<
Welcome!

Top 5 sectors to invest in Post Budget 2022-23 Announcement

false

The recently announced Union Budget offered an indication as to where the government was planning to lead India, with certain sectors like infrastructure, telecommunication, healthcare, etc., getting some much-needed boost. These are the sectors are that set to receive an infusion of funds.

Infrastructure 
The budget announcement for the infrastructure sector focused on job creation through infrastructure development. The government aims to create 60 lakh jobs within five years, with the PM GatiShakti program coming into play to accelerate economic growth and development. 

As seen in the budget, the new approach will be driven by seven engines—roads, railways, airports, ports, mass transportation, waterways, and logistics infrastructure. For additional support, the public capital expenditure has been enhanced by 35.4% at 7.50 lakh crore. These benefits will be seen in large-scale manufacturing, Micro, Small and Medium Enterprises (MSMEs), infrastructure, and services sectors.

Budgetary allocations for water supply, housing, and roads have also been increased: 

  • Rs 60,000 crore for water supply estimated to cover 3.8 crore households
  • Rs 48,000 crore for housing to provide 80 lakh houses to urban and rural areas
  • Increase in the road network by 25,000 km


Budget 2022 also focuses on green infrastructure with sovereign green bonds. The objective is to fund environmentally friendly projects and promote sustainability. 
Designed specifically for an Application Programming Interface (API), a Unified Logistics Interface Platform (ULIP) will ensure the exchange of data among various modes of operations. This would ensure efficiency in:

  • Movement of goods through different channels
  • Reduction in logistics time and cost 
  • Enabling just-in-time management of inventory
  • Eliminating tiresome documentation
  • Providing all stakeholders with real-time information 


E-vehicles
The Union Budget has welcomed a new battery swapping policy. This has been brought to light given the space constraint for charging stations in urban areas. Going forward, a faster rollout of battery swapping centres is also expected. The objective of the new policy is to save time for e-vehicles owners, reduce initial costs, and associate that cost with vehicle usage.

This is likely to strengthen the ecosystem of the EVs industry. The move aims to boost sales of e-vehicles and encourage businesses to incorporate EVs, especially those involved in the delivery and car aggregation.

Telecommunication
A significant development that the telecommunication is looking forward to is the auctions for 5G spectrums, which will be conducted this year with 5G mobile services expected to rollout by 2022-23. The FM will be awarding contracts of laying optical fibres in all villages, under the BharatNet Project through PPP (public-private partnership) in 2022-23. Furthermore, 5% of the annual collections under the USOF (Universal Service Obligation Fund) will be made to enable affordable broadband and mobile service proliferation in rural and remote areas. 

Agriculture sector
The overall budget for the agriculture sector proposed promoting Kisan Drones, chemical-free natural farming, and public-private partnerships to deliver digital and high-tech services to farmers across the country. The budget has set aside Rs 2.37 lakh crore worth of MSP (Minimum Support Price) to go to paddy and wheat farmers for taking up agro-forestry.

Healthcare sector
Bearing in mind the ongoing pandemic and mental health concerns, the healthcare sector plans to set up a National Tele-Mental Health programme in India. It was announced that 23 tele-mental health centres would be launched with the National Institute of Mental Health and Neuro Sciences (NIMHANS) as the nodal centre. A National-Tele Mental Health programme will also be launched, which will be supported by the Indian Institutes of Technology (IIT). 

An open platform for the National Digital Health Ecosystem is expected to be rolled out. It will include digital registries of health facilities and health providers, unique health identity, and universal access to health facilities. 

Additionally, the Finance Minister added that 95% of 112 aspirational districts had made significant progress in health. In the months to follow, efforts would now be made to work on districts that are lagging. 

Read more on the Union Budget Schemes announced here.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.


close