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By Dr. Arun Singh,
Chief Economist
Dun & Bradstreet India

Union Budget 2020-21:Impact Analysis

The enhanced focus of budget on ‘Aspirational India’ is indicating the fact that government is committed to support and empower the social fabrics of India. The announcement in the budget is ranging from traditional sector to modern sector. From traditional sector perspective, this budget chooses to adopt the path of structural changes in agriculture sector by way of giving input sovereignty, insurance and making provisions for cold storage and transportation of Agri produce; rather than putting money in farmer’s bank accounts. On the modern sector perspective, the government took major step towards setting up the ‘New India’ by giving boost to Industry 4.0, New Age society, Data Centre Parks and Quantum Computing & Technology. Further, the various announcements related to increase in deposit insurance amount, enabling NBFCs to extend invoice financing to MSMEs, enhanced focus on improving the infrastructure sector are expected to have far reaching impact on the sustainable economic growth going forward. Furthermore, the disinvestment target needs to be monitored carefully as government have huge planned expenditure in FY21. Any short fall will impact fiscal deficit target for fiscal year 2020-21.

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