Union Budget 2021-22 Boosts Post-Covid Economy with Innovation, Digital Growth Focus
The Union Budget 2021-22 has brought several significant changes to boost the post-Covid economy, with a strong focus on research, innovation, and digital growth. Key highlights include extensions to start-up benefits, new technology initiatives, and support for gig workers.
The Budget extends the capital gains exemption for investments in start-ups and the eligibility for claiming tax holidays until March 31, 2022. Additionally, the definition of small companies under the Companies Act, 2013, has been revised to increase thresholds for paid-up capital and turnover.
To strengthen research and development, the Budget allocates Rs 50,000 crore over five years for the National Research Foundation. This includes the establishment of a national institution for One Health, regional research platforms, and bio-safety labs. The Anusandhan National Research Foundation (ANRF) also receives an expenditure allocation of ₹50,000 crore over the next five years.
In the tech sector, the Budget proposes various new initiatives, such as the National Language Translation Mission, PSLV-CS51 launch, Deep Ocean Mission, and Gaganyaan Mission activities. A portal will also be launched to collect information on gig, building, and construction workers, benefiting around 15 million gig workers in India.
To promote digital payments and establish a digital economy, a scheme of Rs 1,500 is proposed. Furthermore, incentives are provided for incorporating One Person Companies (OPCs) and allowing their conversion into other company types.
The Union Budget 2021-22 has shown a commitment to fostering innovation, supporting start-ups, and strengthening the research ecosystem. With a focus on digital growth and technology-led initiatives, the Budget aims to boost the post-Covid economy and create a more resilient future.
