Skip to content

Budget 2021 one month to go: what lessons can the UK learn from India?

Budget 2021 one month to go: what lessons can the UK learn from India?
Jordan Major

With a month to go until the Treasury announces the UK’s 2021 budget, all eyes are on Rishi Sunak to see what measures he will take to stimulate the economy after a year’s worth of pandemic restrictions.

Earlier this week, India shared its budget, balancing between supporting growth and aiming to reduce the country’s deficit (from 9.5% of GDP in FY21 to 6.8% of GDP in FY22), and offers a boost to the country’s startup community. The budget was met with wide praise, with measures to stimulate the economy without enforcing tax rises on the population.

India’s Finance Minister announced welcome funding for small businesses and startups, with a year-long extension to the startup tax holiday in place. £1.6 billion – more than double last year’s figure – was allocated to the Ministry of Micro, Small and Medium Enterprises (MSME). Other measures to be put in place included collateral-free loans for businesses and the launch of a fund of funds for MSMEs.

SMEs will potentially drive the recovery of the UK economy

With SMEs accounting for 99.9% of the business population (6.0 million businesses), and three-fifths of the employment, SMEs holding the potential to power a strong recovery to the UK economy, Sunak, and the government should work to ensure that UK SMEs are given a similar boost to India’s.

Nayan Gala, the founding partner at venture capitalist JPIN VCATS, shared his view with on the upcoming UK budget:

“The UK should take inspiration from India’s budget – big spending across the board, without large raises in taxes. The budget looks like a great step for India and one that the UK government can learn from. Economic growth will be the cornerstone of the UK’s recovery, and growth is something that startups and small businesses excel in, even in the toughest of circumstances.

The UK’s SMEs are the backbone of our economy and are set to be a key player in the UK’s post-pandemic, post-Brexit recovery. Boosts to small businesses should be a high priority for the Treasury in this year’s budget – it’s crucial that money is set aside for our startups and family businesses.”

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts