The Union Budget coming in the wake of COVID 19 has been given thumbs up by the industry. There is a huge boost for healthcare, infrastructure, start-ups, Education Sector and Insurance. This will in turn increase spends and also bring in a positive consumer sentiment.
The FM laid emphasis on Healthcare. This sector has been neglected, but this pandemic showed us as to how India stood up to the challenge and manufactured indigenous PPE kits not only for India but also for exports. The Healthcare industry has been allocated Rs. 2, 23,846 crores for strengthening the holistic care approach through preventive, curative care and wellbeing.
The government’s decision to strengthen school education with the implementation of the National Education Policy across 15,000 schools despite the hurdles owing to the COVID-19 pandemic shows clear intent.
Mrs. Neerja Birla, Founder & Chairperson, Mpower
We appreciate the measures proposed by Honourable Finance Minister NirmalaSitharaman in the Union Budget to take a holistic approach to healthcare in the Union Budget 2021, by focusing on preventive and curative healthcare in addition to wellbeing. While the allocation to healthcare in this budget has increased substantially, we believe mental healthcare also deserved a special mention. As aptly mentioned by the FM in the Budget speech, last year was an undeniably tough year for our physical and mental well-being. COVID – 19 has brought India’s mental health crisis to the fore. Unfortunately, the rising number of cases of mental illness has not been accompanied by a parallel rise in the budget allocation for mental healthcare. Amidst the challenging and competitive era that we are living in, it is extremely crucial to acknowledge the importance of mental healthcare and invest in educating citizens to make them aware of mental health services available in India while taking measures to alleviate the stigma associated with it.
Ameera Shah, Promoter & Managing Director, Metropolis Healthcare Ltd
An increase of 137% YoY in outlay in the health and wellbeing sector showcases the government’s aim to create a Swasth Bharat, Swatch Bharat. It is also heartening to see a holistic view on health; taking into account, clean water, hygiene and sanitization, vaccination, nutrition, and pollution.
The launch of PM AtmanirbharSwasth Bharat Yojna and the much-needed push to set up primary, secondary and tertiary healthcare is most welcome and we hope the government partners with private healthcare to hasten this process and strengthen health services across the country. The plans to add critical care units, hospitals, 15 health emergency centers, four new national Institutes of Virology and connecting public testing labs is a step in the right direction. The private healthcare sector has shown immense commitment through the pandemic to save the lives of citizens and an impetus could have motivated the sector further.
Investment of INR 35,000 crore funds for the COVID-19 vaccine is a positive move in the country’s fight against the pandemic; however, testing of citizens will remain crucial in the coming months as the economy reopens to its fullest extent. The proposed National Nursing and Midwifery Commission Bill may enable the industry to thrive and realize its full potential by regulating the service standards and professionalizing the nursing and midwifery services.
Dr.Pradeep V. Mahajan – CMD, StemRx BioScience Solutions Pvt. Ltd.
This year’s budget by the Hon’ble Finance Minister is indeed very positive, and committed to the healthcare sector which needed a much needed deliberate boost post unprecedented virus outbreak last year. The announcement of a centrally funded scheme – Aatmanirbhar Health Yojana – with an outlay of Rs 65,000 crore over six years in addition to the National Health Mission is a welcome step towards strengthening primary, secondary and tertiary healthcare in the country. It is appreciable that the government has been very thoughtful regarding healthcare thereby focussing on curative and preventive health and wellbeing. The allocation this year is a whopping over 130% rise from the budget last year. The proposals would make quality healthcare accessible and affordable, besides standardizing, enhancing and elevating healthcare infrastructure across the country
Saurabh Kochhar, Founder and CEO, Meddo
Health sector has received due importance and we are happy that we are in a progressive and promising space. COVID 19 challenged the health sector across the globe but it’s time for us to see the silver lining. The fact that health is regarded as the foremost pillar of the Union Budget 2021 speaks volumes about the Government’s focus on the sector. 137% increase in healthcare expenditure is the need of the hour. In a year where overall GDP is contracting, this should take Healthcare spend to over 3% of GDP, up from 1.3%. What is now imperative is deploying allocated funds effectively to further primary health and digitisation. Budget allocation towards vaccines is noteworthy and a step in the right direction. With increased capital infusion/liquidity, it would be prudent to incentivise private players who can become the backbone of healthcare delivery system in the nation and partner the vision of the policymakers and support implementation effectively. Last but not the least, increased FDI in Insurance can be utilised by the health sector to increase penetration and offer the much-needed security and cover for the masses. All in all, budget 2021 is inclusive and promising for the healthcare sector.
Vishal Bali, Executive Chairman, Asia Healthcare Holding.
Healthy India is core to India’s economic growth reflects in the 137% increase in outlay for health at Rs 2,23,846 cr in budget 2021. The focus on healthcare with AtmanirbharSwasth Bharat Yojana with an outlay of Rs 64, 180 CR over 6 yrs shows that healthcare capacity building is now a key priority for the Govt. The 35000 crearmarked for COVID 19 vaccination drive will create the safety net for the country. The overall capital expenditure increase of 26% should drive infrastructure acceleration, the much-needed GDP growth driver. Insurance sector which is an important pillar for any country should see an exponential growth with enhancement of FDI limit to 74% from 49%. Overall a forward-looking budget to drive the 11% GDP growth for India in FY22 as pegged in the Economic survey 2020.
Rajat Jadhav, Co-founder, Bold Care
The budget has rightfully taken into account the health of the scathed startup ecosystem in India and has simultaneously acknowledged their potential to change the face of the Indian economy.
The extension of the tax holiday by a year is a welcome move that will provide relief and have a positive effect on the start-up sector. The increased focus on capital infusion and ‘Make in India’ initiatives will encourage start-ups to innovate and expand their folds in a non-strenuous and nurturing environment. Paid-up capital for enterprises with a turnover of up to Rs. 2.5 crores will inspire newer investors in the start-up space while the focus on FDI will help existing players to transform themselves into global case studies. Also, the increased impetus given to skill development and R&D will enhance the investment climate and spur growth leading the path for start up’s of today to emerge as MNCs of tomorrow. Additionally, the technology-driven measures along with simplification of the GST structure will add a new dimension to the long term development of this sector. With a connectivity focussed approach and a digital transaction inclined culture, the union budget has made it easier for start-ups to deepen their hold over the geographies of the country.
Also, ease of business will help start-ups manoeuvre the marketplace and flourish in a competitive economy.
Dinesh Chauhan, CEO, CORE Diagnostics
We hail the Government’s continued commitment towards healthcare & well-being with the new AtmaNirbharSwasthyaYojana, as an addition to the National Health Mission, with outlay of Rs 64,180 cr. This will provide the necessary impetus to the development of primary, secondary and tertiary healthcare and further support the nation to come out of the distress caused by COVID-19. Since it will also be used towards creating modern institutions & labs to cater for detection and cure of new and emerging diseases – the diagnostics industry will have a major role to play and work towards making healthcare more accessible and sustainable. This is a great move towards making healthcare services more democratised and we are committed towards bringing a significant change in the diagnostics space with early diagnosis and outcome-based line of treatment for patients.
Piyush Kothari – Founder & CRO, Healthism.
Budget 2021 is very positive for Health care sector. Considering what we have gone through last year because of Covid19, I believe increasing Health Infrastructure is very positive step to provide timely and quality health care to the people at large. Focus on preventive, curative health, critical care units, hospital blocks and over all well-being was the key focus in the budget. Another big step which is taken to increase the FDI limits in Insurance sector from 49% to 74% which is the Big boost to the Health sector.
Bharat Goyal, Founder, Director Bhartiyam International School
The budget that has been announced today was very positive in terms of the long-term vision of the Govt. It is clear that the Govt has taken all the major policy decisions which will help to bring the economy back on track and the most important and very happy step was the increase in capital expenditure which will result in more money that will flow into the markets. Other than that, I would say that the education sector needed a little more focus from the Govt side there has been discussion about the higher education council but from School’s perspective other than making 15,000 Model Schools and 1,000 new Sainik Schools have not been much. We are expecting a little more focus towards Govt’s role in various aspects of School Education.
Other than that this budget is more focused towards giving some relaxation to the Sr Citizens, Farmers, and also some organisations but for middle class and lower middle class there’s not much that has come directly from the budget as of now.
Sumeet Jain, Co-founder, Yocket, the largest platform for students planning to study abroad.
Nothing concrete has been mentioned about higher education in the budget. Only setting up of Higher Education Commission via legislation was mentioned. But no mention about the budget allocation or how the implementation of the NEP for higher education.
It will be interesting to see the details of the new law to set up the Higher Education Commission. With such a huge population, education is of prime importance if we don’t want to see joblessness grow in the coming times.
However, a 50,000 Cr. for research initiatives is a welcome move. Research needs a big boost and this might be a good start. If we need to strengthen our education system, research will be extremely important.
Abhishek Gupta, Founder and CEO, Hex N Bit ( Anedtech platform provides one-stop solutions in Industry-Connect Skill Development Courses)
We welcome the budget for 2021. With an increase in the MSME budget of Rs 15,700 crore, which is more than double of the previous year, can help the startups as well as MSME but as seen there are approximately 50k startups in India, so a big boost was expected in investment
In the National apprenticeship training scheme–the Indian government has now allocated Rs. 3,000 Cr. for National apprenticeship which will create a Skilled & talented workforce with the bilateral partnership with United Arab Emirates to provide training, certification, assessments etc. India will collaborate with Japan in order to adopt cutting edge technology, technique & vocational programs for scaling up the technology in India to newer heights
The government of India has proposed the budget of Rs 50K crore over 5 years for innovation & R&D. There will be an expectation from the Government to spend setting up the Innovation lab focusing on the technologies such as Artificial Intelligence, Machine learning, Data analytics, etc. which can showcase the solution to most of the problem statement in most of the field including medical, agriculture, defence or any natural disaster
As proposed by FM, capital expenditure is now increased to Rs. 5.54 Lakh crore from Rs. 4.39 Lakh crore, hopefully, the state ¢er will invest a considerable amount for digital connectivity, high-speed internet at an affordable rate as well as learning assets in a remote location so that aspirants can learn new-age technology to build New India. Even after the economic crisis due to Covid-19, an increase in the capital expenditure with such a high number must be appreciated.
Boost to start-up hub in India, as proposed by FM, there will be a plan to enforce incentives incorporation of one-person companies without any restriction on paid-up capital. Can set up this company in 180 days.
Rajeev Tiwari, Founder, STEMROBO Technologies, STEM Education company for K-12 students.
In the Union Budget, to promote Startup – announcement of Incorporation of One Person Company, Easing of Definition of Small Company from the point of view Corporate Law Compliance are a welcome step.
Innovation & R&D will get a boost by allocating National Regional Foundation (NRF) a sum of 50000 Cr and boost Innovation Culture in startups.
Announcement of Non-Auditing of Income Tax till 10 Cr. and allowing Start-ups to claim IT Exemption and Capital Gains for 1 more Year will ease the Compliance Burden of Start-ups and help in raising more funds.
NEP (New Education Policy) has been given a thrust in the budget. The plan to set up 15000 Pilot Schools as a showcase for NEP, which can be exemplary for other schools, is a welcome step and will lead to promoting NEP in the School Ecosystem. Tribal School-Eklavya Schools with newer allocation – in tribal areas will spur further development of education in tribal areas. Allocation of the National Apprenticeship Scheme for 3000 Cr and increasing the contours of it will benefit companies.
Innovation & R&D will get a boost by allocating National Regional Foundation (NRF) a sum of 50000 Cr for the next 6 Years. Research and Innovation Ecosystem to get a substantial growth.
Anoop Gautam, CEO & Co-founder, Tinker Coders ( An online coding platform for K-12 students)
The unprecedented contraction put forth by the Covid-19 crisis has changed the economic aspects, entirety. Many changes were incorporated keeping in mind the challenges being faced by people at the grass-roots level. The startup industry, Edtech space too witnessed contractions and flattening of the curve in terms of growth and expansion. However, the recovery and normalcy rate has improved to a larger extent keeping in mind the implications of the pandemic.
Union Budget 2021 has focused on strengthening 15000 schools with all the components of NEP as a pilot project. Also, skill enrichment programs will be initiated in collaboration with the United Arab Emirates which will bring new opportunities for the youth of our country. FM ShrimatiNirmalaSitharaman also mentioned to initialize a collaborative training program with Japan, which will be launched for more countries as well in the upcoming future. This year’s Union Budget has focused primarily on innovation and research development, therefore it has become even important for the students in the K-12 segment to enhance their 21 st -Century skills in order to become skill-efficient in this tech-led generation. For startups, the government has proposed to reduce the margin money requirement from 25% to 15%. This will open a new door of opportunities for startups in upscaling their businesses. The government has also doubled the fund allocation for MSMEs, to a whopping 15,700 crores for FY22.
Rustom Kerawalla, Chairman, Ampersand Group
The government’s decision to strengthen school education with the implementation of the National Education Policy across 15,000 schools despite the hurdles owing to the COVID-19 pandemic shows clear intent. However, the rollout and implementation across all states should be done within a couple of years to bring parity for students to access education across the country. The participation of the private sector and NGOs in managing and operating schools will be an enabler in providing a modern and high-quality framework for education and boost the sector to engage with many more projects under the public-private partnership model.
Dr. Sunita Gandhi, Founder of GETI and GCPL
Following the schools shutting down, classroom education shifting to the online space, and introduction of NEP in 2020, there were a lot of expectations from this year’s budget. Announcement about opening 100 new Sainik schools in partnership with NGOs, private schools, and states are a welcoming move that will encourage the sector. Further, allocating Rs 50,000 crore over five years to the National Research Foundation (NRF) for Innovation and Research & Development will stimulate the sector in the medium to long term. Introduction of the Apprenticeship Act that will spur employment opportunities for student’s post-education apprenticeship. Overall the budget has made positive developments and is moving in the right direction. As per the NEP, The percentage of GDP was supposed to go up not reduce it.
This is not a good sign in the Budget. Education is not loosest point and setting back the education sector. As schools were shut during covid, Education Sector needed a bigger boost from the current Budget. It’s good that now that 15000 schools will be a part of NEP now. Also, SamagraShiksha was not explained properly as it’s a good initiative by the Govt.