By Glenn Saldanha

Budget 2020-21: With the overall global economic situation looking grim, and the world on the verge of another healthcare crisis, the Indian economy is under severe pressure and will continue to remain under pressure for a long time. The country has already been impacted as a result of the global slowdown, which has resulted in lower GDP growth and falling consumption.

Against this backdrop, the Union Budget for FY21 has tried its best to provide stimulus to the economy. While finance minister Nirmala Sitharaman has continued with her investment in infrastructure, education and even provided relief to a section of individual taxpayers, we could have seen some more measures in this Union Budget, which could have resulted in boosting overall consumption.

While the GDP growth has been pegged to be around 6%—and we will have to make do with this new normal—the good aspect has been that we have managed to keep inflation under control.

The ongoing investments in infrastructure will continue to boost rural jobs, and will also power growth in these areas, in addition to overall growth.

In addition, the impetus given to the agricultural sector is much needed, especially with the focus of the government on doubling farmers’ incomes by 2022. The 16-point plan for the agricultural sector, and the focus on comprehensive measures for over 100 water-stressed districts in the country, should give a good boost to rural income.

On the corporate side, while the abolishment of the dividend distribution task (DDT) will be welcomed, corporate India has been looking for more stimulus to boost consumption.

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In addition, the measures undertaken for the stricken real estate sector should give some boost to this key sector.

Once again, there is nothing much for the pharmaceutical industry, which is one of the truly global industries that India has—with Indian medicines being exported to nearly each and every country in the world.

The pharmaceutical sector has been struggling over the past several years, and the sector needed a boost from the government to revive growth—and also incentives—as we transition from being a supplier of generic medicines globally to that of an innovator industry.

The writer is Chairman & MD, Glenmark