Budget 2022 ushers in 'Amrit Kaal' with flourish

Good Morning,

As India commemorates the 75th year of independence with 'Azaadi ka Amrit Mahotsav', Finance Minister Nirmala Sitharaman dedicated Union Budget 2022 to the next 25 years — termed 'Amrit Kaal' by Prime Minister Narendra Modi. 

As envisioned in the Gati Shakti Master Plan, the focus of this Budget lay on four pillars of development — inclusive development, productivity enhancement, energy transition, and climate action. 

"This Budget seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years – from India at 75 to India at 100. It continues to build on the vision drawn in the Budget of 2021," FM Sitharaman said.

The Budget has given due emphasis to the burgeoning startup ecosystem of the country and supported venture capital in form of slashing the maximum surcharge on Long Term Capital Gains to 15 percent — bringing down the effective tax rate to 23.92 percent. The tax incentive for startups was extended by another year, while also proposing the creation of segment-focused funds.

Continuing with the digitisation push, the fintech sector got a massive boost in the form of 75 digital banking units that will be set up in 75 districts. The FM also proposed a Rs 1,500-crore scheme to develop, promote, and accelerate digital payments. She also extended the Emergency Credit Line Guarantee Scheme (ECLGS) to help micro, small, and medium enterprises (MSMEs) recover from the ongoing pandemic.

Budget 2022 also kept an eye on newer technologies, announcing that RBI will introduce digital rupee using blockchain and will tax the transfer of any virtual digital asset at 30 percent.

Touching all aspects of the Indian economy, Budget 2022 balanced urbanisation and infrastructure modernisation with the need for sustainability. By increasing FAME India's allocation by nearly four times, developing solar power and wind power grid, and introducing a battery swapping policy, the Budget looks to build a greener future.

Take a look at the complete highlights here.

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News & Updates

• Amid the rising demand for electric vehicle infrastructure, the government said it will bring a battery swapping policy to boost the use of EVs in India. 

• Acknowledging the impact of COVID-19 on education, the centre announced the establishment of a Digital University to cater to India’s education needs. The PM eVidya Scheme will be expanded from 12 channels to 200 channels to facilitate supplementary learning for all classes 1 to 12 in regional languages.

• Here’s what experts think about Finance Minister Nirmala Sitharaman proposing taxing income from the transfer of virtual digital assets (such as crypto and NFTs) at 30 percent, as well as directing the RBI to issue "a digital rupee using blockchain and other technologies".

Before you go, stay inspired with… 

“The Budget, presented by Finance Minister Nirmala Sitharaman, is progressive and growth-oriented. It will help in India’s progress towards its aspiration of a $5 trillion economy.”

— Ritesh Agarwal, Founder and Group CEO, OYO

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