Impact of Union Budget 2020 in the Indian Economy.

Introduction 

Union Budget of India also referred to as the Annual Financial Statement of the Republic of India, is submitted every year on the 1st working day of February. The duty of creating and providing it verbally in the parliament is the Finance Minister of India. Delivering the Union Budget is the duty of the Finance Minister of India, who is Nirmala Sitharaman. The Finance Minister coordinate with a team of people who help him/her in analyzing all the aspects of the country and accordingly decides a budget. This process can take over a month for a country like India as it has people with several communities ad classes. Satisfying the wants of everyone becomes difficult because of the high rate of population. So the budget might be successful planning for few but disastrous for others. Here I will explain to you the sectors that might get benefitted and industries that might get affected through this budget. 

Sectors getting benefitted

1. Information Technology - The infusion of ₹8,000 crores in the Information Technology industry can help develop it. This budget is sufficient for achieving the National Mission on Quantum Computing and Technology, which promises Internet connectivity to more than 1,00,000 Gram Panchayats. 
2. Infrastructure - Infrastructure is one of the essential aspects of developing a country. So concerning it, the Finance Ministers have improvised and infused many things.
   1. 1. The budget introduced in this sector will help in extending the gas grid by up to 11,000 km for boosting the gas stock.
      2. The new Power generation companies can now enjoy less amount of corporate tax, which is only 15%.
      3. Along with these developments, five smart cities and 100 new airports to be developed by 2025 under the UDAN scheme. 
3. Agriculture - Over half the population of India is engaged with the agricultural sector, so it is essential to look upon solving their issues.
   1. 1. The most harassing problem for them is the transportation of perishable goods. So for solving it, the budget suggests the setting of Kisan Rail through the PPP model.
      2. Along with its expansion of the PM KUSUM scheme for solar providing solar pumps to over 2 million farmers.
      3. For saving electricity and such resources, solar power is introduced. So a provision of giving a particular amount to those farmers transferring their activities to solar has been decided.
4. Renewable Energy - Resources are getting extinct due to an increase in daily usage. So it is essential to decrease it or commence practising an alternative way for it. Renewable energy is the only solution to this dilemma. So funds of ₹20,000 crores are infused in the renewable energy sector.
5. Finance - The Financial system of India will get relief with the help of the current budget.
   1. 1. The Indian Finance clearing system is a bit slow. According to reports, it takes more than a month to clear a business loan. But with the current proposed budget, which gets a single investment clearance window, can make it easy for the entrepreneurs. It will enable the entrepreneurs to clear their financial requirements in a few days.
      2. We deposit our money and valuable items in the bank lockers or bank deposits to keep it safe from theft. But it is possible for our valuables to getting destroyed in the bank too on any grounds such as robbery, fire break our or natural calamity. So for back-up, we insure the deposits. Earlier, the insurance was restricted to ₹5 lakhs only, but now it is increased to ₹5 lakhs.
      3. The tax which was paid by the companies for paying the dividend to the investors is waived off. Profits will have to be taxed based on the recipient’s income tax slab.
      4. Buying their own house is a dream of many people today, but due to financial instability, they get deprived of it. So, according to Prime Minister's promises and other factors, the additional ₹1.5 lakhs tax deduction on interest paid for housing loans is extended to March 2021.
      5. Due to a reduction in income tax rates, individual income taxpayers are now relived.
6. Travel and Tourism - For maintaining and developing the travel and tourism industry in India, the budget allows ₹2,500 crores. This will help in the growth of travel and tourism, and more revenue for India will be processed.

Sectors getting affected

1. As Mutual Fund is a kind income, tax is levied on it. Earlier because of a high rate of tax, investors expected a decline of proportion, but they experienced disappointment.
2. Footwear, wall fans, tableware/kitchenware, furniture, etc. of imported brands will now get even expensive because of an increase in customs duties. So it would be a setback for the customers willing to buy them.
3. A financial tremor will be experienced in the medical sector as the imported medical equipment is now liable for the health cess.
4. Tobacco products are now inclined to higher excise duty.

Conclusion

India is a country of 1.3 billion people, with around 2.6 billion views. Some are satisfied with a few ideas, but some have a different opinion. So it is nearly impossible to provide such a budget that will make everyone happy. This budget does have some good points, as well as some setbacks. It depends upon how we take this budget in the right way. We have to make plans that are legally and socially possible to live the same life that we used to live before.