Coming in the wake of the very challenging times of the pandemic, Budget 2021 has rightfully focused on fuelling growth and investing deeply in infrastructure. It has set right the strategic directions to overcome the effects of the crisis brought about by the pandemic, and places due emphasis on quickening economic recovery, boosting domestic output and creating jobs.
It is a well-delivered budget, focusing on six crucial pillars, unlocking new opportunities for the ‘Make in India’ initiative, and providing the right impetus to strengthen India’s vision of growth in the coming years. The thrust on physical and digital infrastructure, health and well-being, MSMEs, startups, innovation and R&D, and the national language translation mission augurs well for inclusive financial development.
All these announcements are aimed at revitalising the economy. The measures announced to boost sectors such as textiles, automobiles, and healthcare will have a massive multiplier effect on job creation and economic activity. It is an encouraging budget for the startup ecosystem as well, with the extended tax holiday and the steps allowing one-person companies to grow, providing them with some much-required relief.
The reassurance provided by the finance minister to the MSMEs is heartening. The financial support announced for MSMEs will aid their recovery, and complement government efforts from last year. These steps will make it easier for MSMEs to improve productivity and benefit from the digital transformation that is under way across the nation. Budget 2021also lays down a promising roadmap of growth and opportunities for today’s young and aspirational India. Financial inclusion will result in greater ease of doing business. The National Language Translation Mission exhibits a strong sense of commitment in this direction.
Ecommerce has played an integral part in building resilience in the economy, especially for MSMEs, and budgetary allocations will further help to augment the MSME sector in the country. The measures announced to widen the base of foreign investment in infrastructure will provide further impetus to economic activity. By incentivising digital payments, finance minister Nirmala Sitharaman has taken yet another important step in accelerating the progress toward a truly digital India.