2021-22 budget expected to boost rural economy
By Bhawana Anand – 03 February 2021
The strong push in the development of highways, railways and airports can accelerate the opening of the rural economy
RUral India was relatively less affected by the pandemic, with TTier II and III markets offering the hope of reviving the economy and generating demand, and also promising better opportunities for the advertising industry. the Union Budget 2021-22 focus on infrastructure, health and packages for agriculture has still growth prospects of those markets.
As Veerendra Jamdade, CEO of Vritti Solutions Ltd. shares, “The budget contains all the ingredients to revive the rural economy, benefit farmers, improve health infrastructure and increase public spending on rural and urban infrastructure. All of this indicates that the budget focused on rural areas. This is essential as agriculture is still the engine of India’s economy.”
There are Also highway pushDevelopment, railways and airport development, which Veerendra feels is the key to opening up the economy. “The allocation of Rs 20,000 crore for bank recapitalization is the need of the hour to revive the underperforming banking sector,” he adds.
He repeated that focus on rural infrastructure key to boost–start the economy post-pandemic. Initiatives such as LPG free and Ujjwala, 86% coverage under one nation, ration card, the doubling of the allocation to MSMEs, the application of mminimum wage to all categories of workers, inclusion of women in all categories of labour, compensation for one-person businesses, bonus AGrayVSredit objective, increase in the rural infrastructure development fund, application of new AGray Infra cess, development of fishing ports, doubling of the micro irrigation corpus, and provision of infra funds to the APMC, will be taking the rural economy to new heights, he feels.
“The PThe proposal to revise the definition of small businesses by increasing their capitalization threshold is welcome and will certainly contribute to the ease of doing business,he summarizes.