NATIONAL/ MUMBAI, 1st FEBRUARY, 2022 (GPN): 

1. EDUCATION SECTOR:

A).Post Budget 2022 Quote on behalf of Mr. Aakash Chaudhry, Managing Director, Aakash Educational Services Ltd.

“The Union Budget FY2022-23 is growth oriented and has put the much-needed impetus on digital education boosting the penetration of learning where online education is still not accessible. To effectively bridge the learning gap created due to the pandemic, efforts such as setting up of the digital university, providing high-quality e-content, expansion of ‘One class, one TV channel’ under the PM e-Vidya scheme, equipping teachers with digital tools, creating virtual labs, promoting critical thinking will not only improve learning outcomes but will also provide students access to world-class universal education with a personalized learning experience at their doorsteps. 

By developing syllabus in different languages, focusing on skilling, reskilling and upskilling youth, the Government has demonstrated its commitment towards breaking the glass ceiling and encouraging education in regional languages. Collaboration between public universities and institutions will create a network of the hub-spoke models with competitive mechanisms building a resilient mechanism for education delivery. 

The budget aptly addresses last-mile delivery reach with a strong focus on empowering teachers through digitization and the necessity to train students in sync with global standards. The 25-year vision will build an open, digital, connected and inclusive India.” 

— Mr Aakash Chaudhry, Managing Director, Aakash Educational Services Ltd. 

B).Post budget reaction from Dr Silpi Sahoo, Chairperson, SAI International Education Group

Right from the Finance Minister’s use of a Tablet to propose the budget explained that India is on the path of a digital revolution in the near future. As expected the government has well thought to reduce the digital learning gap between the urban and rural by introducing ‘1-Class-1-TV channel” covering multiple regional languages, which will not only counter the Learning losses but will bridge the learning gap. The PM’s e-Vidya will be further expanded from 12 to 200 channels to facilitate supplementary learning.

For the implementation of NEP 2020 great stress is implied on shifting the focus on Upskilling, therefore the launch of Digital DESH e-portal for skilling, upskilling and reskilling will be the key to newer dynamics. To develop the 21st century skills of critical thinking amongst students setting up of virtual labs and skilling e-labs will be valuable. To enable quality learning for each child quality e-content will be made through various means. Teachers will be trained to use better e-teaching outcomes and enhancement of learning experiences. Huge focus was laid on e-services in rural areas, it is proposed that all the villages will be laid with optical fibres by 2025, and villages will be at par with the urban areas.

Setting up of Digital University is a great step towards accessibility of quality world class education for all. As per the NEP 2020, Foreign Universities will be set up and Gujarat to set up the model Foreign University to make education accessible for all. 

An increase in the  overall financial allocation for the education sector for 2022-23 to Rs 1.04 lakh crore from Rs 93,224 crore (Budget estimate) in 2021-22 in view of Samagra Shiksha is certainly a welcome move. It’s a great education budget; belling the cat at the right time though the implementation is to be thought upon. We are looking forward to a quick implementation of the proposals.

C).POST BUDGET QUOTE By Vaidyanathan V, CFO At Great Lakes Institute of Management, Chennai

The Budget 22 has provided a much-required push to the economy by increasing the allocation to Capital Expenditure by about 35%. The budget has given thrust to the Gati Shakti – for sustainable growth. The budget has also given a push to the digital economy, introduction of Digital currency starting 200 TV channels to fill the gap in learning of the children due to the pandemic are some of the welcome points. Repealing 1486 Acts, which were redundant, introduction of e-passport, thrust for EV (electric vehicle) by introduction of charging stations and battery swapping are all welcome moves. Modification to the filing of tax returns for rectification/ including left out income at a nominal fee is a welcome move to avoid litigation.

D).Post budget reaction quote from Prof. Hema Swamy, Assistant Professor, Finance at Great Lakes Institute of Management, Chennai

While energy efficient trains like Vande Bharat or ‘eco friendly’ housing schemes are welcome, it is important to educate, support and improve sustainable lifestyles in as many spheres as possible. This could be through eco friendly educational initiatives through television like growing your own food or water conservation measures aimed at school children, allocation for urban kitchen gardens in PM housing schemes and government hospitals and other such micro level interventions can facilitate the conscious adoption of a sustainable lifestyle.

E).Views by Mr. Avinash Kumar, Founder, Credenc

We welcome the Union Budget announced by the Finance Minister that is positively focused on e-learning to address the rising concern on education in the country. The development of a digital university & expansion of  the present PM eVidya Scheme from 12 channels to 200 channels will facilitate supplementary learning for all classes from 1 to 12 in regional languages. This will help students to access world class quality education, especially in remote rural areas. Moreover, An innovative and path-breaking initiatives of digital university and One Class One TV Channel was a much needed scheme to help overcome the loss of learning due to the pandemic. This much required shift to the digital learning will accelerate the growth of ed-tech companies and will fuel growth within the sector.

F).POST BUDGET REACTION QUOTE – DR MONA LISA BAL, CHAIRPERSON, KiiT INTERNATIONAL SCHOOL

The Union Budget 2022 announced today was a hit and miss for the education sector. While it has finally addressed and recognized the learning loss the pandemic has created, the need to develop the digital infrastructure of the country was not adequately focused in the budget. The economically disadvantaged students especially in rural areas have lost essential years of education and introduction of supplementary teachers was highly necessary. Supplementary education can help bridge the gap to a large extent. Increase of ‘One Class One TV Channel’ from 12 to 200 TV Channels to provide supplementary education in regional languages for class 1-12 is a welcome move but it will not be enough. It is important that we adapt our education system, pedagogies, and assessments according to the changing times. Upskilling is the need of the hour. Thus, the launch of Digital DESH e-portal for skilling, upskilling and reskilling will be key to adapting to the shifting dynamics of our present. Setting up of virtual labs and skilling e-labs will be valuable in developing critical thinking amongst students. Access to high quality e-content can help enhance the quality of education received by students. Making this accessible in regional languages additionally is a positive step towards a wholesome education. Development of a digital university to provide access to students for world-class quality education with ISTE Standards will be beneficial in the long run by making education available for a wider audience through the power of the internet. However, the much-needed increase in budget allotment for the education sector was missed. Further constructive measures towards digitization and resuming physical classes are needed.

2. REAL ESTATE SECTOR & INFRASTRUCTURE INDUSTRY: 

A).Union Budget 2022- Views by Mr. Kamal Khetan, Chairman and MD, Sunteck Realty Ltd

The budget is a capex-oriented budget, covering all major macro-economic growth engines, that includes infrastructure, housing and MSME sectors. The government’s focus on the creation of 80 lakh affordable housing units by 2023 and allocation of Rs. 48000 crores towards the PM Awas Yojana, will go long way to support housing and allied sectors.

The Real estate sector is bouncing back from post pandemic, and the proposal of expanding highways in the country by 25,000 kilometres and focus on urban infrastructure will give it support it requires. To bring trust and transparency to the whole sector, the government’s ‘One Nation, One Registration Software’ will prove to be a pivotal step. The process promises to bring uniformity to ‘anywhere registration’ of deeds and documents and ease the systemic lock jam.

B).Budget quote for Kshitish Nadgauda, Senior Vice President & Managing Director (Asia) (Louis Berger International)

“The Budget has the necessary long-term vision with the horizon established as India@100 and has a clear focus on infrastructure development. With Gati Shakti, involving the seven engines from roads to mass transit, the current budget has the right emphasis on infrastructure to drive rapid and inclusive economic growth.

For the infrastructure industry, the allocations for various infrastructure sectors and projects are welcome and will pave the way for increased efficiency in logistics and supply chains and enhance the competitiveness of the Indian economy. In addition, the budget is clearly in favor of increased private investment, and PPPs. For citizens, the Budget promises safe, convenient, and cost-effective multimodal transportation not only in Tier I but also in Tier II cities and towns. The ambitious 25,000 km expansion of national highways, and announcement of intended investment in light rail and metro lite in Tier II cities and towns and as feeder networks in Tier I cities will rightly increase the share of public transport in urban areas, thereby contributing to sustainable development.

A key aspect of the Budget with its focus on investment in infrastructure, urban and housing development, and river-linking, and transportation projects is that it should drive employment and create thousands of much-needed jobs. Increased employment coupled with the greater efficiency in the movement of people and goods would likely bring down inflation. Overall, it is a positive, promising and job-driven budget that has all the elements to revive the economy and revitalise society.”

3. INSURANCE INDUSTRY: 

A). Budget reaction from Mr. Rakesh Jain, CEO, Reliance General Insurance Co. Ltd.

“The General Insurance Industry has played a stellar role in the country’s upliftment and its constituents over the years, particularly during the Covid Pandemic or during a dozen-odd Cyclones/floods that have been hitting our country almost on an annual basis. The industry has provided financial stability to millions of people and establishments, settling claims over Rs. 1.50 Lac Crores each year and growing. The status of the GI Industry is no less than the infrastructure industry as it leads to building many stabilizing foundations in sectors like Healthcare, Automotive, SME, Agriculture apart from risk transfers for Corporate and Individuals. As the Indian economy emerges stronger in years to come, the role of the GI Industry in taking care of unforeseen risks is almost imperative to ensure that disruptions are handled in an organized manner. The abysmal penetration of Insurance vis-à-vis global levels is a clear risk in this journey.

The Budget for the year 2022-23 has laid clear emphasis on the capital outlay, with the capital expenditure proposed to be enhanced to Rs.7.5 lakh crores at 2.9% of the GDP; over 35% increase than the last year. This is likely to result in the generation of capital assets across the country, with a focus on the infrastructure space. Such assets need to be insured, and the General Insurance industry in India is fully geared up to meet the country’s rising needs. Further, such creation of assets has cascading effects on employment, income and consumption. It improves an individual’s lifestyle and helps develop both the knowledge and the need to protect the assets and health of the family members through Insurance. This leads to a virtuous cycle for a secular growth of the General Insurance industry. There is also a move to use Surety Bonds, which the Insurance companies may issue under the framework of IRDA, as a substitute for Bank Guarantee in Government procurements and Gold imports. The move recognizes the ability of the Insurance industry to provide alternative products to the Banking sector, thus paving the way to reduce the cost and diversity risk.”

B).Post-budget quote by Ankit Agrawal – CEO & Co- Founder, Insurance Dekho.

“We welcome the announcement made by the government under budget 2022-23, as it brings to fore inclusive policies and frameworks for the startup and insurance ecosystem.  The Government has announced an extension in eligibility for startups incubated till March 31, 2020, for tax incentives. This will allow some relief to the businesses struggling with the ripple effects of the pandemic and its waves. This incentive will further provide a boost to the startup ecosystem and nurture a positive sentiment towards entrepreneurship within the industry. Reforms in insurance schemes tax for differently-abled people will further boost the insurance industry. We thank the government for announcing the measure.” Ankit Agrawal – CEO & Co-Founder, InsuranceDekho.

4. TECH INDUSTRY,  COMPUTERS & SOFTWARE, ROBOTICS, TECHNOLOGY AND IT SECTOR:

A).Budget reaction quote from Vipul Singh, Founder & CEO, Aarav Unmanned Systems (AUS):

“The Union Budget presented by the Hon’ble Finance Minister ensures supercharged growth for the drone industry in India in the years to come. The budget duly recognizes the key role drone technology is playing in solving some really tough to solve problems for sectors like land records, infrastructure, mining, disaster management, and agriculture. Furthermore, the announcement of Drone Rules 2021, the PLI scheme for the drone industry, and subsidies for drones to be used for agriculture applications have provided a fillip to the sector. In Budget 2022, the announcement of the ‘Drone Shakti’ program will continue to strengthen the sector further making it at least a $5B market in India available primarily for domestic companies. This will enable further innovation in the sector and fuel growth with further adoption of drone tech and ‘drone-as-a-service’. The opportunities, emphasis, and support being provided to this emerging sector will help drone start-ups extend their portfolio across agriculture, digitization of land records, railways, mining, renewable energy, telecom, etc., and will lead to a paradigm shift for a new Digital India.”

B).Budget Reaction From Alok Dubey, Chief Financial Officer, Acer India

“The Union Budget announced today showcased the government’s initiative towards Digital Transformation. From announcing a Digital University, for online learning to high-quality e-content across languages will enable the youth to skill, upskill and reskill themselves. These programs under digital learning and the connectivity expansion will further strengthen the availability and accessibility of internet in rural areas.

With Govt infrastructure spending push, we are likely to see more employment and growth opportunities and enhanced private sector investment in manufacturing. We are confident that the exemption of duty on parts of select electronic items will further boost the domestic manufacturing of electronics goods under the PLI scheme. Overall, the Union Budget 2022-23 is a promising budget and a step forward towards ‘Aatmanirbhar Bharat’.”

C).Comment on the Union Budget FY2022-23 – Aneel Gambhir, CFO, Blue Dart

“We are pleased to note that the Union Budget, is progressive, focuses on growth and is in line with our expectations. The Government’s focus on consistently investing in infrastructure development across the country bodes well for the Indian economy and more specifically for the logistics industry. The focus on public investments, by expanding the National Highway network by 25,000kms, the Gati Shakti masterplan with seven engines, 100 new cargo terminals, will give an impetus to the growth of the industry and help bring efficiency in logistics operations. We must also recognize the push for utilizing and promoting a digital ecosystem, whether that be with the launch of Gati Shakti and the numerous opportunities it initiates or the adoption of eVehicles; it further streamlines systems and processes, propelling the idea of Aatmanirbhar Bharat.

The prioritization of technology is a 2-pronged strategy that also seeks to drive cleaner operations. The announcement of the special policy for battery swapping, introducing a uniform standard for EV batteries, encouraging the private sector to engage in sustainable business models and setting up additional public charging stations, have the potential to revolutionize the eVehicle industry. Moreover, eVehicles can also play a key role in last-mile logistics, a feat that can assist the industry in reducing its carbon footprint. The Government has also highlighted initiatives that will be beneficial for all by reducing the surcharge on long term capital gains.

While the budget carries good news for the logistics sector, we are happy to note the Government’s efforts in propelling areas such as infrastructure, digitalization, sustainable practices and citizen well-being, all of which require a special focus going into the new financial year. The world is now acclimated to COVID-19 and we are keen to see the subsequent results of these initiatives on the nation, going forward.”

D).Post-budget quote by Nikhil Mathur, Managing Director India & Head Data Partnership & Innovation-APAC, GfK for your kind perusal.

Sharing views on Union Budget 2022- 2023, Nikhil Mathur, Managing Director – India, GfK said, “Government’s growth-oriented goals led by the digital economy and tech-enabled developments will boost the consumer and electronics industry penetration across India. GfK insights indicate similar positive trends as the consumer landscape is evolving in lower-tier towns. The inclusion of 5G in the PLI scheme will boost the ‘Make in India’ vision and smartphone penetration in rural. We can expect a substantial surge in the contribution of 5G devices in 2022 which is currently 27% in terms of value & 12% in terms of volume as per GfK Market Intelligence 2021. This will also aid the growing demand for premium & smart appliances. The calibration in custom duties for “wearable and hearable” devices will provide an impetus for higher growth in 2022.

The underlying theme of ‘Atmanirbhar’ & ‘Make in India’ will undoubtedly create job opportunities, bringing a positive outlook towards domestic demand of consumer tech products in India. The industry was expecting rationalization of GST for appliances & electronics which would have enhanced the consumption. However, it is still a progressive budget paving a superhighway for sustained, structured, and long-term growth for the Technical Consumer Goods industry.”

5. BANKING, SME & MSME SECTOR:

A).Budget Reaction From Ramanujam Komanduri, Country Manager, India, Pure Storage:

“The Union Budget 2022 expectedly turned out to be a growth-oriented budget. The government is focused on reviving the economy through various programs across industries and especially MSMEs, which were hardest hit by the pandemic. The rollout of the Raising and Accelerating MSME Performance program will help address the challenges faced by the sector, through injection of liquidity and ease of compliance norms. The Credit Guarantee Trust for MSME will not only enable them to revive their businesses with additional funds but also enhance employment opportunities and enable job creation.

There is also a strong push for digital transformation in the education sector by announcing Digital University and high-quality e-content across regional languages for the students to skill, upskill and reskill the youth. Addressing the structural challenges in the education landscape, the government has focused rightly on upskilling and digital learning. Another impactful announcement is the confirmation of the auction of 5G spectrums this year which will improve accessibility, speed, and availability of the internet across India and particularly in rural areas. This budget’s emphasis on Digital India will further attract investment and put India firmly on the global innovation map.”

B).Union Budget reaction quote from Mr. Rajkiran Rai G, MD and CEO, Union Bank of India.

The Budget 2022-23 is set in context of recovering economy with good macro stability. The Finance Minister takes forward growth impetus through enhanced outlays on public capex, incentives for digital, start-ups, supporting MSMEs, and targeted welfare spending in 2022-23. The cumulative Government support through ECLGS rising to Rs 5 trillion till March 2023 is welcome enabler for credit to vulnerable sectors of economy. Moreover, the absence of capital allocation for public sector banks reaffirms confidence in strength of banking sector in meeting the credit needs of economy. Overall, it is a growth oriented Budget.

C).Post budget reaction from Mr. Rajesh Sharma, Managing Director, Capri Global Capital Ltd 

“We welcome the growth-centric Budget aimed at securing India’s long-term economic interest. The union budget 2022-23 announced by the honorable finance minister has shown a progressive and development-oriented focus for infrastructure and MSME. Extension of Emergency Credit Line Guarantee Scheme by another year to March 2023 and coverage increment of 50,000 crores will give the necessary impetus and act as a key enabler to empower the MSME businesses at the grassroots. The announced measure will have a domino effect on the sector as well as provide a cushion to create an engine of economic growth. The interlinkage of various portals for MSMEs will bring the masses who require the necessary thrust and foster an environment where India becomes integral to global demand. We believe the government will accelerate the task to implement the measures efficiently and rapidly for desired outcomes.

Additionally, the allocation of Rs 48, 000 crores for Pradhan Mantri Awas Yojana will fuel the vision of Housing for All and de-bottleneck issues surrounding the affordable housing segment. The announced measure will have a force multiplier for ancillary sectors to generate more opportunities.”

6.AUTO SECTOR AND AUTOMOBILE INDUSTRY:

A).Mr. Vikas Bajaj, President, AIFI (Association of Indian Forging Industry) said

 “This Union budget focuses on investing more on infrastructure and renewable energy, which will indirectly support employment generation. Apart from that, the government has focused on strengthening the logistics sector, digital education, health infrastructure etc. which is a welcome move. Apart from encouraging EV by creating a battery swapping strategy to overcome EV charging infrastructure, I believe there isn’t much in the budget to support the auto sector as was expected. Also, not much changed in the Direct Tax rates for Corporates as well as individuals except incentives for start-ups by extension of timeline for start of production u/s 115BAB. Some industries, such as jewellery, have benefited from reduced customs duties on precious stones and other commodities. Finally, to assist the MSME sector, the ECLGC scheme has been extended for MSE’s till 31st March 2023”.

B).Mr. Farrokh Cooper – Chairman & Managing Director – Cooper Corporation Pvt Ltd Said,

“The Union budget 2022-23 announced today by honorable finance minister has shown a progressive and futuristic approach for all sectors in India, which will help boost the Indian economy and recover from the pandemic. The government has taken some prudent initiatives for MSMEs in this budget, and I believe that their approach to fast-tracking the economy by providing opportunities to start-ups and businesses and creating six million new jobs will not only boost the economy but will support our future generation with an advantage above all. The government’s support for manufacturing, agriculture, healthcare, MSMEs, and infrastructure as well as the expansion of 100 PM Gati Shakti Cargo terminals over the next three years, are encouraging steps toward a brighter and more successful India in the coming years.”

C).Mr. Anurag Garg, Managing Director & Country Head, Vitesco Technologies, India said

“In today’s budget, there are so many important announcements that will be helpful for Indian automotive segment paving their way into EV segment and manufacturing sector at large. Continuing with the ‘Atmanirbhar Bharat’ stride from last year, there is continuous strong push towards building self-reliance in manufacturing and localization in this budget too. This year the government has shown major attention on the overall digitalization of various services and pushing clear air & sustainability as one of the most important highlights. We appreciate the heightened emphasis in respect to EV segment, the introduction of the new policy for battery swapping will encourage the use of electric vehicles. We also look forward seeing further action to step up initiatives to boost EV infrastructure and EV ecosystem to achieve its broader decarbonization goals and support clear air resolutions.  With additional increased focus on expanding EV infrastructure across the country, with more EV charging stations to help vehicle owners to shift to electric cars without lesser worry of connectivity, these decisions were much needed at this period to boost usage of EV”.

D).Quote By Venkatram Mamillapalle, Country CEO & Managing Director – Renault India for Budget 2022.

“We welcome the Union Budget 2022, which spells seamless growth for the Auto & Auto Ancillary industry in India. The government’s focus on ‘Aatmanirbharta’ will continue to provide impetus to build domestic capacities and push the agenda of ‘Vocal for Local’. The government’s focus on Battery Swapping policy to be brought with inter-operability standards and push for clean tech and electric vehicles will create the right ambient environment for EV introduction and overall harmonisation of the electric mobility aspiration of the nation. This move will prove to a giant leap for the nation in advocating introduction of cleaner propulsion technologies and will improve air quality and reduce consumption of conventional fossil fuels.

The government has laid emphasis for the development of the infrastructure within the country that will further help build capacities for the resurgence of the automotive sector in India and envisages Rs 20K Crore investment outlay in infrastructure projects, under the auspices of PM’s Gati Shakti that focuses on 7 engines of growth, including building the road transport network in the country. The National Highways network will be expanded by 25,000 km in 2022-23. Better roads will have a certain positive impact on the automotive sector. Finally, the government’s decision of strengthening the rural economy through a MSP payment of Rs 2.73 lakh crore along with other benefits with an objective of aiding the farming sector, will help increase the disposable income, improving the sentiment in rural areas and further improving the demand & aspirations of rural and semi-urban markets of India for personal mobility.”

E).Statement By Mr. Vinkesh Gulati – President FADA:
“Union Budget 2022 seeks to lay the foundation for the next 25 years, from India@75 to India@100. With PM’s ‘Gati Shakti National Master Plan’, a Rs 100-lakh crore project for building comprehensive infrastructure in India, it will be a significant step towards path to development. The Budget has attempted to focus on each of the sectors and has also tried to stimulate the economy after the pandemic slowdown. FADA welcomes and supports the Government’s efforts & initiatives towards Electric Mobility. There is a clear emphasis on creative, sustainable & innovative business models. Battery Swapping & Energy as a Service (EAAS) will surely help accelerate the transition towards Clean Mobility. The development of special mobility zones for electric vehicles and promoting clean technology for public transport validate government commitment to E-mobility, which would boost confidence in the EV industry in terms of manufacturing, sales, and create a sense of assurance among customers.

The government’s plans for developing 25,000 kilometers of new highways will result in a push for infrastructure spending, which will result in an increase in Commercial Vehicle sales, as well as an addition of 2,000 kilometers of road under a new scheme known as ‘Kavach’ will be an additional benefit to the revival of this segment. With the extension of the ECLG scheme, it is a remarkable move by the government to support the MSME sector coming out of the slowdown caused by pandemics.

The rural India has generally been the key driver for entry level passenger vehicle segment & 2wheeler space. With government plans on 2.3 lakh crore direct payment as MSP to farmers, it will work as a booster for 2Wheeler, Tractor & entry level PV sector sales. However, an additional duty of rupees 2/ litre on unblended fuel from October 2022, could play a spoilsport for the already stressed 2W industry.

F).Quote by Mr Sohinder, Director General, Society of Manufacturers of Electric Vehicles (SMEV):

“We welcome the measures announced by the honorable Finance Minister, today. The budget for 2022–23 gives a huge impetus to the electric vehicle (EV) industry. Introducing the battery swapping policy and recognizing battery or energy as a service will help to develop EV infrastructure and increase the use of EVs in public transportation. It would motivate businesses engaged in delivery and ride aggregation businesses to incorporate EVs into their fleet. It will create new avenues for companies to venture into the business of battery swapping. Additionally, creating special clean zones will further accelerate the adoption of  EVs and spread awareness amongst the citizens. The move will benefit the whole segment, i.e E2W, E3W, E-cars, and buses.

The budget also provides attention to the need for skilled resources in the industry. Introducing new skill programs in ITI will bridge the skill gap that currently exists in the industry. The industry would be happy to work with the government to devise customized courses to meet the demands of the EV industry.

Overall, the budget aims at strengthening the whole ecosystem of the EV industry, which will spur the demand for green vehicles.”

7.FARMING, AGRICULTURE & LIVESTOCK HUSBANDRY SECTOR: 

A).Post budget quote  by Mr. Amit Saraogi, Managing Director, Anmol Feeds, Chairman for Livestock Taskforce, CII for Eastern Regional Council, Director Member of MCC Chambers of Commerce & Industry and Chairman of  Council on Animal Husbandry, Fisheries & Rural the year 2021-2022

The livestock and animal husbandry sector contributes 4.11% to GDP and 25.6% to total agriculture GDP, yet there was inadequate attention presented to the sector in the Union Budget of 2022. Duty reduction on certain inputs required for shrimp aquaculture to promote its exports is a welcome move as it will further boost entrepreneurial mindset and help in job creation. Lowering production cost of shrimp hatchery and feed will promote growth in the sector. The fisheries and aquaculture sector has tremendous potential to generate livelihood and income. However, marine and dairy products were left untouched by the budget. Like announcements made for wheat and paddy farmers, MSP was needed to be fixed for the poultry sector as well. This would have benefited the poultry farmers to a large extent. The industry also expected a viable solution towards controlling the ever spiraling of the raw material prices as it has been plaguing the already overburdened industry. The budget for Blue Revolution has not been outlaid.  The blended capital fund to startups for agriculture & rural enterprise will be valuable for the sector. Making optimum utilization of technology and IT in the farming sector is required for modernization of the industry and keeping up with the post digital world. While development of infrastructure, roads and railways will also benefit the agriculture sector in terms of efficient logistical and supply chain management, the industry expected a lot more from the Budget to support farmers who are the backbone of our country.

B).Post budget quote from Nishanth Chandran, Founder & CEO, TENDERCUTS

The major initiative to introduce chemical-free natural farming is sure to create a better outlook on the quality of food and essentials related to farming and poultry. Provision of funds through NABARD for agriculture and rural enterprises, especially for the farm produce value chain, would be helpful in strengthening the poultry, meat, and seafood sectors. Secondly, as drivers of growth for the economy, the announcement of tax incentives for start-ups to be incorporated until March 31, 2023, will have a good impact on nurturing the start-up ecosystem. It is wonderful to note that the 2022 budget’s focus on road infrastructure will be a game changer and help in maintaining smooth supply chain management. Moreover, the introduction of data exchange will ensure better logistics and the efficient movement of goods.

8.HEALTH-CARE, WELLNESS AND PHARMACEUTICALS SECTOR: 

A).Budget reaction – Dr. GSK Velu, Chairman & Managing Director, Trivitron Healthcare and Neuberg Diagnostics

As expected, Budget 22-23 was a balanced effort to improve overall economic growth. Today, the healthcare sector in India is at a much stronger position than ever before. Measures introduced in Budget 2022-23 will further strengthen the healthcare sector while focusing on prevailing challenges.

The rollout of a National Digital Health Ecosystem will ensure that all segments of the society are able to access affordable and adequate healthcare in a seamless and efficient manner. Such an ecosystem can potentially make universal healthcare a reality for India.

Further, the fact that mental health counselling and care services found a place in the budget is a testament to how far we have come as a country. Inarguably, the Covid pandemic has adversely affected the mental health of the population at large. Thus, the launch of a National Tele Mental Health program can play a catalytic role in both normalising conversations around mental health as well as ensuring that people are able to seek support for mental health related challenges.

Though there was not much for the medical devices industry directly in the Budget, the industry will benefit from the Government’s increased focus on healthcare. The National healthcare mission outlay has been kept at ~37,000 crores like previous year and this is a bit disappointing, considering the fact our healthcare infrastructure needs big boost in the coming years. The demand from all healthcare experts was to increase healthcare outlay in the current budget.

B).Budget reaction – Mr. A Ganesan, Group Vice Chairman, Neuberg Diagnostics –

Reduction of sur-charge  to 12% on Long Term capital Gains is welcome step.

Unintentional errors in Income Tax can be corrected by filing updated return within 2 years from the end of Assessment year – This is a positive change.

Department to wait before filing an appeal in higher court in respect of disputes of similar nature with regard to interpretation of law , in case cases of similar nature are pending in Supreme court / other courts – This is also a very good step .

Significant increase in Capital expenditure allocation by almost 35% will probably spur economic growth and create jobs.

Extension of emergency credit guarantee scheme till 31/03/2023 is a step in the right direction .

National Digital Health Ecosystem , National Tele Mental Health Programme – Very god initiatives if implemented well.

C).Healthcare sector should have gained more priority in Union Budget 2022-2023.Dr. Alok Roy, Member, FICCI, Health Services Committee and Chairman Medica Group of Hospitals 

“India Inc. and especially the Healthcare industry which has been battling COVID-19 pandemic since last 2 years was expecting more investment on public health and healthcare infrastructure from this year’s union budget. The budget has just focused on mental health and digitization of healthcare sector. The very fact that Government has focused on digital healthcare shows that finally healthcare sector is being considered as the prerequisite to ensure economic well-being of the country. Budget 22-23 seems very disappointing for the healthcare sector. India’s growth is estimated to be at 9.27 percent and healthcare will play a major role in the boost. Strengthening of health infrastructure, speedy vaccination programme implementation has strengthened the Indian healthcare system. The decision to start an open platform for the national digital health ecosystem is a welcome move. The emphasis to roll out digital registries of health providers, health facilities, unique identity consent framework with and universal access to health facilities will add more values to Ayushman Bharat Digital Mission. We the healthcare providers heartily welcome the Government’s focus on mental health issues as this has set an alarm across age groups post the COVID pandemic. The announcement of launching the national tele mental health program which will include a network of 23 telemedicine mental health centers of excellence is a much appreciative move that the government has decided.

It was expected the government to look at increasing the healthcare expenditure above 2.5 per cent of the GDP but there was not adequate attention paid to it. Although there had been a rise of 137% allocation in healthcare sector last year much was fulfilled in reality by the government. Overall, the proposals made in the Budget 22-23, should have made quality healthcare accessible and affordable. The government should have focused more on primary healthcare investment and  made the  Healthcare system as National Priority’ status, as was done for the IT sector.

9.ENERGY, POWER, STEEL AND HEAVY INDUSTRIES:

 A).Reaction from Mr Lalit Beriwala, Director, Shyam Steel Industries Ltd . and Sr. Vice President , Merchants Chamber of Commerce & Industry

I welcome the Union Budget, 2022, which is balanced as well as target oriented. It envisages 9.2% growth covering every sector of country’s economy. The focus on promotion of digital economy, health, infrastructure, aviation, energy transition, climate action with an inclusive approach will spur country’s economic growth and improve the quality of life of the people. Besides stabilizing economy, it will accelerate steady growth. I am confident that the following budget provisions will go a long way for transition of India at 100.

Capital expenditure raised by 35.40 per cent from ₹ 5.54 lakh crore to ₹ 7.50 lakh crore is a landmark initiative for economic growth. Capping of Surcharge on long-term capital gains at 15% is also a welcome measure.
Interest free loan of Rs. 1 lakh crore for the States will help the States for robust economic growth benefiting the people.
The Union Budget that proposes to expand National Highways by 25,000 KM in 2022-23 is a welcome decision for Infrastructure development.
The PM Gatishakti National Master Plan costing Rs. 20,000 crore and encompassing 7 engines of development will also be a game changer to the transformation of Indian economy.
Emphasis on infrastructure development including five River Link Projects will ensure hassle-free movement of raw materials of the industries as well as distribution of finished goods across the country at a reduced cost.
Credit guarantee for two lakh micro and small industries aiming to create more employment opportunities is also a welcome measure.
68% capital procurement budget earmarked for domestic procurement will be a significant milestone to the achievement of the goals of Atmanirbhar Bharat Abhiyan and Make in India.
Earmarking of Rs.60,000 crore to cover 3.8 crore households in 2022-23 under Har Ghar , Nal se Jal programme and Rs. 48,000 crore for completion of 80 lakh houses in 2022-23 under PM Awas Yojana will also help the construction industries ( Steel, Cement, Chemicals etc.) to grow.
The proposal to extend “Steel Scrap Duty” for another year will benefit Western India who mostly uses scraps; revoking of anti-dumping on stainless steel will also benefit steel industry.
PM Development (PM-DevINE) initiative for North- East for infrastructural and social development projects with an initial allocation of Rs. 1500 crore will boost economic growth, trade and business and help mainstream NE areas.
Setting up of four Multimodal logistic Parks in different places, 100 Gati Shakti Cargo Terminals in three years will help to accelerate economic growth and boost industrial development.

10.Company Ratings Sector Digital India:

A).Dr. Manoranjan Sharma, Chief Economist-  Infomerics Ratings.

“This is a Budget with an accent on growth and distributive equity. Financial inclusion is given a renewed thrust by the proposals on agriculture and food processing, Ken Betwa Link Project, universalization of quality education, and an all-inclusive welfare focus. There is clear stress on the ambitious PM Gati Shakti programme driven by the seven engines of  Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure to transform the process and pattern of economic development in India in these VUCA (volatility, uncertainty, complexity, ambiguity) times. The accent on increasing investment, creating externalities towards improving the economic environment, enhancing productivity for sustained high growth with greater private sector participation, quality of expenditure, and catalyzing India’s digital economy is well-conceived. Measures regarding digital rupee, 5G, crypto tax, taxpayers getting 2 years to update I-T returns are also welcome.  Contextually significant Budget, entirely in conformity with the needs of an India on the move.”– Dr. Manoranjan Sharma, Chief Economist-  Infomerics Ratings.