Saturday, July 2, 2022

Modi Govt’s 8th Budget Aims To Fulfill Everyone’s Hopes & Dreams, But Some Remain Unfulfilled

Modi government’s 8th budget has, as usual, invited extreme reactions from every sphere of social life. Depending upon which side of the politics you are on, this budget, just like the last 7 under the BJP regime, is politically significant, more than anything else. When the Finance Minister Nirmala Sitharaman presented Union Budget for fiscal […]

Modi government’s 8th budget has, as usual, invited extreme reactions from every sphere of social life. Depending upon which side of the politics you are on, this budget, just like the last 7 under the BJP regime, is politically significant, more than anything else.

When the Finance Minister Nirmala Sitharaman presented Union Budget for fiscal year 2022-23, it was evident from the beginning that infrastructure spending was a major focus for Asia’s third-largest economy, which wanted to beat the pandemic and generate a recovery model for the coming financial year. In order to boost the economic growth, India’s annual spending was proposed to be increased upto Rs 39.5 trillion ($529 billion) so that the growth plans of PM’s ambitious government programs didn’t face any hiccups in the near future. There is no doubt that the upcoming elections in the five states of Uttar Pradesh, Punjab, Manipur, Uttarakhand and Goa were kept in mind to prepare the federal budget.

However, it would be better to take a look at what was announced today in the Parliament, before forming an opinion about Budget this year –

WINNERS

Sectors like Battery manufacture, transport, infrastructure, metals, solar, cement, construction, telecom, digital finance, and defense production remain clear-cut winners as per the new budget. A look at who is set to gain the most from the budget –

India will keep its commitment to clean energy with battery makers set to gain from the new swapping policy regarding electric vehicles.

With 400 new “Vande Bharat” trains to run all over India in the next 3 years, infrastructure players as well as state, through Indian Railway Catering as well as Tourism Corp are geared to put their best foot forward.

After giving the general public toilets and cooking gas, the government’s next step was allocation of Rs 600 billion to take piped water to more than 38 million households. This step, in turn, will benefit metal producers, no doubt.

Another aspect of green energy commitment is promoting use of solar energy. This is why the government is keen to promote local manufacturers in this field through incentives worth Rs 195 billion for solar modules.

More homes for low-income families will mean more work for construction giants in the country.

The much-awaited 5G auctions are set to take place this year, in 2022, which is why data storage needs sufficient infrastructural support, which is why the concerned companies will have their work cut out for the coming year or two.

India is growing in its geo-political clout, which requires sufficient defense engagement by way of equipment manufacturing and new technologies like drone start-ups.

 

However, as is known, the budget couldn’t keep everyone happy despite FinMin Sitharaman trying hard to do so. So, here is a look at who won’t be too happy with today’s Union Budget –

State-run banks, which have been the archaic lenders in the country, are finding it hard to keep pace with the global speed of the digital currency promotions.

Crypto-currency lovers will have to shell out 30% tax on profits earned through such digital asset transactions as India warms up to this new-age currency.

Traditional fuels will take a backseat as India proves to the world that it remains committed to clean and green energy generation.

While the global auto-industry reels under a major crunch of semi-conductor chips shortage, Indian industry is no different. In fact the S&P BSE Auto Index was one of the worst performers after today’s budget announcement.

In a country as diverse and full of contradictions as India, a single Union Budget may find it difficult to keep everyone happy but as long as it gives something to everyone instead of aiming to give everything to everyone!

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