the finance ministers used to have leather briefcases to carry the budget documents . The budget briefcase , which was the British ' s legacy , was a copy of the ' Gladstone box ' used in the British Budget . Sitharaman , in 2019 became the first finance minister to use the traditional bahi khatta with the national emblem . The minister further changed the customary practice when she switched the swadeshi product with a digital Tablet as this year India will release its first paperless Budget . The Budget makes a fundamental shift from the previous Budget , is growth-oriented , and lays a strong foundation for Atmanirbhar Bharat .
ECONOMY
I ECONOMIC OVERVIEW
India was already experiencing economic headwinds before the pandemic , with GDP registering 4 % growth in FY20 . With the onset of the pandemic and lockdown restrictions on economic activity , GDP growth for FY21 is estimated to decline by 7.7 %. Private consumption is estimated to contract by 9.5 % in FY21 owing to demand shrinkage based on income loss , mobility restrictions , and supply constraints . Government consumption is estimated to rise by 5.8 % due to increased expenditure as part of pandemic relief packages . Investment is estimated to decline by 14.5 % due to economic uncertainty and delays in implementing capital projects . The agriculture sector is estimated to grow at 3.4 % in FY21 , mainly due to early relaxation of lockdown restrictions for farming activities , a good monsoon , efficient procurement of foodgrains , and an increase in Kharif and Rabi acreage .
However , the manufacturing sector is expected to decline by 9.4 % during FY21 due to weakness in domestic and global demand , temporary closure of production units during the lockdown , and supply constraints . The service sector is also estimated to decline by 8.8 % in FY21 , primarily due to mobility restrictions , low demand for contact services , and postponement of discretionary expenditure by consumers .
ECONOMIC OUTLOOK
Consumption indicators indicate demand recovery in Q3 , including FMCG and auto sales and GST collection . Sectors like health , pharma , technology ( e-commerce , FinTech , EdTech , etc .), and telecom have shown growth potential during the pandemic . They are likely to witness increased investment and robust growth in the future too . The pandemic has led to a higher preference for digital services and online transact ions , promot ing many companies ' digitalization . Further , companies are investing in improving their supply chains and distribution networks to overcome supply challenges and risks that came to light with the COVID-19 disruption . Consumption indicators , including FMCG , auto sales , and GST collection , indicate a faster demand recovery in Q3 . There is a continued momentum postpandemic in health , pharma , telecom , and technology ( e-commerce , fintech , ed-tech , etc .) ow ing to a signif icant shift in consumption patterns . The pandemic has led to a preference for digital services and the adoption of digitalization in many companies . GDP is estimated to grow at 11 % in FY22 owing to robust growth in consumption and investment and lower base effect .
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Economic Challenger // ISSN 0975-1351 / Volume 23 / Issue 91 , April-June 2021