People across India on 1st February 2021 were anxious as Finance Minister Nirmala Sitharaman announced the annual budget for the fiscal year 2021-2022. The release of the union budget gained a lot of attention across the country as it was released after the protest of farmers which was a serious issue and other reason being released after the pandemic which hit the economy of India hard. Finance Minister has announced the scrapping of income tax for senior citizens, startups getting an extension in their tax holiday for an extra year, and increased spending on healthcare. It was also announced that India’s deficit is expected to increase to 9.5% of Gross Domestic Product in 2021-2022. Post these announcements, Sensex was at 47451.62, up 1165.85 points. The increase in capital expenditure includes spending on infrastructure and roads, improving the infrastructure of railways and urban infrastructure which gives momentum to industry activity and also creates jobs.
The pandemic has made many businesses within the communications, advertising, and entertainment across the world suffer and many experts believe that the propulsion to help Small and medium-sized enterprises will also mean some relief for the start-ups in the advertisements, media, and entertainment sectors. The executives of the Advertising Industry are optimistic about the impact of advertisements on the sectors regarding which the announcements were made. The union budget 2021-2022 is a growth-oriented budget allocation that aims to provide much-needed momentum to the growth of the economy. The focus on innovation, privatization, and supporting start-ups is expected to benefit the whole corporate sector and thus will also help the media and entertainment industry as it paves way for the strong growth of advertising. One of the good things about the annual budget is that the taxes are not raised and the process of the taxation is also simplified. Instead of increasing the taxation, borrowings and disinvestments were proposed as the preferred funding route. So, if the economy recovers, the advertising industry will benefit. It is believed by many experts that the current budget will fuel the economy of India which in turn will help the advertising industry to experience growth after struggles that it faced due to the pandemic.