Budget 2022: Govt should formulate measures to revive consumption

The Union Budget 2022 will be crucial in defining the way forward for the Indian economy amid the COVID pandemic. The Union Budget 2022-23 is speculated to ensure empathetic policy support for the lives and livelihoods facing unprecedented challenges. It will be a pivotal event since it will set the tone for the ensuing fiscal year. This is the third Budget amidst the pandemic and it is believed that the rising uncertainties from third wave of pandemic will force the government to push the fiscal pedal more. Thus, the government should reconsider taxations and emphasize more on sectors that emerged as growth propellers during COVID-19.

Digital media usage has tremendously increased as people spent more time at home due to lockdown and restrictions. The pandemic is leading many to identify and adopt novel digital communication methods both for personal and professional usage. Apart from sudden surge in use of social media apps, the unprecedented uptake in video conferencing hardware and software was remarkable. Concepts like Remote Collaboration, Distance Learning and Hybrid Working fuelled the demand of efficient Video Conferencing Devices that could make up for the hindered physical interactions.

IT Communication is gradually becoming fundamental to everyday life with the interactive solutions available in the market. These solutions include webcams, interactive displays, sound bars and speakerphones which have enabled life and businesses to run smoothly all across the globe. The recent Digital Rallies for Elections also had a huge scope with Interactive Displays and Video Conferencing devices. Thus, at MAXHUB, we believe these trends are upcoming and here to stay to fit the new normal.

Domains like political communication, journalism, education & learning, health communication, science communication and many more are slowly embracing these trends. Benefits of these devices should be available to all majority of the businesses. It is possible via government support to reduce tax and pass on the benefit directly to the users. Therefore, the upcoming Budget 2022 should consider relief to Information Technology Enabled Products and Services which have played a key role in keeping the economy up in the pandemic phase.

Indian Government’s focusing on strengthen country’s electronics industry is quiet prominent. Initiatives like “Digital India”, “Make in India”, “Digital Election Rallies”, Scheme for Semiconductor Manufacturers bolster the claim. Government of India has designed these programs to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure in the country. Also, focusing emphasis on OEMs and ODMs has played a critical role. In a bid to boost local manufacturing and promote self-reliance, the budget should include strong proposals to help India’s industrialists and manufacturing sectors grow.

The impact of economic reform will be critical for every sector as India’s pursuit is to maintain its edge as a prominent global economy and further enhance its global positioning.

To summarize, the government should formulate measures to improve the existing setup and revive consumption for economic growth. Increasing investments in infrastructure development, skill upgrading, and digital augmentation could help reignite consumption in the economy. We are expecting a budget that is supportive of this sector, thereby helping companies thrive and drive India’s consumption economy.

Published on: Monday, January 31, 2022, 10:11 PM IST