NEW DELHI: India on Friday unveiled a budget aimed at boosting infrastructure and foreign investment, the first since the Bharatiya Janata Party led by Prime Minister Narendra Modi returned for a second term in power.
Here are the highlights of Finance Minister Nirmala Sitharaman’s budget for the 2019/20 fiscal year that began April 1:
INVESTMENT
-India will ease foreign direct investment restrictions in single-brand retail
-Proposes further opening up of FDI in aviation, insurance, media and animation sectors
-Important to get retail investors to invest in treasury bills
-Will allow foreign investors to buy debt of listed real estate investment trusts
-Government aiming for $14.5 bln target for disinvestment proceeds in FY20
TAXATION
-Will levy tax deduction at source of 2% for cash withdrawals exceeding $146,000 per year
-Proposes relief in securities transaction tax
BANKING
-State-owned banks proposed to be provided $10.2 bln of additional capital
-Will strengthen central bank’s authority over shadow banks
-There is a need to give tax parity to non-banking finance companies
ECONOMY
-India will become a $3trn economy in the current fiscal year, and a $5trn economy in the next few years
-India to invest heavily in infrastructure and job creation
-Government will raise part of its gross borrowing in external markets in foreign currencies
-Fiscal deficit for 2019/2020 seen at 3.3% of GDP - Bloomberg
INFRASTRUCTURE
-The government will upgrade 125,000 kilometres of roads over the next five years at a cost of $11.6 bln
-Railway infrastructure will need an investment of $72bln between 2018 and 2030
-Govt to encourage global companies to set up large manufacturing plants
-India will enter into aircraft financing and leasing activities
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