THEORY OF RELATIVITY

THE UNION BUDGET 2021 FULFILLED SOME WISHES, BUT ALSO SAW SOME MISSES. WE CAPTURE SOME OF THE REACTIONS

- MOLLY R

PERHAPS, IT’S AFTER A LONG TIME THAT THE country waited for the Union Budget. This time has been different. Battered, bruised and hurt (in different ways, of course), the year 2020 is one that most would like to forget.

The government has been trying its best to pump in money into the econmy. But its best efforts didn’t create the effect it ought to have. To a large extent, most of the key announcements were in line with the central theme of ‘Aspirational India, Economic Development, A Caring Society’. Although the fiscal deficit has been pegged at 9.5 percent in the Budget, this is a necessity to cure ailing industries, particularly the MSMEs. The tax reform measures have been tweaked to enable metal recyclers to flourish, particularly when it comes to the import of steel and copper.

IS IT ENOUGH?

The Budget provides an opportunity to harness the capabilities required to implement transformative reforms and build upon the foundations integral for the manufacturing sector to contribute to 25% of the country's GDP by 2025. Economic growth in India over the years has been propelled by growth in the services sector. Today, the sector contributes the highest to India's GDP. In contrast, the manufacturing sector, despite its higher multiplier effect on employment and growth, has not been able to serve as a powerhouse for the country's growth engines.