Union Budget 2021: Trade and Market

Finance minister Nirmala Sitharaman will present her third union budget on February 1, 2021. The government might announce measures regarding the extension of the facility of bulk clearance for e-commerce trading, to promote the growth prospects for the rapidly growing industry of the country.

E-commerce is facilitating the high-volume increase in imports and exports. There has been a multi-faced growth in this segment of the country which demands the need to balance between control and facilitation for the sector.

Latterly the import and export industry is charged to present the individual clearance document for every package with the Indian customs department, which adds cost to conduct business for traders via e-commerce. I think extending the facility of bulk clearance is a great idea after all as it will benefit in reducing the cost of the transactions. 

After the striking comment of the finance minister, it has created a lot of euphoria and excitement among citizens. It has further fuelled concern about the increase in taxes as the authority will have to spend money on infrastructure and sectors after the pandemic outbreak. Speaking of the financial markets, I think there is a need to alter the method we approach the markets. However, the technical setups in the markets must not be ignored. Currently, there is a critical inclination in the USD, the current rally in the equities has been the result of a high risk-on setup. The US Dollar index has been at its multi-months low; the Dollar weakness typically results in Emerging Markets seeing more robust FII inflows. 

Consequently, we are all waiting for this Union Budget so intensely since it will be interesting to see what new reforms, policies and programmes, schemes, measures, reliefs will the government introduce. Let's hope the budget reveals some growth prospects for the sectors and economy that will revive the nation from the COVID outbreak.