Time to Break Traditions and Start New: India in 2022
January 30, 2022
Amidst the COVID scare, the traditional halwa-making ceremony was called off this year. The budget is expected to be presented on the floor of the parliament via Tablet (electronically). While some experts don’t have any hope for this year’s budget, others feel bullish. Currently, the rate of inflation is elevated, and a high fiscal deficit could mean more gap in the current account deficit, which will in a way impact the rupee and add concerns. Rising interest rates could dampen the hopes to elevate the construction and infrastructure segment in 2022. While the industry is talking about new announcements in infrastructure, digitisation, and agriculture, we feel that a considerable allocation for the following three upcoming sectors is also justified:
The healthcare industry expects respite, new initiatives would be welcome
The interim COVID care package will be the key highlight under the healthcare budget allocations. Fresh funds for R&D, vaccines, APIs sector, support to newly created bodies such as The National Digital Health Mission (NDHM), and Production Incentive Programs (PIPs) for domestic manufacture of essential Drug Intermediaries (DIs) is expected to boost morale. Considering the inflation, announcements on new med-device parks or Med-Tech parks may be few or none. ‘Atmanirbhar Bharat’ will remain the backbone of healthcare funding this year too, but new initiatives will be much in demand.
The banking industry is uncertain; perhaps some structure and direction would be best
Investors hope that STT is reduced to gain the trust of investors this year. Many accounts opened under the PM’s Jan Dhan Yojna are non-operational. Perhaps some special focus on digital banking, reconsidering the GST and TDS in few areas could boost the public sentiments that stand badly hit due to the pandemic.
Indian banking system still carries the baggage of the British Raj, perhaps an online KYC (electronic and video) wont harm the public who prefer to work from home these days or, senior citizens who must restrict their mobility amidst the pandemic.
ESG regulations must be mandatory for all; policies alone won’t make a difference
Last year, India had introduced new environment, social, and governance (ESG) reporting requirements for the top 1,000 listed companies in the country by market capitalisation. From this financial year, Business Responsibility and Sustainability Report (BRSR) reporting has been made mandatory. Currently, India has ~7,400 listed companies as per NSE & BSE and it might take a while before mid-small players start implementing. Sustainability is a major area of concern and SEBI, and state-level bodies (under PPP) must be created and empowered to monitor the measures. A phase wise implementation plan won’t harm. Compared to the US and Western Europe, India is still lagging in this sector and the policy makers must re-structure keeping in mind the best practices of the industry.
Finally, the market should not keep too many hopes from this budget, considering limitations like inflation, restricted growth, and other undisclosed reasons. Yes, it is true that this budget will see few key initiatives, but the impact can only be measured once they are implemented. As part of the new initiative, it would be a welcome change to see India’s healthcare spending to rise from 1.2 per cent of GDP to 1.8-2 per cent this year. Our union budgets have remained conservative towards healthcare; however, there is no harm in initiating new beginnings. Time to break traditions?

Dr. Sidhartha Dutta is a business technologist with 20+ years of experience in International Business Development, Strategic Account Management, Healthcare & Pharmaceutical Project Management, Proposal writing, Strategic Relationship Development, Opportunity Identification, Lead Development, Consulting, Large Deal Making and Marketing. As a Medical Microbiologist by degree and MBA by skill set, he is very passionate about collaborating with clients and expanding their aura, visibility and footprints in new and existing markets.
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