The budget of 2021 was a turning point in the economic policies of the nation. It is important as the government has to make decisions based on the current scenario. The policies had to be made such that it would provide a sense of relief to India Inc. and its functioning. The budget is expected to lead to an increase in company registration in India.

What is India Inc.?

India Inc. is a term that has been often used by the media sector to describe the formal employment sector of the nation. The Formal employment sector comprises public limited companies and private limited companies. The term India Inc. is used to describe the collective identity of the formal sector in terms of demand and requirements.

How has the 2021 budget performed to expectations?

The 2021 budget was expected to bring out a lot of policies for the benefit of the formal employment sector. A lot was expected from the budget to promote certain sectors, bring relief to the taxation methods, etc. after a huge hit due to the covid-19 pandemic. Some of the major demands of the formal sector from the budget were: 

• The need to improve the standard deduction from salaried individuals,

• The need to improve medical insurance of salaried people, 

• Revision on the compliance policies for foreign investments

• Boost for the hospitality industry

• Reduction of taxes for the automobile industry

• The influx of monetary assistance to the agriculture sector

• Increase in health care spending

• Revision of policies for foreign funding 

All these are the major demands and the budget did answer a lot of issues. It did provide relief of taxation and influx of investment in several sectors. It allowed for the investment by NRIs in the OPC sector. It allowed for the growth of startups in India by giving the required platform. It promoted the concept of Make in India by providing relaxation in policies or company registrations.

Conclusion

The Budget has had a huge impact on the structuring of the formal sector through the various policies for growth and development. It has allowed for the development and progress of existing companies while also promoting the emergence of startups. It has led to the emergence of several private limited companies as well as public limited companies. The changes or envisions done to the existing policies have to an extent solved major issues in the formal sector. It has helped provide the boost needed by the various companies after suffering due to the pandemic. The budget has brought the much-needed changes to cater to the situation and also stand head to head with other countries.