Each one of us ringed in the year 2022 with full joy and fervor. While welcoming this new year, it is also important to look back at the events of 2021, the year that was filled with unexpected events. From farmers’ protests to Olympic gold, apart from the pandemic, we have witnessed noteworthy events in the last year.
Here’s a quick update of the major economic and finance current affairs of India in 2021:
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01st February – Union budget was presented
Below are the highlights of the Union Budget 2021:
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For FY 2021-2022, the budget for the health and well-being sector is estimated to be Rs. 2,23,480 crore which is a rise of 137% on year to year basis
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The individual and corporate taxes remain unchanged and the tax holiday for start-ups is extended till 31st March 2022
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FDI limit in the insurance sector is increased to 74% from 49%
Many other initiatives, reforms, and proposals were present in the budget with the focus on – Physical & Financial Capital and Infrastructure; Health and Well-Being; Inclusive Development for Aspirational India; Minimum Government Maximum Governance; Reinvigorating Human Capital, and Innovation & R&D. The market soared up by over 4 percent by the end of the day as there was nothing to negatively impact investors sentiment.
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23rd June – ED transferred assets of defaulters to banks
The Enforcement Directorate (ED) transferred assets worth ₹8,441.50 crores to public sector banks that suffered losses because of frauds committed by liquor king Vijay Mallya and diamond barons Nirav Modi and Mehul Choksi.
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23rd July – Zomato IPO created a buzz among investors with its IPO
India’s food delivery giant, Zomato Ltd., made its debut on Dalal Street as the stock opened at Rs. 116 on the NSE. It is the first Indian unicorn startup and the first online delivery company to get listed on the exchange. Apart from Zomato, many other startups like Nykaa, Paytm, and PharmEasy got listed on the exchange in the last year. A key reason for this is liberal government policies and tax relaxations among others.
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05th August – Government announces nullifying retro taxes
The Taxation Laws (Amendment) Bills, 2021, was passed by the Parliament in which the government has nullified the retrospective tax. The issue came to light when the government asked Vodafone and Cairn to pay thousands of crores as retro tax, creating a negative image in front of the investors who are planning to invest in India. Nullifying this tax will attract foreign investments in the country.
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13th August – India records highest-ever exports
The Ministry of Commerce and Industry released data that confirmed that India exported $35.43 billion worth of goods in July, the highest ever in a month. This growth was due to higher demand for engineering products, gems & jewelry, chemicals, textile & apparel, and electronics.
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08th October – Tata group to acquire 100% stake in Air India
As the government accepted the winning bid of Rs. 18000 crore by Tata Sons, Air India came back to the Tata Group after 68 years. It is now the 3rd airline brand in Tata Group as they hold a majority stake in AirAsia India and Vistara.
Other political, social and sports events that happened in India are:
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01st January – India started its 2-year tenure as a non-permanent member of the United Nations Security Council (UNSC)
India sat in the 15 nation UNSC for the 8th time as a non-permanent member. Besides India, Norway, Ireland, Kenya, and Mexico joined other permanent as well as non-permanent members.
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16th January – India rolled out a COVID-19 vaccination drive
India launched the world’s largest vaccination drive which covered the length and breadth of India. Frontline workers were the first ones to get vaccinated. Earlier that month, the COVID-19 vaccine, Covishield, was approved. This was a major step taken by India to curb COVID-19.
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27th January – ByteDance to shut its operations in India
ByteDance, the parent company of TikTok, shut its Indian operations after the ban of the immensely popular app TikTok. Moreover, they also laid off over 2,000 employees in India and continued their operations with minimum staff in selected departments such as legal, human resources, accounts, and administrative.
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29th March – Ship blocking the Suez Canal is freed
Suez Canal is one of the only two routes that link Asia to Europe and North as well as Northeastern America. The blockage in Suez Canal because of stranded container ship led to an increase in freight charges, delays in imports and exports, an increase in oil prices, and a dip in cargo traffic in India. The day on which the ship refloated and the traffic was reopened after almost a week, Asian markets edged higher and the oil prices slipped.
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01st May – Vaccination for 18+ started
So far, the government has allowed vaccination only for frontline workers and those above 45 years of age. In phase 3 of the COVID-19 vaccination program, the Indian government has opened vaccination (Covishield and Covaxin) for people above 18 years of age.
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17th May – Cyclone Tauktae strikes Gujarat
Starting on 17th May, a powerful and deadly tropical cyclone in the Arabian Sea, Tauktae, took many lives and several people were forced to evacuate their homes in Gujarat. The states of Goa, Karnataka, and Maharashtra too received heavy rainfall during the period of Cyclone Tauktae.
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22nd June – NCLT approves the Jet Airways resolution plan
National Company Law Tribunal (NCLT) approved the Jalan Kalrock Consortium’s resolution plan, 2 years after Jet Airways went into insolvency. The consortium had proposed a total cash infusion worth Rs. 1,375 crores which will be used to pay financial creditors, for capital expenses, and working capital requirements as per the plan.
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07th July – Major cabinet reshuffle took place
The central government reshuffles the union cabinet, sacking several leaders and ministers. Around 12 ministers resigned from the Prime Minister’s cabinet, while 43 ministers took an oath.
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23rd July – 08 August – India bags in Olympic medals in various games
1 gold, 2 silver and 4 bronze – India won 7 medals in Tokyo Olympics 2021, our highest ever! This was a great achievement for the country from the last time we stood in the Olympics. Our star performers are – Neeraj Chopra, Men’s Hockey Team, Bajrang Punia, Lovina Borgohain, Ravi Dahiya, Mirabai Chanu, and PV Sindhu.
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09th September – Ford India announces major restructuring
Ford has a long-term plan that includes expansion of its Ford Business Solutions globally with a focus on engineering, technology, and business operations centers of excellence. As per its restructuring plans, Ford is planning to bring some of its iconic global and all-new hybrid vehicles like Mustang to India. Moreover, it will continue to work with its existing dealer network to restructure from sales and services to parts and services.
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21st October – India hits 100 crore Covid vaccine milestone
In the battle against the Coronavirus pandemic, India achieved another significant milestone as it touched 100 crore vaccinations. The top 5 states that administered the highest number of doses are – Uttar Pradesh, Maharashtra, West Bengal, Gujarat, and Madhya Pradesh.
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03rd November – Covaxin gets WHO approval
COVID-19 vaccine, developed by Bharat Biotech in India, got approval from the WHO (World Health Organization). It facilitates travel for Indian citizens across many countries as well as contributes towards vaccine equity.
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19th November – Farm laws revoked
The 3 agricultural laws that sparked year-long protests have been revoked in the Lok Sabha marking a historic victory for the farmers. 3 weeks after this decision by the government, protesting farmers at the Singhu Border ended their agitation.
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12th December – Harnaaz Sandhu crowned as the Miss Universe
India bagged its 3rd Miss Universe title as Harnaaz Sandhu of Chandigarh won this beauty pageant which was held at the Port of Eilat in Israel. Before her, Sushmita Sen (1994) and Lara Dutta (2000) brought in the crown.
Conclusion
The year 2021 has been full of ups and downs, however, thanks to fellow Indians, there were several moments such as Miss Universe and Tokyo Olympics that made us proud. Looking back gives us a glimpse of major events that grabbed our attention and prepared us for what may happen in the future. Let’s keep our fingers crossed and pray for this new year 2022 to be full of happiness and memorable moments. Happy New Year!
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling of any stock.
