The economy has moved on a high growth path. Economic growth pegged at 7.2-7.5% for H2 FY18. Indian economy size of $2.5 trillion is the 7th largest in the world and expected to be 5th largest economy soon.
AGRICULTURE & RURAL SECTOR
Farmers to get a minimum of 50%over their cost of production
Developing and upgrading 22000 rural haats into Gramin Agriculture markets.
Agri – Market infra Fund Rs. 2000 Crores.
Allocation doubled for food processing industries.
Allocation of Rs. 11 lakh to be provided as a credit to agriculture.
Infrastructure Expenditure gets a boost from Rs. 4.94 Lakhs Crores to 5.97 lakh Crores
To expand airport capacity more than 5 times under NABH Nirman to handle more than a billion trips a year.
Two defence industrial production corridors to be developed. Industry-friendly defence production policy to promote domestic production.
National logistic portal to be developed as a single window marketplace.
Every industrial enterprise to get a unique ID
Revitalizing Infrastructure and System in Education (RISE) with an investment of Rs 1 Lakh Crores in 4 years
Prime Minister Research Fellow to promote 1000 B.Tech students for doing Ph.Ds. in IITs and IISc
18000 Km of railway doubling work and 5000 Km of gauge conversion for capacity conversion
Bengaluru to get a suburban network of 160 Kms with an estimated cost of Rs. 17,000 crores
125 lakh people have adopted the BHIM app so far. The Government will launch two new schemes to promote the usage of BHIM
A Mission will be set up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards
Banks have targeted to introduce an additional 10 lakh new POS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based POS by September 2017
PRUDENT FISCAL MANAGEMENT
Stepped up allocation for Capital expenditure by 10% over the previous year revised estimates
Fiscal deficit for 2018-19 is targeted at 3.3% of GDP and the Government remains committed to achieve 3.1% in the following year
Revenue Deficit of 2.6% in RE 2017-18 stands reduced to 2.2% for next
Central Government debt to GDP ratio to be brought down to 40%.
Total allocation for Railways is Rs. 1.48 lakhs Crores
HIGHLIGHTS FOR INDUSTRY
Union Budget for 2018 - 2019 has been special for us, as the anomaly which was caused by a notification last June in relation to Customs Duty reduction of 2.5 % on three critical components of metalworking machine tools, has now been rectified by Government of India.
Customs Duty reduction of 2.5 % on three critical components of metalworking machine tools (CNC systems, ball screws and linear motion guides) – has been re-extended to all categories of CNC metalworking machine tools [under HS codes : 8456 to 8463].
Budgetary allocation of Rs. 120 crores for Scheme for “Enhancement of Competitiveness in the Indian Capital Goods Sector”.
Capital expenditure outlay of Rs. 650 crores towards ‘machinery & plant’ for the Ministry of Railways.
Revenue expenditure outlay of Rs. 475 crores towards ‘renewal and replacement’ for Defence Ordnance Factories, Ministry of Defence.
Revenue expenditure outlay of Rs. 58 crores towards ‘maintenance – machinery & equipment’ for Defence Ordnance Factories, Ministry of Defence.
Capital expenditure outlay of Rs. 803.68 crores for Defence Ordnance Services, Ministry of Defence.
Capital expenditure outlay of Rs. 80 crores towards ‘Trade Infrastructure for Export Schemes’ (TIES) for the Department of Commerce, Ministry of Commerce and Industry. TIES includes among others, setting up of trade promotion centres.
As part of Budget speech, reduction in ‘corporate tax rate’ to 25 % for SME companies with a turnover of Rs. 250 crores and less.