The Union Budget for the year 2022-23 will be presented by Finance Minister Nirmala Sitharaman in the Parliament on February 1, 2022, at 11 am.
While most experts do not expect the announcement of any major changes in this budget proposal. However, they anticipate some relief for certain stressed sectors.
While most sectors have faced headwinds due to the pandemic, brokerage houses feel that relief to certain sectors will be essential for the revival of the economy.
Let's take a look at what certain key sectors expect from the budget:
Hit hard by the pandemic, the automotive industry continues to face various challenges. The industry seeks a uniform Goods and Services Tax (GST) of 18 percent, down from 28 percent on all auto parts, to curb the impact of counterfeits in the aftermarket operations.
Brokerages also expect the government to provide incentives and cut import duty on electrical vehicles.
As per brokerages, the industry expects the government to announce incentives for energy-efficient products as well as some rationalisation in GST for electrical products like air conditioners, televisions, etc. They also expect some other reforms to boost manufacturing like the expansion of the PLI scheme, focus on the Make in India scheme, etc.
Brokerages expect a revival of capex cycle through a substantial increase in allocation for capital expenditure towards infrastructure development. They also expect an increase in allocation towards railways, renewable energy, roads, ports, urban development, defense, etc.
Healthcare and Pharma
This sector is likely to be one of the focus points in the upcoming Budget as the pandemic exposed the dire need to boost healthcare infrastructure, research and development, clinical trials, etc. The sector expects tax incentives for investment in setting up innovation and R&D-based activities. Also, further focus on Ayushman Bharat is likely in this budget.
Travel and Tourism
This has been one of the worst affected sectors due to the pandemic. Brokerages suggest that the government may reduce import duty on aviation fuel for the aviation sector. Further, the sector also expects other relief measures like an extension of loan moratorium with lower interest rates and rationalisation of taxes.