Budget 2021: What does PR industry expect?

Finance Minister Nirmala Sitharaman will be presenting Budget 2021 on February 1, 2021 amidst the backdrop of the global pandemic. After a tumultuous year, this paper-less Budget has all eyes on it with hopes of bringing good days ahead. With India Inc. optimistic about a revival after witnessing huge economic slump in the past 11 months, accelerating growth, improving health services, amplifying the digital rush and bringing stability in business operations are some of the key expectations from the Budget.

With business objectives being aligned with PR objectives lately, the PR industry too is optimistic about the new Budget. Let us dig in to know the expectations this year.

Archana Jain, Managing Director & CEO, PR Pundit

We need the Budget to instil hope and confidence in the people and catalyse growth of the economy. A lower level of GST would aid growth of the PR industry. Equally, a stricter enforcement of the stipulated credit period for payments to MSMEs will fortify our financial health.

Dr Rajiv Chhibber, Vice President External Affairs, Sahajanand Medical Technologies Pvt Ltd.

The Union Budget 2021 is key to the revival strategy for the Indian economy post Covid. From a healthcare perspective, the government needs to boost domestic market growth by pushing for investments in healthcare infrastructure and manufacturing, both from a medical device and pharmaceuticals perspectives. This will increase India’s participation in the global value chains and R&D.

And finally, to become 'Atmanirbhar Bharat', there is a need to boost a facilitative environment for domestic industries by expanding the market and positioning India as a big consumption hub with sufficient sales and preferential purchase procurement for make-in-India goods. This will further catalyze the drive towards accomplishing the 'Vocal for Local' call.

Nitin Mantri, Group CEO, Avian WE

Even as the coronavirus pandemic continues to affect lives globally, the incredible breakthroughs in vaccine development signal that 2021 will be about focusing on ways to thrive. And the 2020-21 Union Budget, I hope, will give struggling sectors and industries the impetus to recover, stabilise, and flourish.

I am looking forward to several pro-growth policy announcements that will enable infrastructure building and job creation. I also expect Finance Minister Nirmala Sitharaman to give a big push to digital infrastructure, reduce taxes on medical expenses, and provide incentives for private investment in the healthcare sector. 

All in all, I hope Budget 2021 will kickstart India's economic growth, give a boost to Swadeshi 2.0 and address the issue of tax reforms, thus paving the way for a truly ‘Atmanirbhar Bharat’ that provides a level-playing field to all.

Bhaskar Majumdar, Head - Corporate Affairs, Communications and Digital, Egis India Consulting Engineers Pvt. Ltd

This will be the first Budget in a post-pandemic economy, and this will also be the first paperless Budget. So a lot of expectations are set across the sectors, age groups and demography. We all have been facing a lot of challenges during this lockdown and all eyes are on our Finance Minister Nirmala Sitharaman who has promised a "never before" like Budget. The Budget should focus more on reviving the country's economy, business recovery and bringing in relief for everyone.    

Dilip Cherian, Image Guru and Consulting Partner, Perfect Relations

For the PR and creative industries, expectations are of two kinds. 

1.  If the Budget helps trigger higher economic growth, we’ll be able to grow alongside. Post-pandemic investment and new business initiatives are all waiting in the wings. A supportive Budget is the need of the hour. And one that attracts global players to set up shop here, is essential.
2. Special benefits to startups and the digital players to grow and prosper, will help the PR industry tackle new challenges more globally. Any restrictions on digital platforms, censorship, or walled gardens, will hurt the creative Industries. Let’s hope these don’t figure.

Subir Moitra, Lead – Strategic Communications & Alliances, Thinkthrough Consulting Pvt. Ltd.

The financial year 2020-21 saw unprecedented disruption of life and livelihoods around the world. India Inc. has been optimistic about the Budget. Industry leaders are positive about the economic revival in India. Schemes such as ‘Aatmanirbhar Bharat’ and Production Linked Incentives (PLI) have done well to foster self-reliance and stabilize economic growth in the country. While these schemes have contributed the most to the manufacturing, life sciences and consumer products sector, the rest of the industry is also positive about stimulating their respective businesses by pumping R&D spending and income-linked incentives. For the economy as a whole, most industry leaders believe that boosting infrastructure spending would lend the much-needed momentum to their sectors. They believe that mass vaccination drives, government stimulus packages and other policy changes, focus on infrastructure, and ongoing digitization efforts are some of the key areas that will help India soar.

Vineet Handa, CEO, Kaizzen

The Budget for FY 2021-22 is very crucial for the industry and the business sentiments and would expect to see measures that help consumers get more disposable incomes which will drive consumption and therefore help boost overall economy. This will further help companies to increase their bucks in marketing and communication.

Also, nowhere in the world PR and Digital services are taxed at 18% GST. Rationalizing the GST will further help to boost the sunrise sector like ours.

Roma Balwani- Sr. Director, Brand & Communications, Vedanta Group  

This Budget is eagerly awaited as it will address an economy which has faced unforeseen circumstances and needs game changing reforms. Boosting domestic production, lowering import dependence to create an ‘Atmanirbhar Bharat’, and policies that will support growth of new industries are needed. 

The socio-economic areas where we wish the government focuses is healthcare and education. 

India’s digital economy stood the test in time during the pandemic. The virtual world became a reality and this industry needs measures & policies to create a robust digital eco-system and to incentivize digital adoption by businesses.

Shailesh Goyal, Founder-Director, Simulations Public Affairs Management Services

The PR industry has been hit hard by the Covid-19 pandemic, and needs support from the government to tide over the crisis. As a start, the government should, at least for a year or so, lower the tax rates for small enterprises, especially for those in the service industry who have borne the brunt of the crisis.

The system of 7.5% TDS on all payments instead of the earlier 10% is leading to better cash flows for firms and individuals, and my suggestion is that it should be continued, at least for the coming financial year.

The media industry, on which the PR industry is heavily dependent, has also suffered huge losses because of the pandemic. It is imperative the government announces measures to support the media industry.

This is also a perfect time for hiking personal income tax limits. This will provide the much-needed relief to people, and also give a boost to the economy as more money in their hands will lead to higher spending and spur growth. We realise the government has its own constraints as its own revenues have also been hit by the pandemic, but the FM should avoid the temptation of imposing any more financial burden on people.

Nirav Lalan, COO, Team Pumpkin

The accelerated push to digital during COVID-19 has given more powers in the hands of our consumers and now the content, medium and tonality of the ads are being directly controlled by them. Linear media clearly took a backseat and digital immediately overtook the space. To stay current and connected, every brand had to revisit their communication, PR and marketing strategies. Even the most orthodox brands shifted to the unorthodox media and relied heavily on social platforms to keep their customers engaged.

Now when everybody is talking about going back to the ‘old normal’ in the post-vaccine phase, we do see traditional marketing and advertising rebounding. Despite these contemplations, digital marketing and non-linear advertising will still hold the crown. And keeping the upturn of events in mind, we are hoping this year’s Budget to also focus on digital and technology like last year. We also expect some bold measures by the government to boost demand and accelerate the pandemic-impacted sluggish economy.