Anjuum Khanna – Winners and Losers of Union Budget 2021
                     Anjuum Khanna – Winners and Losers of Union 
Budget 2021
Anjuum Khanna – Here are some sector-wise 
highlights that Finance Minister Nirmala Sitharaman 
has promised an unprecedented Union budget aimed 
at buoying the economy. Finance Minister Nirmala 
Sitharaman said that the Budget proposals for this 
financial year rest on six pillars that is health and well-
being, physical and financial capital and infrastructure, 
inclusive development for aspirational India, 
reinvigorating human capital, innovation and R&D, 
and ‘Minimum Government, Maximum Governance’. 
The risk-on budget keeping fiscal deficit at 6.8 
percent for FY22 with a 35 percent jump in capital 
expenditure is probably what the weak economy 
needed in a pandemic that pushed the country into 
a technical recession. Some Significant 
announcements included a slew of hikes in custom 
duties to benefit the Make in India, also, some 
proposals to disinvest two more PSBs and a general 
insurance company, and numerous infrastructure 
pledges to poll-bound States. Fiscal deficit stands at 
9.5% of the GDP, and is estimated to be 6.8% in 
2021-22. Personal income tax slabs remain as is.  
Here’s a short list of winners and losers from 
Monday’s budget announcements
Winners:
Healthcare
The Covid-19 pandemic prompted Nirmala Sitharaman to boost 
healthcare spending by 137% this year, an improvement over 
the less than 2% of gross domestic product that India has 
traditionally spent on health annually. 
Real Estate and Constructions
Real estate developers are set to benefit from plans for a new 
development finance institution to meet funding requirements 
for infrastructure related projects.
Metal Makers
The announcement of an additional 11,000-km of highways and 
metros, along with rapid rail transport projects for 27 cities ,and a 
long-awaited vehicle scrappage policy boosted stocks of metal 
companies demand for steel and aluminum. 
Textiles
Sitharaman’s announcement of the establishment of seven mega 
textile parks to be launched in three years could boost the sector.
Losers
Bonds
A higher-than-expected $164-billion borrowing plan for the 
new fiscal year hit India’s sovereign bonds, which slid after the 
announcement. The government also plans to raise another 
800 billion rupees by this fiscal year, on top of its projection of 
record 13.1 trillion rupees of debt sales.
Exporters
India raised import tariffs on solar and mobile-phone equipment 
and auto parts, among others. Announced with a view to 
boosting local manufacturing in line with the government’s 
focus on self-reliance, the move may raise further concerns 
about India’s trade policies that are increasingly seen as 
protectionist.
Farmers/ Rural Area
The farm sector received attention but there were no major 
announcements that could help address the ongoing unrest on 
New Delhi’s borders, where thousands are protesting for the 
repeal of new agriculture laws. There were also no significant 
announcements on boosting consumption in the rural economy. 
The budget estimate for expenditure on the rural jobs scheme 
was 730 billion rupees for the financial year 2022, compared to 
the 1.1 trillion expenditure in the revised estimate for FY21.
IT Firms
India’s biggest services export contributors received little 
attention in the budget. There were no sops to boost the 
future of information technology from Sitharaman this year 
for companies including TCS Ltd., mid-sized firms like LTI, 
Mindtree, Persistent and Hexaware.
About Anjuum Khanna
Anjuum Khanna helps leaders and teams discover 
the magic of conversations (leads). He is a specialist 
in Fintech, eCom Startups, BPOs, Telecom & D2H, 
spearheaded domestic & Global Business 
Operations, etc fields.  In his free time, he loves 
reading and blogging.