The Central Government is&nbsp;likely to increase allocations toward its annual food subsidy spending by 4 to 6 per cent in the Union Budget 2021&nbsp;to cover the cost of running the world's biggest food welfare programme.

The Economic Survey presented by Finance Minister Niramala on Friday stated: “While it is difficult to reduce the economic cost of food management in view of rising commitment towards food security, there is a need to consider the revision of CIP to reduce the bulging food subsidy bill.”

For Union&nbsp;Budget 2021-22,&nbsp;India's total outlay toward the food subsidy is expected to cross 2.1 trillion rupees ($28.7 billion), but the budgeted allocation is likely to go up by only 4 to 6 per cent from 1.16 trillion rupees earmarked in the previous year.

The allocation for food subsidy is likely to go up to 1.22 trillion to 1.24 trillion rupees mainly due to fiscal constraints, said the sources.

Finance Minister Nirmala Sitharaman is expected to outline the allocation when she presents the 2021/2022 budget on Monday.

Since the government's allocations would fall short of the required funds to finance its mammoth food welfare programme, government-backed Food Corporation of&nbsp;India&nbsp;(FCI) will likely have to borrow more than 800 billion rupees ($11 billion) in 2021/22, the sources said.

FCI, the main grain procurement agency, buys rice and wheat from farmers at guaranteed prices and resells them at a fraction of market rates to 67 per cent&nbsp;of&nbsp;India's 1.38 billion people.

The government pays the difference between FCI's procurement prices and sales prices by allocating funds for the food subsidy in its annual budget.

For the past few years, the government has not fully compensated FCI, forcing it to borrow. As a result, FCI's total debt has ballooned to 3.81 trillion rupees ($52.30 billion).

In the first nine months of the 2020/21 fiscal year, FCI borrowed 460 billion rupees to meet its expenses.

In the past decade, FCI's expenses have risen sharply as the guaranteed prices at which is buys common rice has climbed by 73&nbsp;per cent&nbsp;and wheat by 64 per cent, while the prices at which FCI sells rice and wheat have remained unchanged.

In its annual economic survey released on Friday, the&nbsp;Indian government said the food subsidy bill is becoming "unmanageably large", and added there was a need to hike the prices of grains sold via the government's public distribution system to reduce the food subsidy bill.

The Central Government is likely to increase allocations toward its annual food subsidy spending by 4 to 6 per cent in the Union Budget 2021 to cover the cost of running the world's biggest food welfare programme.

The Central Government is likely to increase allocations toward its annual food subsidy spending by 4 to 6 per cent in the Union Budget 2021 to cover the cost of running the world's biggest food welfare programme. The Economic Survey presented by Finance Minister Niramala on Friday stated: “While it is difficult to reduce the economic cost of food management in view of rising commitment towards food security, there is a need to consider the revision of CIP to reduce the bulging food subsidy bill.” For Union Budget 2021-22, India's total outlay toward the food subsidy is expected to cross 2.1 trillion rupees ($28.7 billion), but the budgeted allocation is likely to go up by only 4 to 6 per cent from 1.16 trillion rupees earmarked in the previous year. The allocation for food subsidy is likely to go up to 1.22 trillion to 1.24 trillion rupees mainly due to fiscal constraints, said the sources. Finance Minister Nirmala Sitharaman is expected to outline the allocation when she presents the 2021/2022 budget on Monday. Since the government's allocations would fall short of the required funds to finance its mammoth food welfare programme, government-backed Food Corporation of India (FCI) will likely have to borrow more than 800 billion rupees ($11 billion) in 2021/22, the sources said. FCI, the main grain procurement agency, buys rice and wheat from farmers at guaranteed prices and resells them at a fraction of market rates to 67 per cent of India's 1.38 billion people. The government pays the difference between FCI's procurement prices and sales prices by allocating funds for the food subsidy in its annual budget. For the past few years, the government has not fully compensated FCI, forcing it to borrow. As a result, FCI's total debt has ballooned to 3.81 trillion rupees ($52.30 billion). In the first nine months of the 2020/21 fiscal year, FCI borrowed 460 billion rupees to meet its expenses. In the past decade, FCI's expenses have risen sharply as the guaranteed prices at which is buys common rice has climbed by 73 per cent and wheat by 64 per cent, while the prices at which FCI sells rice and wheat have remained unchanged. In its annual economic survey released on Friday, the Indian government said the food subsidy bill is becoming "unmanageably large", and added there was a need to hike the prices of grains sold via the government's public distribution system to reduce the food subsidy bill.

Union Budget 2021: Food subsidy allocation likely to increase by 4-6%

President Ram Nath Kovind today addressed the members of both Houses of Parliament on Friday, a customary speech delivered ahead of the commencement of the Budget session.&nbsp;

Members of both the Houses seated in three different locations for the first time as part of precautions against COVID-19.

As many as 18 Opposition parties are boycotting the President's address in solidarity with farmers protesting against the three farm laws.

"Joint session of Parliament amid Corona pandemic is essential. It's a new year and a new decade and we're also entering into the 75th year of independence. Today all MPs are present here with message &amp; trust that however tough be the challenge neither we nor India will stop," said President Ram Nath Kovind.

"In this fight against the pandemic, we lost many citizens. Former President Pranab Mukherjee passed away in this Corona period. Six MPs left us untimely due to COVID. I pay my tribute to all of them," he added.

"It is a matter of pride that India is running the biggest vaccination program in the world. Both vaccines of this program are made in India. In this crisis India shouldered its responsibility towards mankind &amp; provided lakhs of doses of vaccines to several nations," President said.

The most important items on the agenda in the session are the passage of the Budget and related documents — the Economic Survey for 2021-22 on Friday, The Union Budget on Monday, and the report of the Finance Commission.

(With inputs from agencies)

President Ram Nath Kovind today addressed the members of both Houses of Parliament on Friday, a customary speech delivered ahead of the commencement of the Budget session.

President Ram Nath Kovind today addressed the members of both Houses of Parliament on Friday, a customary speech delivered ahead of the commencement of the Budget session. Members of both the Houses seated in three different locations for the first time as part of precautions against COVID-19. As many as 18 Opposition parties are boycotting the President's address in solidarity with farmers protesting against the three farm laws. "Joint session of Parliament amid Corona pandemic is essential. It's a new year and a new decade and we're also entering into the 75th year of independence. Today all MPs are present here with message & trust that however tough be the challenge neither we nor India will stop," said President Ram Nath Kovind. "In this fight against the pandemic, we lost many citizens. Former President Pranab Mukherjee passed away in this Corona period. Six MPs left us untimely due to COVID. I pay my tribute to all of them," he added. "It is a matter of pride that India is running the biggest vaccination program in the world. Both vaccines of this program are made in India. In this crisis India shouldered its responsibility towards mankind & provided lakhs of doses of vaccines to several nations," President said. The most important items on the agenda in the session are the passage of the Budget and related documents — the Economic Survey for 2021-22 on Friday, The Union Budget on Monday, and the report of the Finance Commission. (With inputs from agencies)

No matter how big the challenge is, India will not stop, says President Kovind

Ahead of the budget session of Parliament Prime Minister Narendra Modi has said that this decade is very important for the bright future of India.

"Today commences the first Session of this decade. This decade is very important for the bright future of India. A golden opportunity has come before the nation to fulfil the dreams seen by the freedom fighters," said Prime Minister Narendra Modi.

"Confident that MPs will not shy away from contributing to make full use of Parliament for fulfilling people's aspirations," said PM Modi.

"Keeping in mind this decade, there should be discussions, presentation of different views this session," PM Modi added.

The budget session of Parliament began today with an address by President Ram Nath Kovind and will be followed by the presentation of the Economic Survey.

The Union Budget will be presented by Finance minister Nirmala Sitharaman on February 1. Both the houses will also debate on the motion of thanks to the President's address after the budget presentation.

(With inputs from agencies)

Ahead of the budget session of Parliament Prime Minister Narendra Modi has said that this decade is very important for the bright future of India. "Today commences the first Session of this decade.

Ahead of the budget session of Parliament Prime Minister Narendra Modi has said that this decade is very important for the bright future of India. "Today commences the first Session of this decade. This decade is very important for the bright future of India. A golden opportunity has come before the nation to fulfil the dreams seen by the freedom fighters," said Prime Minister Narendra Modi. "Confident that MPs will not shy away from contributing to make full use of Parliament for fulfilling people's aspirations," said PM Modi. "Keeping in mind this decade, there should be discussions, presentation of different views this session," PM Modi added. The budget session of Parliament began today with an address by President Ram Nath Kovind and will be followed by the presentation of the Economic Survey. The Union Budget will be presented by Finance minister Nirmala Sitharaman on February 1. Both the houses will also debate on the motion of thanks to the President's address after the budget presentation. (With inputs from agencies)

Time to fulfill dreams of freedom fighters, says PM Modi ahead of the Budget session

India is likely to predict economic growth of 11% in the fiscal year beginning April 1 in its annual economic survey later on Friday, a source said, betting on a sharp recovery from the pandemic-induced slump this year.

The Indian economy, which the International Monetary Fund singled out as a global bright spot only a few years ago, is set to contract 7.7% in the current fiscal year to March 31, the deepest contraction in four decades, the economic survey is expected to say.

But the government predicts the rollout of vaccines against COVID-19, which has killed 153,847 Indians, will re-energise Asia's third-largest economy with 11% growth next year, said the source, who is familiar with the matter. That would mark the strongest growth since India liberalised its economy in 1991.

The survey is set to forecast nominal GDP, which includes inflation, will rise 15.4%, the highest since India's independence in 1947, said the source, who asked not to be identified. High nominal GDP points towards higher tax collections.

The survey's projections form the basis for key figures in the budget, due to be delivered on Monday by Finance Minister Nirmala Sitharaman. However, she may have to make some tough choices to keep in check the government's ballooning debt while presenting a spending plan able to lift the economy.

The source said the government expected a "V-shaped" economic rebound on the back of its vaccination push and a recovery in demand.

India has started inoculating millions of people with two vaccines -- Serum Institute of India's COVISHIELD, licensed from Oxford University and AstraZeneca, and COVAXIN, developed domestically by Bharat Biotech and the Indian Council of Medical Research.

India is likely to predict economic growth of 11% in the fiscal year beginning April 1 in its annual economic survey later on Friday, a source said, betting on a sharp recovery from the pandemic-induced slump this year.

India is likely to predict economic growth of 11% in the fiscal year beginning April 1 in its annual economic survey later on Friday, a source said, betting on a sharp recovery from the pandemic-induced slump this year. The Indian economy, which the International Monetary Fund singled out as a global bright spot only a few years ago, is set to contract 7.7% in the current fiscal year to March 31, the deepest contraction in four decades, the economic survey is expected to say. But the government predicts the rollout of vaccines against COVID-19, which has killed 153,847 Indians, will re-energise Asia's third-largest economy with 11% growth next year, said the source, who is familiar with the matter. That would mark the strongest growth since India liberalised its economy in 1991. The survey is set to forecast nominal GDP, which includes inflation, will rise 15.4%, the highest since India's independence in 1947, said the source, who asked not to be identified. High nominal GDP points towards higher tax collections. The survey's projections form the basis for key figures in the budget, due to be delivered on Monday by Finance Minister Nirmala Sitharaman. However, she may have to make some tough choices to keep in check the government's ballooning debt while presenting a spending plan able to lift the economy. The source said the government expected a "V-shaped" economic rebound on the back of its vaccination push and a recovery in demand. India has started inoculating millions of people with two vaccines -- Serum Institute of India's COVISHIELD, licensed from Oxford University and AstraZeneca, and COVAXIN, developed domestically by Bharat Biotech and the Indian Council of Medical Research.

India's annual economic survey likely to predict 11% economic growth for 2021-22

Finance Minister Nirmala Sitharaman has tabled the Economic Survey of India 2021&nbsp;in the parliament, ahead of the Union Budget on Monday.

Sitharaman tabled the Survey after President Ram Nath Kovind's customary address at the start of the Budget Session 2021.&nbsp;

The annual document acts as a platform to pitch larger economic ideas and concepts which the government may or may not act upon. 
 
The Economic Survey 2020-21, authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.

The economy, which was battered by the coronavirus lockdown, is expected to see a strong recovery in the 2021-22 fiscal year.

The gross domestic product (GDP) contracted by a record 23.9 per cent in April-June and by 7.5 per cent in the second quarter.

For the full fiscal, the survey projected a contraction of 7.7 per cent and V-shaped recovery in the next.

GDP growth is seen expanding by 11 per cent in 2021-22 fiscal (April 2021 to March 2022).&nbsp;

The session had an acrimonious start with as many as 19 political parties, including the Congress Party, skipping the President's address, in solidarity with the farmers agitating against the three contentious farm laws.&nbsp;

Here are the key highlights so far:&nbsp;

<ul>
	<li>India sees FY22 GDP growth at 11%&nbsp;</li>
	<li>Combined fiscal deficit to exceed target in FY21&nbsp;</li>
	<li>Growth recovery to be driven by government consumption</li>
	<li>Agriculture has remained the silver lining.</li>
	<li>Contact based services, manufacturing, construction hit hardest by the pandemic.</li>
	<li>Government consumption and net exports have cushioned the growth from diving further down.</li>
	<li>A V-shaped economic recovery supported by mega vaccination drive.</li>
	<li>&nbsp;Current account surplus of 2% of GDP likely in FY21.</li>
	<li>&nbsp;In two years India could be the fastest growing economy as per IMF.</li>
	<li>&nbsp;CAD estimated at 2% in FY21; that is the first in the 17 years.</li>
</ul>

(With inputs from agencies)

Finance Minister Nirmala Sitharaman has tabled the Economic Survey of India 2021 in the parliament, ahead of the Union Budget on Monday. Sitharaman tabled the Survey after President Ram Nath Kovind's customary address at the start of the Budget Session 2021.

Finance Minister Nirmala Sitharaman has tabled the Economic Survey of India 2021 in the parliament, ahead of the Union Budget on Monday. Sitharaman tabled the Survey after President Ram Nath Kovind's customary address at the start of the Budget Session 2021. The annual document acts as a platform to pitch larger economic ideas and concepts which the government may or may not act upon. The Economic Survey 2020-21, authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth. The economy, which was battered by the coronavirus lockdown, is expected to see a strong recovery in the 2021-22 fiscal year. The gross domestic product (GDP) contracted by a record 23.9 per cent in April-June and by 7.5 per cent in the second quarter. For the full fiscal, the survey projected a contraction of 7.7 per cent and V-shaped recovery in the next. GDP growth is seen expanding by 11 per cent in 2021-22 fiscal (April 2021 to March 2022). The session had an acrimonious start with as many as 19 political parties, including the Congress Party, skipping the President's address, in solidarity with the farmers agitating against the three contentious farm laws. Here are the key highlights so far: India sees FY22 GDP growth at 11% Combined fiscal deficit to exceed target in FY21 Growth recovery to be driven by government consumption Agriculture has remained the silver lining. Contact based services, manufacturing, construction hit hardest by the pandemic. Government consumption and net exports have cushioned the growth from diving further down. A V-shaped economic recovery supported by mega vaccination drive. Current account surplus of 2% of GDP likely in FY21. In two years India could be the fastest growing economy as per IMF. CAD estimated at 2% in FY21; that is the first in the 17 years. (With inputs from agencies)

Economic Survey 2021: GDP growth seen rebounding at 11% in 2021-22

India has transformed the short-term trade-off between lives and livelihoods into a win-win in the medium to long-term that saves both lives and livelihoods, the annual economic survey authored by Chief Economic Advisor Krishnamurthy Subramanian said, in its first chapter.&nbsp;

“By estimating the natural number of cases and deaths expected across countries based on their population, population density, demographics, tests conducted, and the health infrastructure, we compare these estimates with actual numbers to show that India restricted the Covid-19 spread by 37 lakh cases and saved more than 1 lakh lives.”

The survey found a correlation between the stringency of the lockdown and it the number of Covid-19 cases and resultant deaths. It also found a correlation between the lockdown’s stringency and the country’s “V-shaped” recovery. “India thus benefited from successfully pushing the peak of the pandemic curve to September 2020 through the lockdown."

Here are the key highlights so far:&nbsp;

<ol>
	<li>India sees FY22 GDP growth at 11%&nbsp;</li>
	<li>Combined fiscal deficit to exceed target in FY21&nbsp;</li>
	<li>Growth recovery to be driven by government consumption</li>
	<li>Agriculture has remained the silver lining.</li>
	<li>Contact based services, manufacturing, construction hit hardest by the pandemic.</li>
	<li>Government consumption and net exports have cushioned the growth from diving further down.</li>
	<li>A V-shaped economic recovery supported by mega vaccination drive.</li>
	<li>Current account surplus of 2% of GDP likely in FY21.</li>
	<li>In two years India could be the fastest growing economy as per IMF.</li>
	<li>CAD estimated at 2% in FY21; that is the first in the 17 years.</li>
</ol>

(With inputs from agencies)

India has transformed the short-term trade-off between lives and livelihoods into a win-win in the medium to long-term that saves both lives and livelihoods, the annual economic survey authored by Chief Economic Advisor Krishnamurthy Subramanian said, in its first chapter.

India has transformed the short-term trade-off between lives and livelihoods into a win-win in the medium to long-term that saves both lives and livelihoods, the annual economic survey authored by Chief Economic Advisor Krishnamurthy Subramanian said, in its first chapter. “By estimating the natural number of cases and deaths expected across countries based on their population, population density, demographics, tests conducted, and the health infrastructure, we compare these estimates with actual numbers to show that India restricted the Covid-19 spread by 37 lakh cases and saved more than 1 lakh lives.” The survey found a correlation between the stringency of the lockdown and it the number of Covid-19 cases and resultant deaths. It also found a correlation between the lockdown’s stringency and the country’s “V-shaped” recovery. “India thus benefited from successfully pushing the peak of the pandemic curve to September 2020 through the lockdown." Here are the key highlights so far: India sees FY22 GDP growth at 11% Combined fiscal deficit to exceed target in FY21 Growth recovery to be driven by government consumption Agriculture has remained the silver lining. Contact based services, manufacturing, construction hit hardest by the pandemic. Government consumption and net exports have cushioned the growth from diving further down. A V-shaped economic recovery supported by mega vaccination drive. Current account surplus of 2% of GDP likely in FY21. In two years India could be the fastest growing economy as per IMF. CAD estimated at 2% in FY21; that is the first in the 17 years. (With inputs from agencies)

Economic Survey 2021: India's timely lockdown strategy saved more than 1 lakh lives

President Ram Nath Kovind on Friday condemned the violence on Republic Day during the farmers' tractor rally. Addressing the joint sitting of Parliament at the start of the Budget Session, the President said that the violence was unfortunate and he was saddened by the insult to National flag and the Republic Day.

"The national flag and a holy day like Republic Day were insulted in the past few days. The Constitution that provides us Freedom of Expression is the same Constitution that teaches us that law &amp; rules have to be followed seriously," the President stated.

He also added that the govt is working to clear misgivings about the new farm laws. The President also listed a number of govt welfare programmes for the farmers. 
 
Hailing the government for PM-Kisan Samman Nidhi, President Kovind said, "Small and marginal farmers are also a priority for my government. To support such farmers in their small expenses, around Rs 1,13,000 crores have been transferred directly to their accounts." 
 
"My Govt would like to clarify that the rights and facilities that were available before the formation of the three Farm Laws have not been cut short, in fact with these new agricultural reforms the Govt has provided new facilities &amp; rights to farmers," he said. 
 
The most important items on the agenda in the session are the passage of the Budget and related documents — the Economic Survey for 2021-22 on Friday, The Union Budget on Monday, and the report of the Finance Commission.

(With inputs from agencies)

President Ram Nath Kovind on Friday condemned the violence on Republic Day during the farmers' tractor rally. Addressing the joint sitting of Parliament at the start of the Budget Session, the President said that the violence was unfortunate and he was saddened by the insult to National flag and the Republic Day.

President Ram Nath Kovind on Friday condemned the violence on Republic Day during the farmers' tractor rally. Addressing the joint sitting of Parliament at the start of the Budget Session, the President said that the violence was unfortunate and he was saddened by the insult to National flag and the Republic Day. "The national flag and a holy day like Republic Day were insulted in the past few days. The Constitution that provides us Freedom of Expression is the same Constitution that teaches us that law & rules have to be followed seriously," the President stated. He also added that the govt is working to clear misgivings about the new farm laws. The President also listed a number of govt welfare programmes for the farmers. Hailing the government for PM-Kisan Samman Nidhi, President Kovind said, "Small and marginal farmers are also a priority for my government. To support such farmers in their small expenses, around Rs 1,13,000 crores have been transferred directly to their accounts." "My Govt would like to clarify that the rights and facilities that were available before the formation of the three Farm Laws have not been cut short, in fact with these new agricultural reforms the Govt has provided new facilities & rights to farmers," he said. The most important items on the agenda in the session are the passage of the Budget and related documents — the Economic Survey for 2021-22 on Friday, The Union Budget on Monday, and the report of the Finance Commission. (With inputs from agencies)

President condemns violence on Republic Day, says protests at Red Fort unfortunate

With just a few days to go for India's <a href="https://www.wionews.com/topics/budget">Union Budget 2021</a>,&nbsp;Finance Minister Nirmala Sitharaman is expected to unveil plans to boost economic growth.

In Union Budget 2021, corporates and industry lobby groups expect the government to announce greater spending on healthcare and infrastructure, as well as tax breaks for the automotive, manufacturing and tourism industries, reeling from the coronavirus crisis.

Also read|&nbsp;<a href="https://www.wionews.com/india-news/union-budget-2021-government-may-raise-duty-on-finished-goods-and-imports-358740" hreflang="en">Union Budget 2021: Government may raise duty on finished goods and imports</a>

Here's what&nbsp;corporates, economists and market experts expect from&nbsp;2021/2022 federal budget on February&nbsp;1:

Healthcare and pharmaceuticals

The drugs industry is hoping for incentives to spur more investment in research and development (R&amp;D), via bigger tax deductions on R&amp;D spending, said Sudarshan Jain, secretary-general of the Indian Pharmaceutical Alliance.

Kiran Mazumdar Shaw, chief of Biocon Ltd, hopes the government will raise healthcare spending to 2.5 per cent&nbsp;of gross domestic product by fiscal 2025 from about 1 per cent now.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/union-budget-2021-government-needs-credible-sources-for-additional-revenue-to-boost-economy-356849" hreflang="en">Union Budget 2021: Government needs credible sources for additional revenue to boost economy</a>

Real estate and infrastructure

The real estate and construction sector, a bellwether for the Indian economy, is hoping for tax reliefs for home buyers and regulations curbing a rise in construction costs.

Automobile industry

The automobile industry hopes for a roadmap for a recently announced production-linked incentive scheme and policy on scrapping of commercial vehicles.

Toyota Kirloskar, the Indian unit of Toyota Motor Corp, said it was looking forward to support measures for the manufacture of hybrid electric vehicles and parts.

Aviation

The aviation industry is looking for lower taxes on aviation turbine fuel and levies such as airport charges, parking and landing and navigation charges, said Moody's India unit, ICRA.

Tourism and hospitality

The National Restaurant Association of India is hoping for more liquidity support, with low collateral, and a minimum moratorium of six months.

Personal tax breaks for domestic travel would also help, said Deep Kalra, founder and top official of online booking website MakeMyTrip Ltd.

Retail

Brick-and-mortar retail firms seek a national retail policy, to help combat the growing popularity of online sellers.

"Formulation of national retail policy, removing the distinction between e-commerce and physical retail under one policy has been spoken about and we hope that this happens in FY 21," said Preet Dhupar, the chief financial officer of Ikea India.

Banking

The coronavirus brought a slump in lending by banks, and despite signs the economy is improving, the central bank has warned that the industry could see bad loans nearly double.

Some analysts expect the setting up of a so-called "bad bank", which the government will use to buy bad assets from state-owned banks. There are also expectations for moves to recapitalise state-owned banks.

Public sector banks may need a further 430 billion rupees ($5.9 billion) as capital requirement in the next financial year, ICRA said.

&nbsp;

With just a few days to go for India's Union Budget 2021, Finance Minister Nirmala Sitharaman is expected to unveil plans to boost economic growth. In Union Budget 2021, corporates and industry lobby groups expect the government to announce greater spending on healthcare and infrastructure, as well as tax breaks for the automotive, manufacturing and tourism industries, reeling from the coronavirus crisis.

With just a few days to go for India's Union Budget 2021, Finance Minister Nirmala Sitharaman is expected to unveil plans to boost economic growth. In Union Budget 2021, corporates and industry lobby groups expect the government to announce greater spending on healthcare and infrastructure, as well as tax breaks for the automotive, manufacturing and tourism industries, reeling from the coronavirus crisis. Also read| Union Budget 2021: Government may raise duty on finished goods and imports Here's what corporates, economists and market experts expect from 2021/2022 federal budget on February 1: Healthcare and pharmaceuticals The drugs industry is hoping for incentives to spur more investment in research and development (R&D), via bigger tax deductions on R&D spending, said Sudarshan Jain, secretary-general of the Indian Pharmaceutical Alliance. Kiran Mazumdar Shaw, chief of Biocon Ltd, hopes the government will raise healthcare spending to 2.5 per cent of gross domestic product by fiscal 2025 from about 1 per cent now. Also read: Union Budget 2021: Government needs credible sources for additional revenue to boost economy Real estate and infrastructure The real estate and construction sector, a bellwether for the Indian economy, is hoping for tax reliefs for home buyers and regulations curbing a rise in construction costs. Automobile industry The automobile industry hopes for a roadmap for a recently announced production-linked incentive scheme and policy on scrapping of commercial vehicles. Toyota Kirloskar, the Indian unit of Toyota Motor Corp, said it was looking forward to support measures for the manufacture of hybrid electric vehicles and parts. Aviation The aviation industry is looking for lower taxes on aviation turbine fuel and levies such as airport charges, parking and landing and navigation charges, said Moody's India unit, ICRA. Tourism and hospitality The National Restaurant Association of India is hoping for more liquidity support, with low collateral, and a minimum moratorium of six months. Personal tax breaks for domestic travel would also help, said Deep Kalra, founder and top official of online booking website MakeMyTrip Ltd. Retail Brick-and-mortar retail firms seek a national retail policy, to help combat the growing popularity of online sellers. "Formulation of national retail policy, removing the distinction between e-commerce and physical retail under one policy has been spoken about and we hope that this happens in FY 21," said Preet Dhupar, the chief financial officer of Ikea India. Banking The coronavirus brought a slump in lending by banks, and despite signs the economy is improving, the central bank has warned that the industry could see bad loans nearly double. Some analysts expect the setting up of a so-called "bad bank", which the government will use to buy bad assets from state-owned banks. There are also expectations for moves to recapitalise state-owned banks. Public sector banks may need a further 430 billion rupees ($5.9 billion) as capital requirement in the next financial year, ICRA said.

Union Budget 2021: What Indian corporates, economists and market experts expect