Budget 2021 | 'Enhanced capex for infrastructure and manufacturing are likely to be key in generating employment'

The Union Budget has set the foundation for the lifting of Indian economy from under $ 3 trillion to $ 5 trillion. The Budget focusses on making India atmanirbhar by investing big in infrastructure, manufacturing and healthcare, to be aptly funded through higher fiscal deficit, in a benign interest rate scenario.

The enhanced capex for infrastructure and manufacturing measures are likely to be key in generating overall demand as well as drive employment generation. Monetization of infra assets, divestment plans of non-core asset and conducive tax compliance is likely to attract the much needed foreign capital.

Additionally, measures to strengthen domestic financial sector through capitalization of PSU banks, proposal to set up a Development Financial Institution, and stabile direct and indirect taxes are likely to provide the much desired impetus to growth and equity markets, post Covid induced economic pain.