Three key issues Budget 2021 should focus on
All eyes are on the budget as the government walks a tightrope of balancing growth and fiscal concerns. Effective implementation of the proposed budget will be key
- Jan 13, 2021,
- Updated Jan 29, 2021 2:10 PM IST
The changing norms in the world post-COIVD-19 have forced businesses to change their ways of doing business. As India gradually turns towards the road to recovery, consumers, businesses, and industries are expecting measures and relief in the Union Budget 2021 that can help them outmanoeuvre pandemic-related challenges and thrive in the future. We expect the government to focus on three key issues.
Enhanced value addition in industries, including MSMEs, might be the third focus to enhance India's share in the global export market and move up the global value chain. The government may promote specialisation and investment in sectors where India has a competitive advantage and that are labour intensive. Schemes to improve local networks and efforts to expand economic corridors in Tier 2 and 3 cities should be considered, especially when virtual working is opening up opportunities. Sops and incentives to scale-up facilities, allocations for building IPR and promoting innovation, favourable trade policy announcements, and measures to address logistics and coordination costs associated with world-class transport and communication may get addressed in the budget.
All eyes are on the budget as the government walks a tightrope of balancing growth and fiscal concerns. Effective implementation of the proposed budget will be key.
(The author is Economist, Deloitte India.)
The changing norms in the world post-COIVD-19 have forced businesses to change their ways of doing business. As India gradually turns towards the road to recovery, consumers, businesses, and industries are expecting measures and relief in the Union Budget 2021 that can help them outmanoeuvre pandemic-related challenges and thrive in the future. We expect the government to focus on three key issues.
Enhanced value addition in industries, including MSMEs, might be the third focus to enhance India's share in the global export market and move up the global value chain. The government may promote specialisation and investment in sectors where India has a competitive advantage and that are labour intensive. Schemes to improve local networks and efforts to expand economic corridors in Tier 2 and 3 cities should be considered, especially when virtual working is opening up opportunities. Sops and incentives to scale-up facilities, allocations for building IPR and promoting innovation, favourable trade policy announcements, and measures to address logistics and coordination costs associated with world-class transport and communication may get addressed in the budget.
All eyes are on the budget as the government walks a tightrope of balancing growth and fiscal concerns. Effective implementation of the proposed budget will be key.
(The author is Economist, Deloitte India.)