Foreign direct investment and capital market are two major sources of capital in any industry.
Finance Minister Arun Jaitley in the Budget speech has announced a host of measures, including hiking tax exemption limit, incentives for the housing sector and relief in indirect taxes on auto and other sectors to promote industrial output and boost growth.
The TDP chief said he tried to speak to Prime Minister Narendra Modi as a 'courtesy' to inform him about the decision to quit but he did not come on line.
Commerce ministry suggests easy conditions for availing capital gains tax exemptions
The sale launched on Tuesday will be open till October 29.
The decision regarding this was taken by the Board of Approval in its meeting on September 18.
Auto sector has nothing to look forward to in the Budget.
Finance Minister Pranab mukherjee presents his 7th Budget.
'This has to be seen in the context not only of the legacy we inherited, but also of global economic weakness.'
'If after inheriting the very bad situation we have reached this level despite consecutive years of drought and no growth in the world economy, it is no accident.' 'It is a result of the sound macro economic policies followed by this government.' 'We have eschewed populism and stuck to a path of fiscal prudence.'
The exporters are optimistic that the industry will grow by 8-10 per cent and it can improve further if the government helps the industry.
The Finance Ministry's Economic Survey had projected a growth rate of 7-7.75 per cent.
As per the survey, 7 per cent of employers anticipate an increase in payrolls, 3 per cent forecast a decrease and 54 per cent expect no change.
The GST Council last year imposed a cess of 15 per cent on hybrid vehicles, in addition to the 28 per cent GST, leading to a total tax burden of 43 per cent against a previous tax rate of 28 per cent.
We must work in the direction of an innovation and technology driven economy which could boost up creation of jobs and open advanced and newer avenues of employment within the country.
Santosh Kamath, partner (infrastructure and government services), KPMG in India, expects an extension of a tax holiday for the sector.
He also affirmed that over time, as the government finances improve, the SLR will be brought down further.
'As the 1991 experience showed, the solution to a large trade deficit may be to open up the economy, not putting up protective walls,' points out T N Ninan.
The maker of Pulsar and Discover reported a net profit of Rs 1,138.20 crore in the second quarter, compared to Rs 1,402.42 crore a year ago.
Indian companies feel it will be difficult to take on the competition from Bangladesh, Cambodia and others, with their made-in-India products. Ethiopia offers ready-to-use sheds, income tax breaks, training subsidies, and a tax-free gateway into the US, Europe and China. Moreover, labour is available for $60 per month compared to $130-$150 in India.
This mindless medley of products does not create choice.
While most experts suggest the government loosen its purse strings and not worry about the fiscal deficit in a pandemic impacted year, it will be a tightrope walk for the government to increase spending without going overboard.
Jaitley has managed the difficult feat of sticking to the fiscal correction.
'The revival of household savings and investment is the litmus test of whether we are on the road to recovery,' says Nitin Desai.
Of the first 189 whose credentials have been probed from the 400 applicants till date, barely 30 make it - and only one qualifies for IPR benefits.
'In practice, GST will increase the pain of compliance, if not the cost, a lot.' 'It also has clauses that offer scope to create a single market for corruption,' warns Devangshu Datta.
'The current budgetary practice of shifting expenditures off-balance sheet in order to be seen to be meeting fiscal targets should be discontinued; additional fiscal stimulus would be imprudent; individual income tax rates should not be cut; GST rates should not be raised now,' advise Arvind Subramanian and Josh Felman.
Though startups find 17 mentions in the Budget speech of the finance minister, and have been promised tax exemptions, the reality is that only 2 per cent of the 4,648 applications received from startups for income tax exemption had been approved as of February 2019, according to an answer to a Parliament question. As India's startup space bubbles with activity - new, young players are tapping into opportunities opening up - there are local anti-portfolio stories circulating about investors missing opportunities in 'unicorns', or companies that have reached valuation of $ 1 billion, says Vandana Gombar.
For the sake of transparency, and to reduce undesirable bond market volatility, clarity on these would be welcome, preferably before the budgets for the next fiscal year get finalised, says Neelkanth Mishra.
With less than five months left for the report of the Fifteenth Finance Commission to be submitted, its chairman N K Singh said the report will have fiscal road map for states, depending on their current situation.
Key relaxations traced in final regulations.
The number of small units has come down drastically, as large companies have expanded their manufacturing capacity.
Charging the UPA top brass of aligning with industry chambers and not paying heed to coalition partners' demands, Left leaders on Friday said the forthcoming Budget should restore capital gains tax, rationalise corporate tax exemptions and export inc
The government should have mentioned clearly the specific structural reforms that were responsible for the deviation from the fiscal deficit target by half a percentage point, says A K Bhattacharya.
The heavy industries ministersaid that the proposal for the auto scrappage policy was ready and all stakeholders have provided inputs, therefore its announcement was likely very soon.
Seeing the potential of shale gas, Reliance Industries moved early to secure a foothold in the Marcellus shale reserves in the US.
There could be a strong incentive for tax payers to avoid the higher tax burden.
Recently, he had surprised many by talking of net neutrality
Petroleum Minister Murli Deora is seeking to give a big push to domestic oil and gas hunt through a slew of fiscal incentives including infrastructure status to exploration and production business and exemption from service tax.
