RBI Issues Circular On Levying Unfair Interest Charges On Customers

The government and RBI have been monitoring the impact of the pandemic on the economy and have taken several steps to support the economy in a timely manner. We feel the 2021 Union Budget will be important to revive growth.

The following areas are likely to get a growth push:

— Ramping up infrastructure development as states which also have a significant share in the infrastructure activity are facing high fiscal deficits and liquidity issues. This has a multiplier effect on the economy and fosters broad based growth, and will remain a top priority to ensure quicker economic turnaround and achieve more balanced and sustainable economic growth

— Favourable manufacturing and digital ecosystem to encourage domestic businesses & spur private spending and also attract foreign companies to set up base in India.

— Modern agri infrastructure and farm technologies.

— Healthcare

— Forward and backward linkages with key MSME industries. The government will need to restrict the deteriorating credit environment and incentivise exports.

— Growth-oriented sectors like steel, cement, coal, and power

To ensure fiscal prudence, faster execution of the disinvestment programme and monetisation of assets can help increase cashflows to the government.