Budget 2022

Financial Markets

Crypto push

FM proposes flat 30% tax on income from virtual digital assets

impact

It paves the way for the regulation of digital assets like cryptocurrencies.

stocks to watch for

• Tech Mahindra
  1076.65
  -12.15 (-1.12%)
• TCS
  3371.40
  -13.95 (-0.41%)

Pharma

Improved access to healthcare

An open platform for the national digital health ecosystem will be rolled out. National tele-medicine programme to be launched.

impact

It will improve access to healthcare for people including in remote areas.

stocks to watch for

• Apollo Hospital
  4750.00
  -38.05 (-0.79%)
• Fortis Health
  287.10
  -4.25 (-1.46%)

Auto

EV boost

Boost for EVs with battery swapping policy

impact

Will help mitigate one of the biggest hindrances to adoption of electric vehicles in India - range and charging anxiety.

stocks to watch for

• Exide Ind
  190.60
  -1.05 (-0.55%)
• Amara Raja Batt
  651.25
  -8.80 (-1.33%)

Information Technology

SEZ made easier

The current SEZ Act to be replaced with a new act, which will allow states to become partners in the zone’s development.

impact

Will make compliance norms easier and thus setting up of SEZs easier. Not clear whether it meets industry demands.

stocks to watch for

• Infosys
  1614.65
  1.75 (0.11%)
• HCL Tech
  1105.00
  -15.95 (-1.42%)

Consumer & Retail

More money in farmers’ hands

Procurement of wheat and paddy for 2021 seasons from 16.3 million farmers. In this Rs 2,370 billion will be the direct payment of MSP value to their accounts.

impact

It will improve farmers’ incomes and can drive up consumption.

stocks to watch for

• UPL
  780.05
  -7.85 (-1.00%)
• Chambal Fert
  306.85
  -0.65 (-0.21%)

Banking

Digital coin crosses one hurdle

FM proposes digital rupee using blockchain technology by the RBI in 2022-23, to boost the digital economy.

impact

This is a big announcement in the run up to the official launch of CBDC.

stocks to watch for

• One 97 Paytm
  508.70
  -5.95 (-1.16%)
• Fino Payments
  232.35
  -1.35 (-0.58%)

Real Estate

Affordable housing

FM allotted Rs 48,000 crore towards housing projects for FY23 under PM Housing scheme.

impact

The enhanced allocation should further boost affordable housing projects in the country.

stocks to watch for

• DB Realty
  102.05
  0.40 (0.39%)
• Brigade Ent
  489.05
  -10.40 (-2.08%)

Infrastructure

Highway expansion

National Highways will be expanded by 25,000 km. Rs Rs 20,000 crore will be mobilised through innovative ways of financing for national highways.

impact

Road construction stocks rise as FM says highway network to grow by 25,000 km in FY23.

stocks to watch for

• IRB Infra
  278.60
  -5.35 (-1.88%)
• KNR Construct
  260.35
  -1.25 (-0.48%)

Startups

One more year of tax breaks

Tax rebate on profits made extended for one more year.

impact

It will help young companies in the country, which number over 61,400.

Agriculture

Farmer Focus

Promotion of chemical-free natural farming, oil seed production and millet marketing, and a fund to promote agritech.

impact

It can improve soil health, farmer income and better productivity. Will also reduce edible-oil import bills.

stocks to watch for

• UPL
  780.00
  -7.90 (-1.00%)
• Coromandel Int
  908.15
  -7.15 (-0.78%)

Banking

Wider digital banking

Opening of 75 digital banking units in 75 districts by scheduled commercial banks.

impact

This is good news for digital banking push and related companies.

Banking

Cross border IBC resolution

Necessary amendments in IBC structure to promote cross border insolvency resolutions.

impact

More teeth for the IBC mechanism. This is a much needed step and was a key point mentioned in the Economic Survey.

Defense

Boost for domestic defense manufacturers

68% of defense Budget to be allotted towards domestic industry component of imports in the defence will be brought down further from 58% to 68% in 2022-23.

impact

This will further boost order books of Indian manufacturers in private and public sector.

stocks to watch for

• Hindustan Aeron
  2743.00
  -15.50 (-0.56%)
• Larsen
  2128.25
  34.75 (1.66%)

Energy

Solar push

Additional allocation of Rs 19,500 crore for PLI for solar PV module.

impact

This would boost domestic manufacturing of solar power equipment, subsequently benefit solar power generators.

stocks to watch for

• Tata Power
  226.40
  -2.40 (-1.05%)
• Adani Green Ene
  2044.75
  -18.55 (-0.90%)

Infrastructure

Capex Budget for FY23 gets a big boost

The FM allotted Rs. 7.5 lakh crore for capital expenditure in FY23, almost 2.2 times of the allocation of FY20.

impact

The capex thrust should boost job creation and long-term growth of the economy.

stocks to watch for

• Larsen
  2128.30
  34.80 (1.66%)
• Thermax
  2055.00
  14.55 (0.71%)

Banking

Digital coin crosses one hurdle

FM proposes digital rupee using blockchain technology by the RBI in 2022-23, to boost the digital economy.

impact

This is a big announcement in the run up to the official launch of CBDC.

stocks to watch for

• One 97 Paytm
  508.70
  -5.95 (-1.16%)
• Fino Payments
  232.35
  -1.35 (-0.58%)

Education

Digital push

Budget announces establishment of a Digital University, 200 TV channels for education sector.

impact

To promote technology adoption in education. Will supplement education delivery via vernacular languages

Startups

Drone takes flight

Kisan drones will be used for crop assessment, digitisation of land records and spraying of insecticides.

impact

Startups will be encouraged to launch ‘drone shakti’ and offer drone as a service.

Personal Finance

Filing made easier

Taxpayers can now avail of a 2-year window to file revised returns if they have forgotten or erred in missing returns.

impact

This will help reduce friction with the tax department and also improve compliance.

Real Estate

FDI in realty

Digitisation of land records at a national level.

impact

It will make it easier for FDI participation in real-estate.

Pharma

Concessional tax extended

Govt extends concessional 15 percent income tax for new manufacturing companies till March 31 2024.

impact

Useful for companies who are planning new projects through separate companies whose plans may have been delayed by covid

Consumer & Retail

Shining through for jewellery

Simplified regulation for ecommerce exports in gems and jewellery sector, and duty reduction to 5 percent for cut/polished diamonds and gemstones.

impact

It will improve exports of gems and jewellery.

Startups

Boost for VC and PE investments

Expert committee to be formed for VC & PE investments. More fund of funds managed by private entities to be rolled out, with govt share’s at 20%.

impact

It will help boost investments.

Startups

Unlisted shares LTCG capped

Long term capital gains for unlisted shares remains at 15 percent.

impact

Huge win for startups. Effectively reduces tax for angel investors from 28.5% to 23%. Draws more investments.