India Now - page 18

S PEC I AL R E POR T
B U D G E T
16
FEBRUARY-MARCH 2015
|
Composite caps for foreign investors will do away with the distinc-
tion between different types of foreign investments into the country
and make India a more attractive destination for foreign investors.
“This will facilitate further inflow of foreign funds. In many cases,
the FII limit has been exhausted, whereas FDI limit was either partly
or fully unutilised. Combining the two limits will definitely facilitate
incremental inflows,” feels Sudip. The decision to allow foreign
investments in alternate investment funds will enhance inward
investment by foreign investors. The Micro Units Development Refi-
nance Agency (MUDRA) Bank ( launched in April by Prime Minis-
ter) will refinance micro-finance institutions, with a priority to SC/ST
enterprises through Pradhan Mantri Mudra Yojana. “Such steps will
further improve the ecosystem for startups by giving access to the
much required finance,” Sachin said.
Chadrashekhar feels, “The enhancement of domestic transfer
pricing applicability threshold from
`
5 crore to
`
20 crore, central
excise and service tax registration in two working days through
online submissions, including digitally signed invoices will ease
business processes; reducing the rate of income tax on royalty
and fees for technical services from 25 per cent to 10 per cent
will increase technology adoption in the country through lower
costs; and authorising CBDT to issue clarifications on the foreign
tax credit will help the industry attain global competitiveness.”
Sudip concludes, “Gold deposit scheme, inclusion of NBFCs
above a certain size under SARFAESI Act, merger of FMC
with Sebi and abolition of wealth tax are positive and long
awaited steps. Enabling provision for issuance of tax free bonds
for rail, irrigation and road sectors addresses the need of the
hour. Postponing GAR, favourable clarifications for REIT, AIF,
etc., should help the market and economy.”
Impetus to Infrastructure & Agriculture
Infrastructure sector received a shot through enhanced outlays for
roads and railways by
`
14,031 crore and
`
10,050 crore respectively.
The decision to establish a National Investment and Infrastructure
Fund (NIIF) will help raise debt and ensure an annual flow of
`
20,000 crore into it. Tax-free infrastructure bonds for projects in
rail, road and irrigation sectors will all boost the infrastucture sector
in the country. The plan to construct six crore toilets under
Swachh
Bharat Abhiyan
is set to lend stimulus to the infrastructure sector.
“Setting up of initiatives like Self-Employment Talent Utilisation
(SETU), a techno-financial and incubation scheme, and the Atal
Innovation Mission (AIM) will help promote innovation across
the industry,” remarks Chandrashekhar. The government’s call
to corporatise ports will attract private investment and leverage
the huge land resources lying unused with them. The proposed
‘plug-and-play’ model for big-ticket infrastructure projects such as
power plants, airports and roads, will further boost infrastructure
development with the entry of private players.
The agriculture sector has received a major boost with initiatives
like the Soil Health Card Scheme, the
`
5,300 crore boost for micro-
irrigation, watershed development and the Pradhan Mantri Krishi
Sinchai Yojana, and agricultural credit for small and marginal
farmers via separate allocations, etc. All the various initiatives will
help pave the way for sustainable farming practices. “With soil
health card, farmers will use the right proportion of fertilisers which
will help in increasing yield, allocation of
`
5,300 crore to support
micro-irrigation will result in additional area under irrigation from
the same amount of water, and increase in farm credit target to
`
8.5
lakh crore will reduce dependence on private lenders who charge
very high interest rates from farmers,” comments M K Dhanuka,
Managing Director, Dhanuka Agritech Limited.
The fine print of the Budget indicates its pro growth agenda.
With its commitment to reforms in key sectors, the government is
ensuring that India’s growth momentum continues uninterrupted.
For global investors and business community across the world, this
Budget has demonstrated India’s seriousness to emerge as a leading
investing destination.
(Based on interviews & secondary research)
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Rail Budget: Reforms on
Track
1...,8,9,10,11,12,13,14,15,16,17 19,20,21,22,23,24,25,26,27,28,...68
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