This document provides a summary of a presentation on the Indian budget for 2019. It discusses key achievements and initiatives of the Modi government, highlights from the Economic Survey and budget, an analysis of the budget, and its potential impacts on various industries. The budget aims to reform, perform and transform the Indian economy to become a $5 trillion economy by 2024-25 through initiatives like increased infrastructure spending, tax benefits, and promoting sectors like digital, renewable energy, startups, and manufacturing. Expert opinions praise the focus on connectivity and infrastructure but some criticize it as lackluster and not providing a clear direction.
3. Modi 1.0 achievements
An overview of Economic Survey 2019
Highlights of Budget 2019
Budget Analysis (Good, Bad, ugly)
Budget at Glance ( Rupee comes from and
goes to)
Impact of Corporate India
Expert opinion
4. Macro Economic Stability
Cooperative Federalism initiated
Infrastructure
Framework for corporate sector survive
Pathway for Trickle down
5. Macro Economic Stability :
i) 6th Largest Economy
ii) Low level of Inflation
iii) Sufficient Forex Reserves,
iv) Positive FDI inflows
v)Economy grows to $2.75 trillion despite
slowdown global economy
Cooperative Federalism initiated :
i) State share from taxes increased from 32 to 42%
ii) GST Council
6. Infrastructure :
i). Rural Electrification
ii). National Highways
Framework for corporate sector survive :
IBC : Insolvency and Bankruptcy Code
Pathway for Trickle down :
i) Aadhhar
ii). PMJDY
iii).DBT
7. Uncertainty across the world
To become $5 trillion mark by FY2024- 25, the
survey said.
India will need to grow at 8% per year to reach the
target
Special privileges for top taxpayers
Road construction in kms grew at 30 kms per day in
2018-19.
The overall Index of Eight Core Industries registered a
growth rate of 4.3% 2018-19
8. Pradhan Mantri Ujjwala Yojana (PMUY) ; More than
7.189 crore LPG connections
Overall tele-density is 90.10%, Rural tele-density is
57.50% and Urban tele-density is 159.66% at the end
of March 2019
As electric vehicles represent the next generation in
sustainable mobility, India must emphasize on them.
(electric cars is only 0.06 per cent when compared to
2 per cent in China and 39 per cent in Norway)
The Unemployment Rate was 8.9% with 8.5% in rural
areas and 9.6% in urban areas.
NPAs as a percentage decreased from 11.5% to 10.1%
between Mar 2018 & Dec 2018
9. Indirect taxes fell short of budget estimates by about
16 per cent.
FDI inflows grew by 14.2% in 2018-19 ($ 64
billion)
India’s foreign exchange reserves placed at US$
422.2 billion, as on 14th June 2019
Growth in service exports and imports in US dollar
terms declined to 5.5% and 6.7% respectively in
2018-19
10. Doubling famers income by 2022
Reform, Perform and Transform
Encourage MSMEs as a growth engines
To become commercially viable Space technologies
hub
Disinvestment : the target of 1,05,000 crore
New Jalshakti Mantralaya
Gandhipedia to sensitivize society
11. Investment driven economy (Consumption ,
Demand, Employment, Growth)
Housing for all
Promote PPP mode of investments
Encourage External source of financing
Relaxation of FDI and FPI Norms
TV channel to be launched for promoting startups
and to help matchmaking for funds.
New national educational policy hopes to transform
Indian education into one of the best in the world,
with focus on bringing in foreign students.
12. ₹50 lakh crores proposed for Railway
infrastructure.
Infrastructure Program with 100 Lakh crore for the
next 5 years
Encourage corporate India Inc operation by
providing 25 % tax rate ( < 400 crore turnover)
Encourage Equity culture Indian investors ( public
shareholding limit extended to 35 from 25%)
Encourage Digitalization and discourage cash
transactions ( TDS @2% if withdrawals >1crore per
annum)
13. Fastest growing major economy in the world : 6.8%
3 trillion Economy by 2019-20
5 trillion Economy by 2024-25
New social Stock Exchange
Borrowing funds :
Debt to GDP ratio reaches to 48% in 2018-19
Sovereign external debt to GDP ratio amongst the
lowest globally at lessthan5%.
PAN and Aadhaar will become interchangeable. You
can use your Aadhaar number to file your I-T
Returns soon.
14. Super rich tax , those who have a range of ₹2-5 crore
and ₹5 crore-and-above brackets will see increase in
effective tax rate by 3% and 7%, respectively.
GST rate on electric vehicles proposed to be lowered to
5%.
Additional income tax deduction of ₹1.5 lakh on
interest on loans taken to purchase electric vehicles.
Additional deduction of ₹1.5 lakh on loans up to March
31 2020 for buying affordable houses, giving ₹ 7 lakh
benefit to home buyers.
Proposal to provide Aadhaar cards for NRIs with Indian
passports, after their arrival in India, with no waiting
period.
₹20 coin coming up.
15. Excise duty on fuel hiked by ₹1.
To resolve the angel tax issue,
TDS of 2% on cash withdrawals exceeding ₹1 crore
in a year from bank accounts, to discourage
business payments in cash.
Period of exemption for capital gains arising from
sale of house for investment in startups to be
extended to March 31, 2021.
₹70,000 crore in recapitalization for public sector
banks.
₹1.05 lakh crore disinvestment target for the year.
16. Aadhaar-PAN interchangeability
EVs on a faster road
One nation, one card for seamless mobility
Rs 70,000 crore for banks
NRIs to get Aadhar on arrival
Breather on Angel Tax
Reform of rental housing
17. 3,000 pension per month for informal sector
workers Around 30 lakh workers
Local sourcing norms to be eased for single brand
retail
To merge NRI portfolio with FPI route
Zero-Budget farming
A new education policy
Efforts will be made to bring in foreign students
under a Study in India plan
Promote research in the country.
18. The Bad:
Corporate Tax
Defence
Jobs
The Ugly:
Tax dampener Standard deduction and TDS
threshold didn't find a mention in Sitharaman's budget
LTCG remains a pain in the neck
Super-rich have bad news
Fuel bill
Raiding the RBI
19. Rupee Comes from :
Customs
4%
Borrowings
and Other
Liabilities
20%
Corporate Tax
21%
GST
19%Income
Tax
16%
Non debt
Capital
Receipts
3%
Non Tax
Revenue
9%
Union Excise
Duties
8%
20. Rupee Goes to :
Central Sector
Schemes
13% Centrally
Sponsored
Schemes
9%Defence
9%
Finance
Comm. &
Transfers
7%
Interest
Payments
18%
Other
Expenditure
8%
Pensions
5%
States’ Share of
taxes & Duties
23%
Subsidies
8%
21. Financial Services
Automotive
Defence
Real Estate
Startup
Technology
Chemical
Telecom
22. Financial Markets and Financial services :
Action plan to deepen corporate debt market
Roadmap for making india a hub for Aircraft
financing and leasing activities
Investments made by FPIs to be allowed in listed debt
securities by REITs, InvITs
Regulatory authority for housing finance to move
back to RBI from NHB
Govt. Allow AA rated bonds to be used as collateral in
tri party repo market
Public shareholding limit increased from 25 to 35%
Existing KYC norms for foreign portfolio investors to
be rationalised
23. Automotive industry :
Emphasis on Electric vehicles
Tax exemption worth of 1.5 lakh interest paid on loan
taken to purchase an electric vehicle
Incentives to setup mega manufacturing plants for
lithium batteries
Suggestion to GST to reduce GST for electric vehicles
from 12 to 5% for electric vehicles
Basic customs duty will be increased on certain auto
parts to promote make in india initiative
Customs duty exemption on import of electric vehicle
parts
Increasing the fuel cost and encouraging the adoption of
electric vehicles will adversely affect the traditional auto
companies
24. Defence:
Govt .emphasixed on an immediate requirements to
moderanize and upgrade the sector.
Secure national borders and reduce defence imports
Customs duty exemption to military equipments and
parts which are not produced in india and import by
MOD
Real Estate :
Encourage REITs for funding sources
Additional deduction of 1.5 lakhs ; interest on
housing loan
25. FMCG:
Consumption driven strategy to boost the economy
Local source norms for single brand retail sector to
be relaxed
Pension benefit to be extended to 3 crore retail
traders and small shop keepers with annual
turnover of Rs.1.5 crore
26. Startups:
According to a recent NASSCOM-Zinnov report,
India has emerged as the third biggest startup hub in
the world and received a total funding of $4.3 billion
in 2018
Indian startups have created over 40,000 jobs during
FY2018-19 and many are also expanding into foreign
markets
Indian startups got some relief from Angel Tax
The government has pushed for the use of digital
technologies through initiatives such as National
Programme on Artificial Intelligence (AI) and the
establishment of nine centres of technological
excellence
27. Technology:
Development of digital economy
Data hub:
First indigenously developed payment ecosystem
for Transportation
Dedicated online portal for providing loans to
MSMEs
20 technology business incubators to facilitate
development of skilled entrepreneurs in agro rural
industries
Focus on new age skills such as AI, IOTs, Bigdata,
3D Printing , Virtual reality and robotics
28. Chemical :
Double farmer Income by 2022 and
Announcement of 10,000 Farmer Producer
Organization : Boost to Agro chemical companies
29. Infrastructure:
Invest 100 lakh crore for the next 5 years
Road : Bharatmala phase 2 to be launched. State
road networks will be developed
Air : World’s third largest domestic aviation market
UDAAN: Number of Operational Airports crossed 100
Shipping and Inland waterways :
Jal Marg Vikas project and Sagarmala initiatives
Rail: PPP in railways infra development
657 km Metro rail network already operational.
30. National Common Mobility Card launched
PPP of Indian Railways to invest 50 lakh crore
Affordable housing under PMAY
Vision for connectivity of Infrastructure
Gas Grid-water grid-Power grid-Inland waterways
–Regional Airports
Propose to start Credit Gurantee Enhancement
corporation
Action plan for deepen long term bond market
Govt to promote Maint
31. Telecom :
Special scheme to be introduced to invite global
companies to set up mega manufacturing plants in
advanced tech areas such as semi conductor fabricators
Exempted for import customs duty on printed circuit
board assembly, chargers, Camera modules of cellular
mobile phones
Increase in the rate of basic customs duty on optic fibres
from 10 to 15%
The government expects a 28% increase in non-auction
revenue at Rs 50,519.8 crore in the fiscal year 2019-20
from the telecom sector against Rs 39,245 crore earned
in the previous fiscal year
32. Tax benefits to international finance service centre
(IFSC) near Gujarat International Finance Tec-City
(Gift-City), Ahmedabad.
A major benefit to businesses operating in the GIFT
City at Gandhinagar is in the form of doubling the
tax holiday to 10 years,
Exemption from dividend distribution tax (DDT),
Exemptions on capital gain to alternate investment
funds (AIFs) and interest payment on loans taken
from non-residents
33. Currently, an IFSC unit is allowed deduction of 100
per cent of profits for the first five consecutive years
and 50 per cent for the next five consecutive years
from the year of commencement.
Sitharaman proposed to hike this to a 100 per cent
profit-linked deduction under the Section 80 LA in
any 10-year block within a period of 15 years from
the date of commencement.
34. Shyamal Mukherjee, chairman - PwC India
“Re-iterates the government’s thrust on minimum government
and maximum governance. Ramping up infrastructure
investments to ₹20 lakh crores a year would help India move
to the 8% growth trajectory”.
Amit Gupta, director, Deloitte
“The Budget places a holistic focus on demand for
connectivity across rural and urban markets”.
Motilal Vora , Congress Leader:
“ An utterly lackluster, non descript, uninspiring and
directionless budget”
35. “The Road map for sustainable India in meeting
aspirations of young India”
