About 50 percent of the industry respondents feel that the upcoming Union Budget will revive their business, while a vast majority are optimistic about economic recovery and demand growth, a Deloitte survey said on January 22.
While some respondents also feel that raising the tax exemption limit for individuals will boost private consumption and investment, about 50 percent highlighted demand revival as one of the major working areas.
"Movement restrictions, and financial and health anxiety amongst consumers have affected consumption. High precautionary savings may keep demand below pre-COVID-19 levels for a while. Some respondents also feel that raising the tax exemption limit for individuals will boost private consumption and investment," it said. The online Deloitte survey titled – Would Union Budget 2021 accelerate the industry's recovery? – posed a set of about 12 questions, including on economic revival and ease of doing business, to senior professionals across industries.
The survey collated a total of 180 responses from nine industries. It found that the industry expects the government to focus on creating jobs, especially for less-skilled workers, to boost income and demand.
The Deloitte Budget Expectations Survey 2021 also revealed that more than 70 percent industry leaders are optimistic about the economic recovery and demand growth. "They observe that the mass vaccination drive, the government's stimulus packages and policies, push to infrastructure, India emerging as a manufacturing hub, and digitisation efforts may provide the desired impetus to growth," it said.
About 50 percent respondents feel that the Budget – to be presented on February 1 – will revive their industry and the economy. The survey respondents from life sciences, automobile, infrastructure and power, and telecommunication industries have highlighted the need to increase R&D spend.
Also over 50 percent industrial products and manufacturing industry surveyed feel that credit support to MSMEs would help their industries to rebound sooner. Deloitte India Partner and Leader Public Policy Sanjay Kumar said "recent data and business signals suggest that the economic recovery may be on the way. Schemes such as Aatmanirbhar Bharat and PLI (Production Linked Incentive) have done especially well in supporting self-reliance and stabilising the country's economic growth".
For the economy at large, most industry leaders believe that boosting infrastructure spending would lend their sectors the needed impetus, Kumar added.
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