Key Highlights of Union Budget 21-22 Analysis

Team MBAtrek 11 May, 2021 Business Insights

Healthcare Sector

The budget, which allocated Rs 2,23,846 crore for health and wellbeing launched a new centrally sponsored scheme, PM AtmaNirbhar Swasth Bharat Yojana, with an outlay of about Rs 64,180 crores over 6 years. 

The scheme is to develop capacities of primary, secondary, and tertiary care health systems, strengthen existing national institutions, and create new institutions, to cater to the detection and cure of new and emerging diseases.

The scheme will support 17,000 rural and 11,000 urban health and wellness centers.

India will spend Rs 2.23 trillion on healthcare and launch a new central scheme with an outlay of Rs 64,180 crore over the next six years to improve health systems nationwide

Automobile Sector

Scrapping policy, according to which “private cars older than 20 years and declared unfit/polluting, will be scrapped and for commercial vehicles, the age is up to 15 years”.

This will help in encouraging fuel-efficient, environment-friendly vehicles, thereby reducing vehicular pollution and oil import bill.

The vehicle scrappage policy has been devised to promote sales of new vehicles with improved fuel efficiency and low pollution levels, as well as to slash India’s Rs 10 lakh crore expenditure on crude imports.

Steel Sector

The government has proposed to reduce customs duty to 7.5 % on imports of semi-, flat and long products of non-alloy, alloy, and stainless steel

The government exempted duty on steel scrap till March 2022 and also reduced duty, halving it to 2.5%, on copper scrap.

Impact - This will help smaller businesses and those who recycle.   

To provide relief to metal recyclers, mostly MSMEs, there is the exemption of duty on steel scrap for a period up to 31st March 2022. Also, to provide relief to copper recyclers, there is a reduction of duty on copper scrap from 5% to 2.5%.

Impact- Industry experts say that the steel industry will benefit from the infrastructure push that the Budget gives.

Infrastructure Sector

The government has allocated Rs 20,000 crore to set up and capitalize a Development Financial Institution (DFI).

This time the government has allocated 34.5% more (BE to BE) than last year to infrastructure development.

Agriculture Sector

The Budget has extended the scheme to minimize the price risk of fruits and vegetable growers. Under this scheme, the government provides subsidies at the rate of 50% of the total cost on transportation from surplus to deficit regions and hiring of appropriate storage facilities for the eligible crops. 

Impact - This will strengthen the value chains of fruits and vegetables due to transport subsidies and stabilize prices through facilitating storage when prices crash due to excess supply. The scheme will also contribute to stabilizing the incomes of fruits and vegetable growers and minimize wastage. 

 

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