India Inc Counts On Budget, Optimistic About Growth In 2021-22

Industry leaders believe focusing on infrastructure sector with adequate financing should be a priority area

India Inc Counts On Budget, Optimistic About Growth In 2021-22
India Inc Counts On Budget, Optimistic About Growth In 2021-22
Vishav - 22 January 2021

India Inc is optimistic about the upcoming Union Budget expecting a strong push for the economy, business, and industry, a recent survey by Deloitte.

Out of 180 survey participants across nine industries, 68 per cent of the industry leaders are positive about India’s economic revival believing that the mass vaccination drive, the government’s stimulus packages, focused attention to infrastructure, and continuing efforts on digitisation are some key areas helping India revive and thrive.

Respondents also expressed that extending R&D incentives, increasing FDI limit in different sectors and further simplifying its processes, along with supply chain reforms, would further enhance the programme’s effectiveness. Respondents felt that increasing the credit support to MSMEs would help the industry rebound sooner.

Most industry leaders are of the view that focusing on the infrastructure sector with timely and adequate financing should be a priority area in this budget.

Sharing his views on the survey findings, Sanjay Kumar, Partner, Deloitte India, said, “The Financial year 2020-21 saw unprecedented disruptions to lives and livelihood all across the world. Recent data and business signals suggest that the economic recovery may be on the way. For the economy at large, most industry leaders believe that boosting infrastructure spending would lend their sectors the needed impetus.”

Close to 65 per cent of the respondents cited that innovative ways to boost project financing and bring in private capital could help the infrastructure sector with about 45 per cent believing that creating a new fund to finance projects and attracting sovereign funds through various incentives are effective means to inject capital in the infrastructure sector to ultimately boost the economy.

Industry experts and survey respondents also suggested that privatising public-sector banks and granting licences to financial institutions could help infuse capital and increase competition.