New Delhi: Prime Minister’s last budget Narendra ModiAhead of the national elections, the administration tried to strike a chord with key voting groups such as farmers and the poor while maintaining fiscal prudence.
Finance Minister Nirmala Sitharaman on Thursday announced measures to boost tourism, housing and renewable energy adoption in her interim Budget, but proposed spending on roads, ports and airports in the world’s fastest-growing major economy fell short of expectations. . His plan to reduce market borrowing caused bonds to rise while stocks were lower.
“The next five years will be a time of unprecedented growth and golden moments to realize the dream of a developed India by 2047,” he said.
The full budget will be presented by the new government after the elections in April and May. Modi is in a strong position to extend his decade in power as his popularity continues to surge after victories in some recent state elections and the inauguration of a controversial Hindu temple.
Here’s a look at some of the winners and losers of the interim budget:
Winners
Agriculture
India plans to promote private and public investment in post-harvest activities, including modern storage and supply chains, besides promoting self-reliance on oilseeds. It is planning a comprehensive program for the development of dairy farmers and will also increase spending on fisheries to boost the productivity of the sector.
middle class
The government has increased the tax rates for individuals to provide more money in the hands of taxpayers and boost consumption. “Financial assistance to the middle class living in rented houses, slums or unauthorized colonies to buy or build their own houses is a welcome step as ‘housing for all’ is an important indicator of economic progress and a developed country,” Neeraj. Bansal, Co, said. -Principal and Chief Operating Officer, India Global, KPMG.
Tourism
The government will encourage states to develop tourism centers and market them globally. It is also planning long term interest free loans to states for tourism.
Renewable energy
While the government announced Viability Gap Financing for harnessing wind energy potential for an initial capacity of 1 GW, it fell short of expectations. The industry was looking for a subsidy program to encourage the adoption of renewable energy in view of India’s plan to become net carbon zero by 2070. The industry expected more details on how the programs would be funded.
lost
basic infrastructure
Infrastructure outlay was increased marginally by 11.1% in the budget, taking the proposed expenditure in the next financial year to Rs 11.1 trillion. “To address the challenges of declining infrastructure, India should consider further increasing investment,” said Pradeep Gupta, vice-chairman of Anand Rathi Group.
electric vehicles
The government plans to “expand and strengthen the electric vehicle ecosystem” through measures including developing public charging infra and widespread adoption of electric public transport. However, it did not extend the $1.2 billion subsidy program that expires in March.
Jewelers
Jewelery stocks including Tata Group’s Titan Co, Kalyan Jewelers India Ltd and Senco Gold fell on Thursday as the government left the import tax on gold unchanged at a high of 15%. The industry has repeatedly sought tax reduction to stem illicit flows into the country and aid demand as lower duty would make the precious metal cheaper for consumers. India imports almost all the gold it consumes.
disinvestment
India lowered its disinvestment target for the current fiscal year after failing to complete some high-ticket stake sales. It expects to get Rs 300 billion from disinvestment by March 2024, down from the earlier target of Rs 510 billion. The target for the next year has been set at Rs 500 billion.
Finance Minister Nirmala Sitharaman on Thursday announced measures to boost tourism, housing and renewable energy adoption in her interim Budget, but proposed spending on roads, ports and airports in the world’s fastest-growing major economy fell short of expectations. . His plan to reduce market borrowing caused bonds to rise while stocks were lower.
“The next five years will be a time of unprecedented growth and golden moments to realize the dream of a developed India by 2047,” he said.
The full budget will be presented by the new government after the elections in April and May. Modi is in a strong position to extend his decade in power as his popularity continues to surge after victories in some recent state elections and the inauguration of a controversial Hindu temple.
Here’s a look at some of the winners and losers of the interim budget:
Winners
Agriculture
India plans to promote private and public investment in post-harvest activities, including modern storage and supply chains, besides promoting self-reliance on oilseeds. It is planning a comprehensive program for the development of dairy farmers and will also increase spending on fisheries to boost the productivity of the sector.
middle class
The government has increased the tax rates for individuals to provide more money in the hands of taxpayers and boost consumption. “Financial assistance to the middle class living in rented houses, slums or unauthorized colonies to buy or build their own houses is a welcome step as ‘housing for all’ is an important indicator of economic progress and a developed country,” Neeraj. Bansal, Co, said. -Principal and Chief Operating Officer, India Global, KPMG.
Tourism
The government will encourage states to develop tourism centers and market them globally. It is also planning long term interest free loans to states for tourism.
Renewable energy
While the government announced Viability Gap Financing for harnessing wind energy potential for an initial capacity of 1 GW, it fell short of expectations. The industry was looking for a subsidy program to encourage the adoption of renewable energy in view of India’s plan to become net carbon zero by 2070. The industry expected more details on how the programs would be funded.
lost
basic infrastructure
Infrastructure outlay was increased marginally by 11.1% in the budget, taking the proposed expenditure in the next financial year to Rs 11.1 trillion. “To address the challenges of declining infrastructure, India should consider further increasing investment,” said Pradeep Gupta, vice-chairman of Anand Rathi Group.
electric vehicles
The government plans to “expand and strengthen the electric vehicle ecosystem” through measures including developing public charging infra and widespread adoption of electric public transport. However, it did not extend the $1.2 billion subsidy program that expires in March.
Jewelers
Jewelery stocks including Tata Group’s Titan Co, Kalyan Jewelers India Ltd and Senco Gold fell on Thursday as the government left the import tax on gold unchanged at a high of 15%. The industry has repeatedly sought tax reduction to stem illicit flows into the country and aid demand as lower duty would make the precious metal cheaper for consumers. India imports almost all the gold it consumes.
disinvestment
India lowered its disinvestment target for the current fiscal year after failing to complete some high-ticket stake sales. It expects to get Rs 300 billion from disinvestment by March 2024, down from the earlier target of Rs 510 billion. The target for the next year has been set at Rs 500 billion.