50 percent companies trust … Budget will increase business

50 percent of the country’s companies say that the general budget to be presented on February 1, 2021 will be a business-enhancer. At the same time, most industries are optimistic about the economic recovery and increasing demand.

According to a survey by released on Friday, some respondents believe that increasing the personal tax exemption limit in the general budget will boost private consumption and investment. 50 percent said that more attention needs to be paid to the demand front as an improvement in demand will boost the economy.

The survey said that the movement restrictions due to the corona epidemic and financial and health concerns of consumers have affected consumption. The survey is based on interactions with heads of nine industries, which have been prepared on 12 questions such as economic recovery and ease of doing business.

Higher savings impact demand

The online survey says that during the epidemic, there has been more emphasis on saving as a precautionary measure. This has impacted demand, which may remain below the pre-Covid-19 level for some time.

70 percent of the respondents in the survey believe that the government’s emphasis in the general budget may be on increasing demand, which will have an impact on the economic recovery.

Emphasis will have to be given on increasing employment

According to the survey, industry leaders believe that to boost the economy, the government will need to increase employment and especially employ low-skilled employees. This will not only increase income but will also have a positive impact on demand.

At the same time, 50 percent of the industries associated with manufacturing said that giving financial assistance to Micro, Small and Medium Enterprises (MSMEs) would help the industries to overcome the effects of corona rapidly.

Self-reliant India and PLI schemes help

The latest business data shows that the economy is on track. Schemes such as ‘Self-reliant India’ and ‘Production Based Incentives’ (PLI) have proved to be self-reliant and help to sustain the country’s economic growth.

On the economy front, most industry leaders believe that increasing infrastructure spending will give a boost to the sectors concerned.