The most anticipated Union Budget-2022 was finally presented in the parliament today by the Union Finance Minister Nirmala Sitharaman. This time the budget raised capital expenditure by 35.4 percent. In support of growth plans, the economy has set an annual spending target in which Sitharaman proposed an increase to $ 39.5 trillion ($ 529 billion).
Meanwhile, the budget-2022 announcements have given a boost to many sectors, leaving the rest disappointed along with a lot of aid and disadvantages.
The Budget-2022 announced by Finance Minister Nirmala Sitharaman emphasized on to promote clean transportation which is beneficial for the electronic vehicle makers.Â
The Center hopes for revolutionary changes in the electric vehicle sector. The Center has announced a huge package to address the current difficulties for EV vehicle users. The latest budget announces the availability of infrastructure that can replace EV batteries as easily as petrol and diesel. It will also provide more incentives for the purchase of electric vehicles.
The real problem here is that no matter how much the Center says to increase the use of EV vehicles, conditions at the field level are not as expected. The main reason for this is the time it takes for the battery to charge in the case of EV vehicles. It takes at least two to five hours for the batteries of the respective EV vehicles to be fully charged. The EV boom is unlikely to occur unless a better solution to this problem is found. This brings the battery swapping policy to the center screen.Â
To which the center came up with a solution i.e., Battery Swapping Policy.
The Central Government has made several proposals in Budget-2022 with a view to promoting electric vehicles across the country. Finance Minister Nirmala Sitharaman has announced that the government will bring in a battery replacement policy for electric vehicles across the country. A battery swapping center will be set up every forty kilometers on national highways. If this policy is implemented, it will be possible to replace empty batteries with fully charged batteries in vehicles as easily as running out of petrol and diesel.
As a result, the fuel running out the problem will largely disappear. According to current EV vehicle models, the battery swapping process is a lengthy process in the case of a four-wheeler, but for two-wheeler EV vehicles, it takes less time.
Forward on Green‌ Energy
The Finance Minister has given a prominent place to alternative fuels in public transport. As part of this, huge allocations of Rs 19,500 crore were made. The Center will provide more incentives for the purchase of electric vehicles, in order to reduce the use of conventional vehicles. The Center is taking steps to further promote organic farming in the Ganga river basin. Will propose a clean energy action plan in 10 areas. The budget also mentioned that metro rail connectivity would be provided as per the requirements along with an allocation of Rs 20,000 crore for infrastructure in the transport sector.Â
Transport and Infrastructure
The government aims to aid infrastructure Within three years; remote roads, mass transit in cities, and 400 new “Vande Bharat” trains can be the focus going ahead. The key infrastructure company’s, including L&T Ltd., GMR Infrastructure Ltd., KNR Constructions Ltd., IRB Infra Ltd. Along with Corporation of India Limited, Alcargo Logistics Limited, Indian Railway Catering, and Tourism Corporation are in line.
The government has announced an allocation of Rs 600 billion for piped water to 38 million homes. In addition, due to heavy spending on logistics, metal manufacturers in India includes Vedanta Limited, Tata Steel Limited, JSW Steel Limited, Jindal Stainless Limited, Pipemakers Jain Irrigation Limited, KSB Irrigation Systems, Kirloskar Brothers Ltd‌.
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The Solar Sector
Budget-2022 addresses product-integration incentives worth Rs 195 billion to boost the production of solar modules locally. It will focus on the growth of leading panel manufacturers including Tata Power Limited, Suzlon Energy Limited, Adani Enterprises Limited, and Reliance Industries Limited.
Cement, Construction Sector
Cement, construction companies Ultratech Cement Ltd, Ambuja Cements Ltd, Birla Corporation, and ACC Ltd are likely to get more contracts as the government plans to build more houses for low-income families in cities.
Telecom sector
The decision of telecoms and data centers to launch a 5G spectrum auction in 2022 will be supported by the telecom sector.Â
Defense equipment manufacturers
They are likely to make huge profits with Sitharaman’s plan to allocate 68 percent of Sector Capex’s annual budget to defense equipment makers to local companies. L&T Ltd., Bharat Forge Ltd., Paras Defense, and Space Technologies Ltd. are the gainers. Among the drone startups Juice Numerics, New Space India Limited, and Botlab Dynamics will benefit.
Digital Currency
In the budget, the finance minister said the government was planning to launch digital currency which came out as a shock to people since India put a lot of regulations on digital currencies and also banned some of the cryptocurrencies in the country.
Traditional banking rules in the country are likely to change in line with the global shift towards virtual financial instruments. The move is likely to affect the country’s oldest lenders, State Bank of India Limited, Bank of Baroda, Canara Bank, Union Bank of India, Bank of India, and Punjab National Bank.
With the decision to impose a 30 percent tax on profits from digital asset transactions, including cryptocurrencies and non-fundable tokens, cryptocurrencies are unlikely to become less profitable. It will also affect crypto exchanges. Crypto trading platforms such as WazirX, Zebpay, CoinDCX, Coin Switch Kuber will be heavily impacted.
Coal, Thermal Power
Green Energy and a clean environment are the centers of the budget. In multiple aspects, it was emphasized for clean fuel and clean energy. Considering the world is moving towards electronic vehicles and solar energy the budget focused on proving huge incentives in this sector.
With this Coal India Limited. Coal and thermal-based companies like Singareni Collieries Co., Adani Enterprises Ltd. are unlikely to be severely affected.Â
The Center plans to withdraw stainless steel companies
From stainless steel, coated steel flat products, alloy steel bars, some anti-dumping and counter willing duties on steel have been imposed due to rising metal prices. Experts believe that this will have an impact on Jindal Stainless Ltd and Tata Metallics Ltd.
Automobile manufacturers
The EV makers have been hit hard by a shortage of global semiconductor companies. After the budget announcement, the atmosphere in the automobile sector looks depressing but things can be only prevailed going ahead.
Overall it was a progressive budget aimed at creating more infrastructure, more investments, more growth, more employment opportunities. The main highlight is the emphasis on the welfare of the poor.
The budget is aimed at further strengthening the economy, tackling the problems faced by the common man, and creating new opportunities. The dream of a good house, toilet, clean water, and gas connections will be realized for every poor person. Emphasizes modern internet connectivity. Assured a better future for the youth.
The government is paving the way for modern transportation in hilly areas like Himachal, Uttarakhand, and northeastern states. Farmers will benefit greatly from drones for irrigation and cultivation. This budget promoted natural cultivation in the river basin states along with the cleansing of the Ganges.
Trains, digital currency, 5G services, National Digital Health Ecosystem, and much more as been bought to light.
Encouragement for Agri startups, such as a package for the food processing industry, will greatly increase farmer income. There are other schemes in this budget along with a loan guarantee. The MSME sector will benefit greatly from the fact that 68 percent of the defense budget is reserved for the domestic industry. In a nutshell, this is the ‘Spiritual India’ Budget that has been wholeheartedly welcomed by all sectors!
Nirmala Sitharaman has said that the government does not intend to increase the additional tax burden on the people in the wake of covid-19. She said the government did not want to earn a single penny from the people during this crisis. Impact on jobs ..!
Further, Sitharaman said the arrival of covid-19 had had a huge impact on jobs. Se, however, said that the government has taken a number of initiatives to address the issue of jobs.
Since India is the third-largest economy in the world the prices will go up and down for certain products and services since the budget.
According to the Union Budget-2022, a large number of commonly used items including mobile phones and mobile phone chargers are going to become cheaper. Customs duty on cut and polished diamonds and gems has been reduced to 5 percent. Finance Minister Nirmala Sitharaman has said that the exemption on agricultural implements and tools made in India will be extended.
Here is the list of goods and services that will see a price reduction and increase in the coming financial year.
Decrease
- Clothes
- Gems, diamonds.
- Mobile phones
- Mobile phone chargers
- Custom duty reduction on chemicals required for petroleum products
- Some chemicals, including methanol
- The discount on steel scrap will apply for another year.
- Smartwatch
- Hearing aids
- Farm tools
- Coca beans
Increase
- All imported goods
- The increase in tariffs on umbrellas will push up their prices.
- 30% tax on crypto transactions
- Â Imitation jewelry
- Speakers, Headphones, Earphones
- Solar Cells, Modules
- X-ray machines
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