rebuilding india
rebuilding india
Budget Player

Budget and Impact on Sectors

Consumer Goods

Cellphones, ACs, leather costlier, gold, Naptha, nylon cheaper

Cellphones, ACs, leather costlier, gold, Naptha, nylon cheaper

The FM has made a series of changes in the customs duty imposed on imported products and components.

impact

An immediate price increase for ACs and refrigerators. Gold, silver and other precious metals would become cheaper.

stocks to watch for

Public Companies

Privatisation no longer a dirty word

Privatisation no longer a dirty word

IDBI Bank apart, the FM proposes to push privatisation of 2 public sector banks and 1 general insurer. Disinvestment in all non-strategic and strategic sectors.

impact

Govt to stay out of businesses it had no business to be in.. More jobs and better allocation of public funds.

stocks to watch for

Steel sector

A mixed bag for steel industry

A mixed bag for steel industry

The FM has opened the gates for imports of different kinds of steel and stainless steel products by reducing duty.

impact

Cheap scrap may help reduce costs of the smaller steelmakers. Both, prices and demand may see an impact.

stocks to watch for

Healthcare

Healthcare gets double booster

Healthcare gets double booster

FM proposes to double spending on healthcare, finally giving the sector its due in a pandemic year.

impact

Creaking public health system to be improved. Covid immunisation plan is allotted Rs 35,000 crore.

stocks to watch for

Auto

A voluntary vehicle scrapping policy

A voluntary vehicle scrapping policy

Aim is to phase out old and unfit vehicles. Vehicles would undergo fitness tests in 20 years in case of private vehicles.

impact

Fitness testing for both PVs and CVs a positive move to create employment and demand for cleaner cars.

stocks to watch for

Financial markets

Creation of Developmental Financial Institution

Creation of Developmental Financial Institution

A vital element of the slew of measures in the budget to shore up infrastructure is the creation of a Developmental Financial Institution (DFI).

impact

A DFI will help the government gather investments for infra projects. Benefits? More jobs and spending boost.

stocks to watch for

  • 1326.20
    15.75 (1.20%)
  • NCC
    76.40
    -0.30 (-0.39%)

Energy

Scheme to assist Discoms will be launched

Scheme to assist Discoms will be launched

Scheme to assist Discoms will be launched with an outlay of over Rs 3 lakh crore.

impact

The plan for a framework that helps consumers choose their electricity supplier will unleash competition.

Infra

Big Push For Infrastructure

Big Push For Infrastructure

The FM has ticked all the infra boxes, allocating money for a raft of sectors such as power, rail, roads, metros, clear water, solar energy etc.

impact

Public spending could boost growth in the medium term. Spending push is rural areas can amplify demand, create jobs.

stocks to watch for

Education

Missing—big-box reforms

Missing—big-box reforms

The FM has set aside Rs 93,224 crore for education, including for rolling out National Education Policy 2020.

impact

Fresh funds for digital education via the NDEAR could help give a major fillip to this segment.

Income Tax

Senior citizens don't have to file tax returns

Senior citizens don't have to file tax returns

Senior citizens who are above 75 and only have pension and interest income will not have to file income tax.

impact

The bank paying income to them will deduct the necessary tax from their bank account.

IT

Gains from digital projects

Gains from digital projects

A plan (finally!) to recast the Corporate Affairs Ministry’s website leveraging new age technologies like artificial intelligence and machine learning.

impact

Potentially more business for IT companies. Research funding is good for innovation and to increase exports.

stocks to watch for

  • TCS
    3140.95
    -20.85 (-0.66%)
  • 1350.00
    -12.55 (-0.92%)

Bad Bank

Bad bank to ease NPA stress

Bad bank to ease NPA stress

The FM announces ‘bad bank’ to address the problem of stressed assets of banks. To be set up through an Asset Reconstruction Company (ARC) model.

impact

A major boost for bad asset resolution in the financial system, which will allow banks to focus on new business.

Startups

Small But Meaningful Changes

Small But Meaningful Changes

One more year of tax holiday, LTCG exemption, a push for one-person companies, potentially egging NRIs to become entrepreneurs. Social security for gig workers.

impact

The government has given some helpful measures. More protection for gig workers can spur big hiring.

Affordable housing

Deduction on payment of interest

Deduction on payment of interest

The deduction on payment of interest for affordable housing has been extended by 1 year.

impact

A tax exemption for notified affordable housing for migrant workers will help the poor.

stocks to watch for

Real Estate

Cheer for Homebuyers

Cheer for Homebuyers

Additional Interest deduction (Sec 80EEA) of Rs.1.5 lakh for affordable housing to be extended for loans taken till March 31, 2022.

impact

It will help homebuyers and a boost to government’s housing for all mission. Will also help real estate sector.

Aviation

Tax exemption on aircraft lease rentals

Tax exemption on aircraft lease rentals

The government announces tax exemption on aircraft lease rentals paid by air carriers to foreign lessors.

impact

A relief for the aviation sector that has been ravaged by the coronavirus.

Farm sector

Higher allocation, cess boost

Higher allocation, cess boost

Outlay for agriculture and rural sector increased to Rs 16.5 lakh crore against Rs 2.83 lakh crorein the previous budget.

impact

It will boost farm income, which in turn will help demand which the economy badly needs.

Financial Markets

Good news for insurance sector

Good news for insurance sector

Foreign Direct Investment (FDI) in insurance companies has been raised to 74 percent from 49 percent.

impact

Insurance will become more competitive. That is good news for customers as cost of insurance products will fall.

stocks to watch for

Union Budget 2021 Highlights

Union Budget 2021 LIVE: Union Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget 2021 and revised the expenditure target for FY 2021 at Rs 34.50 lakh crore. She allocated Rs Rs 2,23,846 crore for health, Rs 1.18 lakh crore for road infra, Rs 1,10,055 crore for Railways, Outlay over Rs 3 lakh crore for power and set the divestment target for FY22 at Rs 1.75 lakh crore, among other things.

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Madras Fert 24.30
0.45 (1.89%)
ITC 204.65
-0.95 (-0.46%)
Titan Company 1549.05
30.35 (2%)
HPCL 233.20
1.90 (0.82%)
TCS 3141.95
-21.15 (-0.67%)
Indiamart Inter 7768.30
17.50 (0.23%)

State of The Economy

GDP growth dipped even before COVID...

GDP growth dipped even before COVID...

as private consumption too slowed...

as private consumption too slowed...

...and manufacturing remained in dire straits

...and manufacturing remained in dire straits

High inflation crimps space for further rate cuts

High inflation crimps space for further rate cuts

Although RBI has cut repeatedly during the past 2 years...

Although RBI has cut repeatedly during the past 2 years...

...bank credit growth remains tepid

...bank credit growth remains tepid

The tax bases has not broadened as much as desired...

The tax bases has not broadened as much as desired...

.. and the fiscal deficit is putting pressure on interest rates...

.. and the fiscal deficit is putting pressure on interest rates...

The govt's debt burden too is expected to climb

The govt's debt burden too is expected to climb

Top News Budget 2021

Presented by adda 52
Presented by adda 52

Corporate tax collection in FY2021-22 expected to be better than pre-COVID collections: CBDT chief

Speaking to Moneycontrol, the Minister of State for Finance said that while the medium term fiscal deficit targets till 2025-26 seem challenging, the Modi government has had a proven track record of fiscal discipline.

Corporate tax collection in FY2021-22 expected to be better than pre-COVID collections: CBDT chief

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Opinion

Budget 2021 expectations | Govt support may be required again to recapitalise public banks

Budget 2021 expectations | Govt support may be required again to recapitalise public banks Though the GoI as a backstop for capital requirements does add to the comfort of public banks for their regulatory capital requirements, their weak capital position and the inability to raise capital from the markets have much larger consequences.

Budget 2021: Life insurers seek separate tax carve-out for products to boost penetration

Budget 2021: Life insurers seek separate tax carve-out for products to boost penetration The industry feels this will allow policyholders to diversify their investments into various life insurance products to meet their financial goals while availing of tax benefits. Currently, life insurance premium is eligible for tax exemption under Section 80C, which has a limit of Rs 1.5 lakh annually, but also clubs other investment options such as PPF, EPF, and NSC, among others.

Budget 2021 | Expectations from the technology sector

Budget 2021 | Expectations from the technology sector While the government is likely to incentivise each sector, as the global epicentre for information technology, performance of the Indian IT industry is likely to be crucial

Budget 2021 expectations | Reducing cyclicality of rural household income may get priority

Budget 2021 expectations | Reducing cyclicality of rural household income may get priority Taxing cigarettes comes as an easy alternative to garner additional revenues. Grant of infrastructure status for hotels, restaurants would lower the cost of funds.

Budget 2021 expectations | Focus on agriculture to continue, Budget to be pivotal for fertiliser industry: ICRA

Budget 2021 expectations | Focus on agriculture to continue, Budget to be pivotal for fertiliser industry: ICRA ICRA expects budgetary allocations towards the entire agricultural value chain to improve productivity and reduce post-harvest losses, while ensuring adequate realisation for the farmers

Budget 2021 expectations | Government should avoid sharp fiscal tightening

Budget 2021 expectations | Government should avoid sharp fiscal tightening For the GoI, a revenue deficit of 3.5 percent of GDP and a fiscal deficit of around 5 percent of GDP in FY2022 may allow enough space for prioritising health expenditure, vaccine rollout as well as capital spending.

Budget 2021 expectations | Structural reforms to continue in aviation; industry awaits cost breather

Budget 2021 expectations | Structural reforms to continue in aviation; industry awaits cost breather The industry expects financial aid and reduction in levies and taxes in the immediate near term to revitalise operations and boost passenger traffic, while in a longer time frame, the government needs to address India’s aviation infrastructure requirements.

Budget 2021 expectations | Scrappage policy, PLI scheme to put automotive sector in fast lane

Budget 2021 expectations | Scrappage policy, PLI scheme to put automotive sector in fast lane The automotive industry faced strong headwinds during FY2020 with the slowdown in economic activities during H2 FY2020, exacerbated by the NBFC crisis, which affected demand significantly.

Budget 2021 expectations | Retail industry eyes govt measures to spur spending

Budget 2021 expectations | Retail industry eyes govt measures to spur spending There is a case for the government to relook at the existing FDI policy for multi-brand retail trade and raise the cap of FDI from the current level of 51 percent under the approval route.

Budget 2021 expectations | Farm gate infrastructure development can give agriculture sector fresh fillip

Budget 2021 expectations | Farm gate infrastructure development can give agriculture sector fresh fillip The formation of 10,000 new farmer producer organisations as proposed for fiscal 2021 can cater to only seven percent of the farming population. Also, the existing FPOs lack capacity, leadership and basic infrastructure for effective market participation.

Budget 2021 expectations: Pharma industry seeks steps to reduce dependence on API imports from China

Budget 2021 expectations: Pharma industry seeks steps to reduce dependence on API imports from China It is expected that the government will continue to focus on reduced import dependence, and encourage investments to boost R&D and capital expenditure.

Budget 2021 expectations | More income tax incentives for housing purchase necessary to revive realty sector

Budget 2021 expectations | More income tax incentives for housing purchase necessary to revive realty sector The affordability of housing projects had been one of the major constraints for demand. Various states had provided time-bound relaxation in stamp duty on housing purchase, which was seen to have a positive impact on sales. The budget could consider further steps to improve affordability.

Budget 2021 expectations | Transporters' profitability hinges on reduction in excise duty on diesel

Budget 2021 expectations | Transporters' profitability hinges on reduction in excise duty on diesel Freight demand revival, which will improve transporters’ profitability, depends on recovery in economic growth and the government’s spending, especially on infrastructure.

Budget 2021 expectations | Healthcare sector allocation likely to go up by 40%

Budget 2021 expectations | Healthcare sector allocation likely to go up by 40% To boost investments in the sector, in addition to the viability gap funding already announced, tax incentives for private sector investments in modernising medical facilities and developing greenfield hospitals will be a welcome step.

Budget 2021 expectations | Better financing mechanisms needed to keep National Infrastructure Pipeline on track

Budget 2021 expectations | Better financing mechanisms needed to keep National Infrastructure Pipeline on track Infrastructure project financing in India is predominantly from the banking sector and a few infrastructure NBFCs. It is important to strengthen the existing infrastructure NBFCs for enhancing their ability to finance projects.

Budget 2021 expectations | Tax clarity and support for gas prices key demands of the oil and gas industry: ICRA

Budget 2021 expectations | Tax clarity and support for gas prices key demands of the oil and gas industry: ICRA A downward revision in cess on crude oil production, from the current level, may help upstream companies improve their earnings in a higher crude oil price regime

Budget 2021 expectations | Focus should be on achieving Sagarmala targets and increasing autonomy at major ports: ICRA

Budget 2021 expectations | Focus should be on achieving Sagarmala targets and increasing autonomy at major ports: ICRA Even if the Government continues with its past policy and does not introduce higher budgetary allocation towards these plans, some incentives or other measures to boost the private investor interest that facilitate more active participation could be expected

Budget 2021 expectations | Renewables & strengthening of power distribution segment is key for power sector: ICRA

Budget 2021 expectations | Renewables & strengthening of power distribution segment is key for power sector: ICRA Policy measures are also required to revive stranded gas-based projects, given that such projects can be used to meet peak power demand and as a balancing power source in the light of the rising share of intermittent renewable generation

Captains' View

A poll conducted by the CII, India's oldest and largest industry body, exclusively for Moneycontrol.
Presented by Toshiba
Presented by Toshiba

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

CII-Moneycontrol CEO Budget Survey | India Inc wants focus on public spending, manufacturing sector

The poll was conducted by the Confederation of Indian Industry (CII), India’s oldest and largest industry body, exclusively for Moneycontrol. It took responses from more than 80 CEOs of the country’s top business houses. In it, the corporate honchos laid down their expectations from the government in and beyond the Union Budget 2021-22, as well as their thoughts on the economy in 2021.

My One reform

Industry captains talk about the one reform they wish from the budget.
Presented by Sophos
Presented by Sophos

Amusement parks must be exempted from e-invoicing, state-level taxes

Arun Chittilappilly is Managing Director, Wonderla Holidays| Wonderla Holidays

STPI-like startup reforms key to boost ecosystem

Keshav R Murugesh is Group CEO, WNS and Past Chairman, NASSCOM| WNS

Hotel projects of over Rs 50 crore should get infra status

JB Singh is President and CEO, InterGlobe Hotels| InterGlobe Hotels

Budget must focus on streamlining hospitality sector regulations to spur demand

Rohit Kapoor is Chief Executive Officer, OYO India & South Asia. Views are personal.| OYO India & South Asia

Uniform tax rate of 18% on all vehicles will bring some respite

Gurpratap Boparai is MD, Skoda Auto Volkswagen India| Skoda Auto Volkswagen India

We are almost bordering a V-shaped recovery now

Manish Bhatnagar is Managing Director, SKF India| SKF India

India must attract global manufacturers of key components to become a superpower

Rajeev Karwal is Founder Chairman, Milagrow Humantech| Milagrow Humantech

Economic stimuli from govt critical for aviation sector revival

Rajeev Jain is CEO, Mumbai International Airport| Mumbai International Airport

Team India Budget

The team responsible for the budget preparation.

Dil Chahta Hai

Dil Chahta Hai by Farhan Akhtar was a point of inflection in Indian filmmaking. Will 2021-22 be a breakout year for the Indian economy?
Dhande Ki Baat: Alok Jain sees prices reaching climactic top in 2021

Dhande Ki Baat: Alok Jain sees prices reaching climactic top in 2021

After a shutdown in March, the Indian government started the unlock process from late May-June. After that, the markets saw recovery and record-highs in 2020. Find out what experts predict for the year 2021.

What is the Finance Bill?

The government proposals for the levy of new taxes, alterations in the present tax structure or continuance of the current tax structure beyond the period approved by Parliament, are laid down before Parliament in this bill. The Parliament approves the Finance Bill for a period of one year at a time, which becomes the Finance Act.

What is fiscal policy?

Fiscal policy is a change in government spending or taxing designed to influence economic activity. These changes are designed to control the level of aggregate demand in the economy. Governments usually bring about changes in taxation, volume of spending, and size of the budget deficit or surplus to affect public expenditure.

Union Budget

A comprehensive report of the government's financial statements, containing all expenditures and revenues -- actual numbers for the year going by (revised estimates) and forecast numbers for the year ahead (budgeted estimates).

Disinvestment

The sale of government's shares in public sector undertaking is called disinvestment.

Finance Bill

The Bill presented in Parliament immediately after the presentation of the Budget, which details changes in tax policy announced in Budget.

What is a fiscal deficit?

This is the gap between the government's total spending and the sum of its revenue receipts and non-debt capital receipts. It represents the total amount of borrowed funds required by the government to completely meet its expenditure.

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