Introduction
Amidst the current Omicron wave across the world, leading world economies, including India, are on the path of recovery from the damage the COVID-19 pandemic has done. With the predicted growth of real GDP estimated at 8.3 per cent, as forecasted by the World Bank, the Indian economy is at the centre of the limelight in world economics.
In this article on expectations from the Union Budget 2022, we have highlighted industry-wise expectations for reforms, subsidies, and support mechanisms from the Government of India.
Hospitality Sector
The hospitality sector is amongst the sectors that have been most disrupted from the COVID-19 pandemic and pursuant lockdown and travel restrictions that were imposed across the country.
This sector has been significantly suffered a crunch on liquidity and hence we expect the following reforms, support and benefits to accrue from the union budget 2022:
- Reduction in tax rates on both corporate and normal assesses.
- Fund for extending liquidity to the sector in form of collateral-free top-up of working capital limits
- Increased or priority access to MSME reforms for the stressed entities.
- Introduction of schemes for the promotion of travel and tourism by the government.
