New Delhi: ‘Futuristic’ Budget 2022 presented by the Union Finance Minister Nirmala Sitharaman on Tuesday has emphasized strengthening the crippled economy, which has suffered during the Covid pandemic.

The budget has not been addressed to resolve the growing employment problem and it has also not given any political promises for five states, which will go for elections in February 2022.

Union Minister proposed increasing the size of the economy's annual spending to ₹ 39.5 lakh crore ($529 billion) to support growth plans.

Who will be benefited from this Budget

EV Battery Makers

To promote electric vehicles, the new battery swapping policy would help battery manufacturing industries including Exide, Amaron and Amara Raja Batteries Ltd.

Transport, Infrastructure

Construction of 25,000 km highways, remote roads, mass transit cities and 400 new Vande Bharat trains in three years will benefit key infrastructure players like Larson & Toubro Ltd., GMR Infrastructure Ltd., KNR Constructions Ltd., IRB Infra Ltd., Container Corporation of India Ltd., Allcargo Logistics Ltd. and Indian Railway Catering and Tourism Corp.

Metals

Providing 24 hours drinking water to 38 million homes at a cost of 600 billion rupees will be benefited to Country’s  metals producers, including Vedanta Ltd., Tata Steel Ltd. and JSW Steel Ltd.Jindal Stainless Ltd. Pipemakers Jain Irrigation Systems Ltd., KSB Ltd., Kirloskar Brothers Ltd. could also benefit.

Solar

Production-linked incentives worth ₹ 19,500 crore for solar modules to boost local manufacturing will turn the focus on growth at leading panel manufacturers, including Tata Power Ltd.,  Suzlon Energy Ltd., Adani Enterprises Ltd. and Reliance Industries Ltd.

Cement, Construction

The government's plan to build more homes for low-income earners across cities will help cement manufacturing industries like UltraTech Cement Ltd., Ambuja Cements Ltd, Birla Corp. and ACC Ltd.

Telcos, Data Centers

Announcement to launch of 5G auctions in 2022 will help boost telco sector and the classification of data storage as infrastructure spending will benefit companies including Bharti Airtel Ltd., Reliance Industries Ltd., Vodafone Idea Ltd., Mahanagar Telephone Nigam Ltd., HFCL Ltd., Tejas Networks Ltd., Sterlite Technologies Ltd..

Digital Finance

Digital rupee by RBI in 2022 will boost more digital transactions in the coming days. Digital financial services providers in India are set to gain after Tuesday's budget focused on expanding such services. These include PB Fintech Ltd., the parent of Policy Bazaar, newly listed Paytm's owner One 97 Communications Ltd., eClerx Services Ltd. and Paisalo Digital Ltd., which provides smaller loans through its app.

Defence Manufacturers

Allocation 68% budget allocation to the defence sector help the companies manufacturing defence equipment. Local defence manufacturers will get the order to produce defence equipment. Gainers are Larsen & Toubro Ltd., Bharat Forge Ltd. and Paras Defence and Space Technologies Ltd. The drone startups that could benefit include Zeus Numerix, New Space India Ltd, and BotLab Dynamics.

Who will be affected in the Budget 2022

Affect state-run banks business

RBI plans to start a digital rupee that would adversely affect the traditional banking sector. The move will affect India’s archaic lenders State Bank of India Ltd., Bank of Baroda, Canara Bank, Union Bank of India, Bank of India and Punjab National Bank.

Crypto Players

Levying a 30 % tax on transactions of cryptocurrencies, including cryptocurrencies and non-fungible tokens, may rule out a blanket ban on such tokens for now but it will make trading in them less profitable. This will also affect crypto exchanges. Players affected include WazirX, Zebpay, CoinDCX and Coinswitch Kuber.

Coal and Thermal Power

The companies to watch after India's incentives for solar power and plans to use biomass pellets in thermal power plants in a bid to rely less on coal include Coal India Ltd. Singareni Collieries Co., Adani Enterprises Ltd. These companies are suppliers of imported coal.

Stainless Steel

India has made plans to revoke some anti-dumping and countervailing duties on stainless steel, coated steel flat products, bars of alloy steel and high-speed steel, given the rise in metal prices. This is expected to affect the biggest producer Jindal Stainless Ltd. and Tata Metaliks Ltd.

Automobile Makers

Car manufacturers, which received little attention from the finance minister, continue to reel under a global semiconductor crunch. The S&P BSE Auto Index was the worst performer among 19 sectoral gauges after Tuesday's budget announcement. Companies to watch include Maruti Suzuki India Ltd., Tata Motors Ltd, Mahindra & Mahindra Ltd. (Source NDTV)

A glance at Budget 2022

Tax slabs remain unchanged, but taxpayers can now file updated income tax returns within two years in a one-time window. 5G mobile services to be rolled out within 2022-23

E-passports with embedded chips and futuristic technology to be rolled out next year.

In boost to EV sector, battery swapping policy to be introduced. A 30 percent tax will apply on income from the sale or acquisition of virtual and digital assets such as cryptocurrency.