Union Budget 2022: Sectorial Expectations

There are a lot of expectations from Budget 2022 as people from various sectors are pinning high hopes on our government, let us see what the expectations from the budget this year are.

The Indian economy is still recovering from the COVID-19 and the growing demand for healthcare services has underlined the need for more budgetary allocation in the healthcare sector to build a robust healthcare system. This can be done by allocating funds for the development of resources, granting more funds for genetic research, and providing support and incentive schemes to Indian startups.

The upcoming budget would be critical in restoring India's pandemic hit on MSMEs and the manufacturing sector. It is expected that stimulus for startups and locally created goods to minimize import reliance and support the 'Make in India' effort would be continued. Also, simplifying approvals, compliance for ease of doing business, and using automation for traditional retailers can be expected.

The automobile sector, which makes a significant contribution of close to half of industrial GDP and about 7% of overall GDP, needs a long-term strategy outline for a robust recovery after a rise in commodity prices. We are expecting that this Union Budget includes lowering of GST rates on raw materials, and support for R&D and indigenous technology development.

This year the real estate sector wants the government to go beyond the usual expectation of single-window clearance and industry status. Hence, the extension and continuation of tax sops, government’s intervention to help avail the funding from banks and NBFCs, and incentives to homebuyers by redefining affordable housing which will further enhance the rudiments of the real estate sector.

And at last, the popularity of cryptocurrency has skyrocketed in India. All the investors have set their eyes on the Crypto Industry. While the government is waiting on the cryptocurrency bill, insiders in the crypto industry, investors, and traders are expecting this Union Budget to provide much-needed clarification on cryptocurrency taxation.

Let us see how these expectations are met by the finance minister in this Budget.

Meanwhile, comment and let us know what your expectations are…

Thank you.

Regards,

Virender Udherani,

Kautilya,

IBS Mumbai.