The Finance Minister Nirmala Sitharaman’s second budget is perhaps the first Budget of the third decade of 21st century. Focusing on boosting consumption with a clear thrust on rural economy, there are several measures taken in the Budget, to transform India into a new trajectory of growth. Several proposals have been introduced to transform India through ease of doing business, quality infrastructure and the sprit entrepreneurship. Standing on three pillars – aspiration, economic development and caring society - this year’s budget offers very detailed road map to revive demand which has seen some erosion due to many reasons.
Considering the above, the Union Budget 2020-21 has tried to take a calculated path to revive demand and boost economic growth. The underlying assumption in the Budget’s economic strategy is that the economy appears to have bottomed out and is expected to pick up in 202021. For long term investors, this could be the right time to position their savings for expecting a decent return on their investments.
The Budget has given massive thrust to capital formation in rural sector. There are several innovative features in the Budget. The NBFC sector has been further supported in the Budget. A new scheme to provide subordinate debt with quasi-equity feature for entrepreneurs of MSMEs by the banks is also proposed. The Budget has also suggested digital refund of duties and taxes levied at the Central, State and local levels, which are otherwise not exempted or refunded for exporters. This will reduce the cascading impact of hidden taxes in inputs for exporters and increase the competitiveness of exports.
This story is from the February 2020 edition of Investors India.
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This story is from the February 2020 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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