Union Budget 2022-23: What brokerages predict for key sectors

Several sectors expect the government to announce relief measures aimed at overcoming the challenges created by the pandemic-induced restrictions.

Announcements made by Finance Minister Nirmala Sitharaman in the upcoming Union budget 2022 will be crucial for economic recovery after the third wave of the Covid-19 pandemic.

Several sectors expect the government to announce relief measures aimed at overcoming the challenges created by the pandemic-induced restrictions. Small businesses, infrastructure and manufacturing are likely to be areas of top focus as they will help boost job creation.

While most sectors have faced disruptions due to the pandemic, top brokerage firms feel there are some crucial sectors that the budget needs to focus on for a quick economic revival. Here is what some of the top brokerages expect from the government in the upcoming budget.

Morgan StanleyThe top US brokerage firm is expecting measures for affordable housing, income tax and GST reforms for real estate, according to a BloombergQuint report. Morgan Stanley also suggested that the government needs to reduce import duty on aviation fuel for the pandemic-hit domestic aviation sector.For automobile sector, the firm expects incentives for setting up low emission mobility infrastructure. There should be a reduction in import duty on fully built EV units. Morgan Stanley also wants Covid-19 relief packages and health infrastructure investments in budget 2022.JefferiesBrokerage firm Jefferies said the government must allocate more funds for rail and roadways.While it said the government is unlikely to offer subsidies on LPG and kerosene in the upcoming budget, Jefferies expects a comprehensive tax policy for all tobacco products in the country.The government may provide fund for booster dose of Covid vaccines, according to the brokerage. Deutsche Bank said the government must look to announce measures aimed at creating jobs in the upcoming budget. In addition, it must also be ensured that inflation does not go out of control.Meanwhile, JP Morgan expects the government to announce measures under the government’s 'Atmanirbhar Bharat' campaign and steps to boost farm incomes in Union Budget 2022-23.

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