Budget 2021-22 likely to boost rural economy

Rural India has been relatively less affected by the pandemic, with tier II & III markets offering hopes of economy boost and demand generation, and also promising better opportunities for the advertising industry. The Union Budget 2021-22 focusing on infrastructure, health and packages for agriculture has further boosted the growth prospects from these markets. 

As Veerendra Jamdade, CEO, Vritti Solutions Ltd., shares, “The budget has all the ingredients to lift the rural economy, benefit the farmer, raise healthcare infrastructure and increase government expenditure on rural and urban infrastructure.  All of this indicate that the focus of the budget has been on rural. This is essential as agriculture still drives the Indian economy.”

There is also thrust on highways development, railways and airport development, which Veerendra feels is the key to opening of the economy.  “The allotment of Rs 20,000 crore for bank recapitalization is the need of the hour to revive the underperforming banking sector,” he adds. 

He reiterated that rural infrastructure focus is the key for kick-starting the economy post pandemic. Initiatives such as free LPG and Ujjwala,  86% coverage under one-nation, one-ration card, the doubling of MSME allocation, the application of minimum wages to all categories of workers, inclusion of women in all categories of workforce, allowance of one person companies, enhanced AgriCredit target, increasing rural infra development fund, application  of new Agri Infra cess,  development of fishing harbours, doubling of micro irrigation corpus, and availing of infra fund to APMCs, will take rural economy to new heights, he feels. 

“The proposal to revise definition for small companies by increasing their threshold for capitalization is welcome and will certainly help in the ease of doing business,” he sums up.