The Union Budget for FY21-22 is not only historic but also path-breaking with counter cyclical fiscal policy calibration with an emphasis on building modern infrastructure. The twin challenges of rekindling economic growth and well-defined fiscal consolidation roadmap are addressed elegantly in this budget. A slew of measures announced in the health and education sectors are the foundation for sustainable development of Indian Economy.
The financial sector reforms namely creating an institutional structure for financing infrastructure, recapitalization of banks, increased FDI threshold in the insurance sector to 74%, framework for addressing stressed assets in the banking sector, single securities market code are the hallmarks for a healthy financial sector to accelerate the financing and augment credit flow to the economy.
The steel sector, in particular, will benefit immensely from the surge in demand due to higher outlays on infrastructure and public capital spending.