Finance Minister Ms. Nirmala Sitharaman presented a Budget with a roadmap for New India, keeping a 10 year vision in mind.
Here are the Budget 2019 highlights:
- 10 Points of Vision:
- Social infra, digital infra in every sector
- Building pollution free environment
- Digital India in every sector
- Export of food grains
- ‘Make in India’ with stress on small businesses
- Water management and clean rivers
- Ayushman Bharat and Clean India
- Space programmes, Safety of citizens
- One nation, one grid to ensure power connectivity
- Examining opening up of FDI in aviation, media and animation
- Transportation:
- All-weather road connectivity provided to more than 97% of eligible and feasible habitations, made possible by a high pace of road construction
- Driving Force: Rs 80,250 crore dedicated to building 1,25,000 km of roads in the next 5 years
- 25 lakh kilometers of roads will be upgraded
- Inter-operable One Nation One transport card: National transport card for universal travel which can used on various modes of transport (road, railways etc). The card can also be used as a ATM card for withdrawing money
- Govt plans to create MRO (Manufacturing, Repair and Operate) industry
- PPP to be used to unleash faster development and the delivery of passenger freight services
- Comprehensive restructuring of National Highways Programme for creation of National Highways Grid
- Government envisions using rivers for cargo transport,it will also decongest roads and railways
- Rs 100 lakh crore investment for infrastructure over 5 years
- Start-ups:
- An exclusive TV channel for start ups
- Easing angel tax on start-ups
- Investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium
- Startups don’t require disclosing share market value to category-II investors
- Ease of living:
- Rs 3,000 pension per month for informal sector workers
- Aadhaar card under 180 days for NRIs on arrival in India
- By 2022, power and LPG will be provided to all households
- Women empowerment:
- NarituNarayani: Interest subvention scheme for women
- Govt expands SFG programme: Rs 1 lakh loan to be provided for woman
- Railways:
- A new PPP model will usher the new dawn of Indian railway
- Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030
- MSME:
- 2% interest subvention for GST-registered MSME on fresh or incremental loans
- ‘Stand Up India’ Scheme to continue till 2025
- Propose to commence television channel for start-ups
- To extend pension benefit to retail traders with annual turnover less than Rs 1.5 crore
- New payment platform for MSMEs to be created
- Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme: FM (PIB)
- NRI investment in Indian capital market is less. I propose to merge the NRI portfolio investment scheme route with FPI route
- Affordable housing:
- Rental laws to be reformed. Modern tenancy law will be shared with states to promote house renting
- Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly
- Education:
- Govt to launch ‘Study in India’ programme to attract foreign students in higher education
- Allocate Rs 400 crore for world-class higher education institutions in FY20
- To unveil new education policy
- National research foundation to fund, coordinate and to promote research in the country
- New Higher Education Commison with focus on higher autonomy
- New national education policy to propose changes in school, higher education
- Centralisation of research a bad idea. It could curb free speech. National Research Foundation to fund and coordinate research in India
- A National Education Policy to transform India’s higher education system to global standards
- From no single Indian institute in top 200 universities ranking until 5 years ago, we now have 3 institutions in the top 200 global institutions bracket
- Rs 400 crore for world-class higher education institutions in FY20
- Study in India — ‘reverse brain drain’ sought. About higher education, the spirit is strong, the flesh hopefully to be made less weak
- National Sports Education Board for development of sportspersons to be set up under Khelo India
- FDI:
- Local sourcing norms will be relaxed for the Single brand retail sector
- Govt of open FDI in aviation, insurance, animation AVGC and media
- Investment:
- To discourage the practice of making business payments in cash – to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account
- Increase in surcharge for those earning Rs 5 crore and above
- Govt waives MDR changes on cashless payment
- On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit guarantee
- Existing Know Your Customer norms for Foreign Portfolio Investors to be rationalized and simplified, to make it more investor-friendly
- Credit Guarantee Enhancement Corporation will be set up in 2019-20, action plan to deepen markets for long-term bonds with specific focus on infra sector to be put in place : FM (PIB)
- Existing KYC norms for FPIs to be rationalized and simplified to make it more investor friendly
- Long-term bonds for market
- To allow FIIs & FPIs investment in debt securities issued by NBFCs
- Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector
- Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations
- To merge NRI portfolio route with FPI route
- To hike statutory limit for foreign investment in some companies
- To set up a credit guarantee enhancement corporation
- Govt will take up measures to make RBI & SEBI depositories inter-operable
- SEBI to mull increasing minimum public shareholding to 35% from 25%
- User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number
- To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collaterals
- Annual Global Investors’ Meet to be organized in India, using National Investment and Infrastructure Fund(NIIF) as the anchor to get key sets of global players to come &invest in India
- Annual Global Investors’ Meet for attracting global players to come and invest in India
- To allow FPIs to subscribe to listed debt papers of REITs Auto sector
- FAME II scheme aims to encourage faster adoption of electric vehicles by the right incentives and charging infrastructure
- Govt has already moved GST council to lower the GST rate on electric vehicles(EV) from 12% to 5%
- Local sourcing norms will be relaxed for FDI
- New KYC for foreign investors
- 100% FDI will be permitted for insurance intermediary, says Nirmala Sitharaman
- Social Stock Exchange under SEBI proposed
- Payment platform for MSMEs to be created: FM (PIB)
- FDI inflows remained strong in 2018-19 marking a 6% growth
- 350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans
- Government has smoothly carried out consolidation, reducing the number of PSBs by 8
- PSBs are now proposed to be provided Rs 70,000 crore of capital to boost credit
- To discourage the practice of making business payments in cash FM proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account
- For Rural India:
- 100 new clusters to be set up in 2019-20 under SFURTI, which will enable 50,000 artisans to join the economic value chain
- Gaon, Garib and Kisan are the focus of our government
- Ensuring farmers access to safe and adequate water is important initiative the government will work toward
- New Jal Shakti ministry will work with states to ensure HarGhar Jal for all rural houses by 2024
- Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years
- Govt will set up 100 new clusters for 50,000 artisans in FY20
- To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana
- Every single rural family except those unwilling to have electricity by 2022
- By 2022, every single rural family except those who are unwilling to take the connection, will have an electricity and a clean cooking facility
- 5 lakh villages are now open-defecation free. 9.6 crore toilets have been constructed since 2014
- Invest widely in agricultural infrastructure
- 35 crore LED bulbs distributed under the Ujjwala scheme
- Agri:
- Fishing and Fishermen communities are closely aligned with farming and are crucial to rural India
- Ease of doing business should apply to farmers too
- Govt to promote innovative zero Budget farming
- 10,000 new farmer producer organisations
- 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries
- hope to form 10,000 new farmer organisations
- 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries
- Space:
- India has emerged as a major space power. It is time to harness our ability commercially
- A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO
- State of the economy:
- The government has given a massive push to all forms of physical connectivity via:
- PMGSY
- Industrial corridors
- Dedicated freight corridors
- Bharatmala
- Sagarmala
- Jal Marg vikas
- UDAN schemes
- The Gaon, Garib and Kisan are at the Centre of all our efforts
- Railways will require investment of Rs 50 lakh crore from 2018-30 * Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure
- The unambiguous mandate by the people in the recent election has set the ball rolling for the New India
- RashtriyaSwachhta Kendra to be inaugurated at Raj Ghat on 2nd Oct
- The people of India have validated their two goals for our country’s future: national security and economic growth
- ‘ Yakeenho to koi raastaniklatahaihawakiawt(protection) bhi le karchiraghjaltahai’
- It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years
- We can very well reach $5 trillion in the next few years
- Plans to reach 5 trillion USD economy
- Heavy investment in infrastructure
- Digital Economy
- Job creation
- India with strident commitment to fiscal consolidation
- Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be MazboothDeshKeLiyeMazboothNagarik
- Government lays out 10-point vision for the New India
- India will become $3 trillion economy this year. We need to continue to take many structural reforms to achieve $5 trillion economic goal
- Connectivity is the lifeline of the economy
- The government has given a massive push to all forms of physical connectivity via:
Between 2014 and 2019, we provided rejuvenated centre-state dynamic, cooperative federalism, GST Council and a strident commitment to fiscal discipline; set the ball rolling for New India
- To sensitise people of positive Gandhian values, a ‘Gandhipedia‘ is being developed by National Council for Science Museums
- A new series of coins including for Rs 20 will be made available for public use shortly
- A new series of coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired were released by the PM on 7th March 2019. These coins will be made available for public use shortly
- Duty and Taxation
- Exempts ‘basic duty’ on defence imports
- Excise duty on fuel hiked by 1 rupee
- Proposes increase in custom duty on gold and other products
- Custom duty on gold increased by 2%,
- Fiscal deficit in FY19 at 3.3% of the GDP
- No change in personal income tax rates
- TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account
- Companies having annual turnover of 400 crores, will now be under the bracket of 25%
- ‘Ease of living’ in Sitharaman’s Budget
- Rs 3,000 pension per month for informal sector workers
- Aadhaar card under 180 days for NRIs on arrival in India
- Govt to open embassies in countries where India doesn’t have a resident diplomatic mission as yet
- ‘Women empowerment’ in Sitharaman’s Budget
- NarituNarayani: Women SHG Interest Subvention Programme to be expanded to all districts in India
- Rs 1 lakh loan to be provided for SHG women members
- Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility
Avtar Madan
Himanshu
Shree Lahiri
