Saturday, 12 July 2014

Indian Union Budget (2014-2015)

Unknown 4:21 am , , No comments :
Indian Budget 2014-2015
Measures that analysts and investors expect for key industrial sectors:
Automobiles:
  • Rollout of a goods and service tax (GST) to standardise the cost of selling cars.
  • Support to manufacture electric and hybrid vehicles.
Financial Services:
  • Tax exemption on long-term infrastructure bonds.
  • Increase in housing loan interest limit beyond 150,000 rupees for tax exemption.
  • Increase of foreign direct investment (FDI) in Insurance sector to 49 percent from 26 percent.
  • Higher allocation for capital infusion in state-owned banks.
  • Tax incentives to encourage expansion of affordable housing.
Healthcare:
  • Tax incentives for investment in research and development.
  • Simpler tax norms, including rapid implementation of GST.
  • Increase tax exemption for setting up hospitals.
  • Revive clinical trials in India.
  • Double healthcare expenditure to 8 percent in next 5 years.
Infrastructure:
  • Accelerate dedicated plans for dedicated freight corridors.
  • Open more projects, particularly parts of the railway network, to foreign direct investment (FDI)
  • Set up a national fund for infrastructure projects, which could source funds from China or Japan.
  • Roadmap for attracting long-term debt for infrastructure projects.
Metals and Mining:
  • Address issues around mining regulations and adopt new reforms for raw material security.
  • Reforms to reduce logistical bottlenecks in transport of metals and raw materials to and from mines.
  • Introduction of competitive auctions for allocation of minerals and raw materials.
  • Continuation of tax benefits on capital expenditure.
Oil and gas:
  • Reduction of subsidy bill through fuel price reforms.
  • Re-introduce import duty on crude oil.
  • Continuation of diesel price hikes and deregulation of diesel price if any.
Power:
  • Fast tracking of stalled projects, easier and reliable access to power plants and coal mines
  • Deregulation of electricity prices
  • Tax concessions and incentives to promote investment into renewable energy
Real estate:
  • Streamlining of tax laws to enable listing of real estate investment trusts (REITs).
  • Establishing a single window clearance for speedy project approvals.
  • Grant industry status to the sector, which would lower the risk weightage assigned to it by banks.
  • Increase in tax deduction benefit limit on home loan interest, which is currently capped at 150,000 rupees annually.
Consumer goods:
  • Implementation of (GST) and tax reforms that will lead to an increase in personal disposable incomes.
  • Announcement of easing of rules on FDI in online retailing.
  • Increase in tax on Cigarettes, Alcohol.

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