After the coronavirus impact shrank the economy in the last two quarters, Prime Minister Narendra Modi’s government wants to boost spending on projects for roads, ports and pipelines in the next fiscal year to revive businesses and generate jobs.
Reports say that BJP feels that while the poor received free rations and businesses got state-guaranteed loans and other concessions, the economy will benefit from slimming the tax bill for the middle class with more generous standard deductions.
The middle-income group is feeling a lot of pinch, and they need some support. Incentivising consumption by them would also help the industry, say many. For medium-sized and small businesses, the government could also look to lower the import duties on some raw materials such as copper and base metals.
With the pandemic having disrupted almost all industries, there is no doubt that industry at large and the economy in general needs handholding. Nevertheless, three sectors that must have specific attention to revive the economy are agriculture, healthcare and infrastructure.
While the case for agriculture and healthcare needs no rationale, the importance of infrastructure calls for some elaboration. First, agriculture and healthcare both require modern infrastructure to ensure better outcomes, respectively.