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Experts discuss impact of Budget on Indian economy

Feb 03, 2021

MVIRDC World Trade Center Mumbai organised an interactive webinar on “Implications of Union Budget 2021-22”. On February 1, 2021, India’s Finance Minister tabled the Union Budget for 2021-22 in the Parliament. While presenting the budget, Hon’ble Minister made several policy announcements to stimulate economic growth, promote infrastructure development, enhance healthcare infrastructure and address bad loan problem in the banking system. The webinar was organised jointly with All India Association of Industries (AIAI) and it discussed the implications of the budget on trade and industry. The event was addressed by Mr. Himanshu Tewari, Partner, Trade and Customs, KPMG Assurance and Consulting Services LLP, Mr. M.S. Mani, Partner, Deloitte India, Ms. Aditi Nayar, Principal Economist - ICRA Limited and Mr. Firoze B. Andhyarujina, Senior Advocate, High Court Mumbai.

Mr. Andhyarujina informed that the budget has carried out 79 amendments in Income Tax Act and has taken decisive steps to reduce disputes and litigation. Specifically, he welcomed the constitution of Dispute Resolution Committee to reduce litigation for small tax payers. He opined that the government’s move to include capital gains, dividend income and interest income in the pre-filled tax returns will improve ease of filing taxes for small tax payers.

Speaking on this occasion, Mr. Tewari suggested that the government should adopt a two-lane highway approach to indirect tax compliance to improve ease of doing business for small enterprises. Under this approach, small exporters and importers, who have limited financial resources to hire experts, should be assisted by Turant Suvidha Kendras on tax filing procedures.

Also, the customs authority should spare small taxpayers from investigation or levy of penalty for non-compliance and the government may allow large companies to comply with tax procedures through self-certification, Mr. Tewari suggested.

Mr. Mani highlighted some of the progressive steps taken by the government to improve ease of trading across border. In her remarks, Ms. Nayar pointed out that the increased allocation for capital expenditure and renewed thrust on infrastructure augurs well for employment generation and demand.

Delivering welcome address for the event, Mr. Vijay Kalantri, President, All India Association of Industries suggested the government to take steps to reduce cost of raw materials for small enterprises in India. He said, “The government should persuade local manufacturers of steel and other raw materials to supply these items to MSMEs at international prices so that local MSMEs can be globally competitive.”

Capt. Somesh Batra, Vice Chairman, MVIRDC World Trade Center Mumbai proposed vote of thanks for the event.

The webinar was attended by representatives of MSMEs, consular corps, financial institutions and academia.