Experts and ordinary citizens of the country had many expectations that the budget would address issues related to the ordinary citizens, but to our disappointment, the government did not have many gifts in store.
India’s Minister of Finance and Corporate Affairs Nirmala Sitharaman unveiled plans for an auction and confirmed that local telcos would launch 5G services commercially in the fiscal year ending March 2023.
The focus of the Union Budget was on Atmanirbhar in the defence manufacturing and research segment, that’s why out of ₹39.45 lakh crore of budget, almost 15% of the amount – ₹5.25 lakh crore has been allocated to the Ministry of Defence.
Cement & Construction
The government is planning to build affordable homes for the low-income groups, which will boost the market for the sectors such as industrials, cement, engineering, and major construction companies such as UltraTech, Ambuja, and Birla.
The finance minister of India announced to allot ₹19,500 crores to facilitate the manufacturing of solar modules under the government’s flagship PLI (Production Linked Incentive) scheme, which will create 60 lakh new jobs in the near future.
Ahead of the 2024 elections, the government plans to build robust roads in rural areas and modern transit options in cities, along with 400 Vande Bharat trains in the coming three years, which will amplify the infrastructure industry and its key players.
The piped water has been a dream for many households in India, and to cure that, the government has allotted 600 billion rupees to provide piped water to 38 million homes in India, which will benefit India’s metals manufacturers.
The adoption of EVs instead of fuel-based vehicles is soon going to be the next big thing, and to make it possible briefly, the government has announced to promote clean transport technology along with a battery swapping policy for electric vehicles.
The government has reduced the custom duties on gold & silver by 10%, which means the prices are going to fall, and at the same time, stainless steel sees a 7.5% cut in customs duty. Along with these precious metals, copper and iron prices will see a price drop.
We’re surrounded by electronic devices that help us make our life easier. The government knows it well, and that’s why they decided to increase the customs duty by 2.5% on a few things, such as mobile phones, air conditioners and refrigerators.
The government plans to develop public transportation to the next level, and as a result, they’re increasing the import duties on auto parts by 15% and possibly we’ll witness a rise in fuel costs too.
The budget indicates that the Reserve Bank of India will introduce the digital rupee in FY 2022-23, but at the same time, it has also declared that any earnings from the digital asset transactions, including cryptocurrencies and NFTs, will be taxed at the rate of 30% per cent.
Public Sector Banks
The finance minister had announced a ₹20,000-crore capital infusion for Public Sector Banks, but at the same time, the government plans to start a digital currency to cope with the global world, which is certainly going to affect traditional banking in the country.
In the latest budget, the government revoked the anti-dumping and countervailing duties on select steel products, affecting the giant stainless steel producers, Jindal Stainless Ltd. and Tata Metaliks Ltd.
Coal & Thermal Power
The government is planning to push for the use of biomass in coal-fired thermal power plants for environmental purposes, which might upset the biggest coal importers in the country.
The import duties on fabrics like cotton and silk are going to rise by 10% and 5%, respectively. In contrast, nylon witnesses a reduction of 5% in customs duty.
The Longest Speech Ever
The Prime Minister said the Union Budget 2022 was more for poor and middle-class citizens of the country, but nobody’s from this section looks happy, especially after listening to the 160-minutes speech of the Finance Minister, which is considered the longest one in independent India.