Indian Budget 2021

08 February 2021

Amidst the uncertainties around the pandemic, the Finance Minister (FM) presented the India Union Budget 2021 22. The budgetary proposals rest on the following 6 pillars a) Health and Well being b) Physical & Financial Capital, and Infrastructure c) Inclusive development d) Human Capital e) Innovation and R&D and f) Minimum government and maximum governance, with the government focusing on spending heavily on the first two pillars. The Budget laid down significant emphasis on capital investment/infrastructure development, with a proposed outlay of USD 75bn earmarked for capital expenditure.

While it was largely perceived that the burden on taxpayers would go up to facilitate government spending, it was welcoming to see that no such increase in direct taxes has been proposed in the Budget.

We are highlight some of the key tax and regulatory proposals, relevant from an international investor’s perspective.