In the budget 2020, announcement of a series of moves to address issues in the agriculture, infrastructure and financial sectors in a bid to revive growth in the economy are going to create conditions for some businesses to flourish.
- In the Budget 2020 the government has allocated total of Rs 1.3 lakh crore for agriculture and farmers’ welfare (all schemes included). Aggregate of all the spending by the central government on rural schemes is budgeted to go up by just 11% in FY21.
- The government set aside Rs 2.83 lakh crore for agriculture and irrigation sectors, and allocated Rs 3.60 lakh crore for the Jal Jeevan Mission, which aims to ensure piped water supply to all households.
- Increased allocation towards agriculture & farm welfare by 32% to Rs.1,343 bn.
- Food subsidy budget for FY21 has been increased by 6%
- Fertilizer subsidy budget for FY21 has been reduced by 11%
Sectors to benefit from the govt spend:
Tractors, agrochemicals, NBFCs that focus on the rural space and FMCG companies having higher penetration in the rural areas, consumer discretionary companies having a rural presence, home appliances, and consumer durables.
Stocks those ma benefit the most from the expenditure done towards rural India: