Nagpur: With the 2021 budget due on Monday, traders across the country are expecting relief from the finance minister. After the prolonged recession devastated by the novel coronavirus pandemic, says Dipen Agrawal, president of the Maharashtra Industry & Trade Association (CAMIT).
Agrawal said that shortly after the budget last year, the health crisis “Covid-19 pandemic” began before the world including India. In the absence of medication, the only solution available was containment, i.e. social distancing and disconnection. Initially, the impact was seen as a supply-side crisis with a decline in manufacturing, but after the containment was removed and we resumed it, it turned into a demand-side shock as incomes fell. The government has tried to turn this crisis into an opportunity to ensure that the people of India are consuming products made in India and becoming part of the global supply chain.
Agrawal added that today Nirmala Sitharaman expects Finance Minister Nirmala Sitharaman to get the economy going again. To revitalize the economic real estate sector, the country’s second largest direct and indirect employer, accounting for around 10 percent of GDP, deserves serious attention in the upcoming budget. FM should also consider incentivizing alternative asset classes like warehousing, data galleries, and collaborative spaces to build momentum on both the demand and supply sides. Currently, both MSME and mega industries are feeling the heat of the rise in raw material costs. FM has to create a balance.
These measures will help boost retail sales / consumption, which in turn can provide a huge boost to trade and economic activity. He also said FM should streamline non-corporate and personal income tax rates. FM should improve the exemption levels for individuals, particularly the health insurance premium, in the given situation. I am positive and see this as a directional budget, he said.
Covid-19 has an impact on the country’s life, businesses, and economy. The expectations for the upcoming EU budget in 2021 are high. In the short term, the government must spend more and do more with less with an expected loss of revenue. The government must briefly support the demand and spend it with open hands, but with caution. We firmly believe that reforms will pay off with a delay. India had seen major reforms in 1991, but growth reached 8 percent after 2000. For growth to return to 8% plus, reforms should continue and it shouldn’t be a single event.