The year 2020 was predominated by the COVID-19 pandemic, posing the most formidable economic challenge to India and to the world, since the Global Financial Crisis.
Global economic output fell by 4.4 per cent in 2020, the sharpest contraction India has seen in a century. Advanced economies were also hit harder, in terms of lives and economic output, compared to Emerging Market Developing Economies.
As per Economic Survey 2020-21, India’s GDP is estimated to decline by 7.7 per cent in FY2021. Sector-wise, agriculture remained the silver lining while construction and services were hit hardest. Government consumption and net exports have cushioned the growth from diving further down. Moreover, India remained a preferred investment destination in FY 2020-21 with FDI pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies.
In an effort to tackle the upcoming hindrances for the Indian economy, the Union Budget 2021 has been introduced keeping healthcare and infrastructure development at its core.
The budget for the upcoming financial year is rested on six pillars namely:
- Health and Well Being
- Physical, Financial Capital, and Infrastructure
- Inclusive Development for Aspirational India
- Reinvigorating Human Capital
- Innovation and R&D
- Minimum Government and Maximum Governance
Being the first budget of the decade after a challenging pandemic, it has diversified growth-centric propositions in varied sectors of the economy.
We at InCorp have curated a guide on the Union Budget 2021 briefly covering its detailed aspects, projections, characteristics along with our analysis on the same.