With the announcement of the Union Budget 2021, the Finance Minister has taken the monumental task of providing stimulus to consumer demand as well as taken the economic environment head-on, aiming for a fiscal deficit of 6.8 percent of GDP whilst not making any major change in the taxation structure. Considering the challenges at hand in the face of the pandemic and the slowdown pre-Covid, the budget is well balanced, focusing on key measures including a clear spending focus on health care, vaccination and development of physical infrastructure. It prioritises spending to revive the economy after an unprecedented crisis, despite limited fiscal headroom, which is certainly a big positive step, and will aid the industrial sentiment in India greatly. It has also detailed out inclusive development plans for the agricultural sector and this should help in sustaining the momentum of rural growth.
“Overall, this Union Budget ticks most of the right boxes with an encouraging capital infusion in infrastructure and funding the same through prudent borrowing, divestment and restructuring of allocations without impacting consumers negatively. I believe that, going forward, this will bode well for generating demand, driving consumption and sustaining the growth momentum needed to revive the economy,” says Saugata Gupta, MD and CEO, Marico Limited.
"We welcome the Union Budget 2021’s focus on furthering India’s AtmaNirbhar agenda and setting it on a growth trajectory in the backdrop of a pandemic. The massive increase in healthcare infrastructure funding coupled with focus on cleaner air, waste management, nutrition and water through the Jal Jeevan mission are crucial steps in improving overall health and living index. Additionally, sustained investment in overall infrastructure development and an emphasis on asset monetization will improve overall utilization and competitiveness. Steps to improve ease of doing business and efforts towards aiding start-ups, MSME and R&D will drive greater local innovation and value addition. All of the above will eventually push up consumer demand and further the country’s transformation towards a globally competitive economy,” adds Ahmed ElSheikh, President, PepsiCo India.
FM has enhanced the agricultural credit target to Rs 16.5 lakh crore in FY22 which will pave way for larger participation of farmers into dairying that has a very sustainable business model at village level.
"This Government’s commitment to the welfare of farmers is inspiring and their efforts to rejuvenate the MSP regime to assure price that is at least 1.5 times the cost of production across all commodities is going to put lots of money in the farmers kitty that will result in huge rural upliftment," say Jai Agarwal and Anuj Agarwal, MD, Gyan Dairy.