much needed as it is the need of the hour. Additionally, the allocation of Rs 69,000 crore to healthcare is again something that is commendable and a heartening measure announced by the FM for the development of the healthcare sector.
Overall, Budget 2021 is realistic, positive, and holistic at the same time, centred around the common man and his needs.”
FOOD; AGRI AND ALLIED SECTOR
Ravichandran Purushothaman, President, Danfoss Industries Pvt. Ltd. (India Region)
The Union Budget this year has been a welcome one. As we reflect on the budget, we must bear in mind that the reform initiatives undertaken by the government last year have worked well, and between the last budget and this, there have been several smaller provisions and fiscal incentives provided for the sector. Despite the pandemic, the farm centre and the processing industries have responded well, wherein we continue to see good demand and the CAPEX cycle picking up. Connecting 1000 more mandis to E-Nam is a bold move by the government this year, as removing the middlemen offers a great opportunity for price discovery by farmers, and strengthens their pricing abilities. The increase in provision for rural infra development fund from INR 30,000 crore – INR 40,000 crore as well as the doubling of the Micro Irrigation Corpus to INR. 10,000 crore reflects positively on the future outlook of the agri-food sector. Further, the extension of the agri infrastructure fund to APMC’s is a step in the right direction. The efficacy of the current agri credit target for FY 22 and the announcements for welfare schemes to incentivise the agricultural economy towards increasing output and quality remains to be seen.
To further accelerate the growth in the industry, the government has increased investments in the dairy sector. The plans to modernise key fishing harbours such as Kochi, Chennai, and Vishakapatnam, etc. and the improvement of indigenous fishing harbours as hubs for increased economic activity necessitates deeper localisation and R&D growth in the fisheries sector for future prospects for increased productivity and profitability.
