Union Budget 2021-22 : Industry Briefs
The much awaited Union Budget 2021-22 made proposals for six pillars — health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and 'Minimum Government, Maximum Governance'. Below is the industry briefs of Beauty & Wellness, Healthcare, Hospitality & Tourism, Entrepreneur & Construction.
Beauty & Wellness
The Indian Beauty and Wellness Market, valued at INR 901.07 billion in 2018, could reach INR 2,463.49 billion by 2024, expanding at a compound annual growth rate of 18.4% from 2019 to 2024. The rise of consumerism and consciousness around appearances among the middle-classes drives the growth of this sector.
Although, there is no denying to the fact that each and every sector was drastically affected by the pandemic, but unarguably the medical and healthcare sector was probably put to the toughest test by the Covid19 Outbreak. And hence, it was essential that the 2021 Union Budget gave a major boost to the sector, and this is what this piece aims to address.
Hospitality & Tourism
Hospitality industry was the hardest hit industry owing to the inevitable lockdown put by the government considering the virulent and deadly nature of the Covid-19 virus. According to the Indian Association of Tour Operators, loss of opportunities in the hotel, aviation, and travel sector together may amount to an estimated $85 Bn.
For the past three years, with the introduction of GST, new safety norms, insurance regulations, axle and emission norms the automobile sector has faced massive sluggishness. Therefore, it was expected that the automobile would be placed at the centre of economic activities in budget 2021-22.
Budget 2021 focuses on growth and investment while keeping the tax regime stable that will invite investment from foreign investors. The impact of the budget on infrastructure and construction is visible on the ground that the budget gives concessions to purchase home and liberalizing the loan conditions.