a chance to fly

A Chance to flyIndia’s EconomyBudget in question

A CHANCE TO FLY - INDIA'S ECONOMY (THE ECONOMIST) 2

AgendaIndia in RetrospectStrap on the enginesJumbo on the runwayIndia “Buy” once moreMaking your own breezeTaking the giant stepsUnion Budget Highlights 2015-16


India in Retrospect• India stands out among other emerging markets. China economy in slow motion Brazil in Stagflation Russia in recession South Africa – inefficiency and corruption • Re-learn from 1991 budget.


Strap on the engines• High growth potential. 50% population below 25years. Poor economy – more opportunities.• GDP per person (2013): India - $5500 China - $11900 Brazil - $15000• Better development, better days.• Move from agriculture to Industry & Service.


Jumbo on the runway• Land acquisitions from farmers Ex: second international airport in

Mumbai• Prime locations go to job creating projects.• Power shortage disrupts manufacture.• Auction of licenses a step forward.• Reforms in state and national labour laws.


India “Buy” once more• Story of Apollo Established in 1972 Limda factory, Vadodara, completed in 1991 Recent addition in 2009 1million passenger car tyres export to Europe Jumbo tyres for monster mining vehicles • Improved conditions:• Consumer-price inflation halved to 5.1%• Current account deficit shrunk• Rupee more stable than in years.• Growth in GDP by 7.5% year on year


Making your own breeze• Huge corruption scandals broke• Inflation fuelled by cheap money and fiscal stimulus• Auctioning replacement licensing• Indian banks flooded with dud loans• State banks require billions to cover the losses


Taking the giant steps• Single portals for new businesses• Push forward plans on national GST• Switch from subsidies to cash for needy• Issue banking licenses for mobile application• Remove the cap on firm size


Union Budget Highlights 2015-161. Tax rates unchanged; wealth tax abolished:

Income tax rates unchanged. Corporate tax reduced from 30% to 25% over next four years. Technical Services tax reduced to 10% from 25% GST in place of indirect tax system by 1 April, 2016

2. New tax exemptions let you save more: Increase in transportation (Rs. 800 to Rs. 1600). Health insurance premium reduction (Rs. 15,000 to Rs.

25,000). Senior citizens total exemption of up to Rs. 4,44,200.


Cont…3. Gold monetization: Make your gold pay:

Earn interest on gold deposit with the government or banks.

4. More jobs ahead with focus on skill development National Skills Mission for youth below 25 years of age Rs.15,000 million for skill development and entrepreneurship

5. More roads, better highways planned Rs.70,000 crores to the infrastructure sector


Cont…6. To make India the manufacturing hub of the world7. To achieve fiscal deficit of 3 per cent of GDP in

three years: 3.9 per cent in 2015-16, 3.5 per cent in 2016-17, and 3 per cent in 2017-188. Rs.1500 million allocated to create world class IT

hub9. Custom duty on raw materials to be reduced


Cont.…10.PPP model to be revisited and revitalized

Atal Innovation Mission announced for entrepreneurs and researchers

11.Rs.1500 million allocated for Research & Development

12.Rs.10,000 million for techno-financial development.

13.Rs.750 million for electric cars' production.


Cont.…14.IT based student financial aid scheme for higher

education15.Make in India for manufacturing of Defence equipment

Rs.2,467,270 million16.Rs.10,000-million fund announced for tech startups,

entrepreneurs17.Allocation for Renewable energy target for 2022:

100K MW in solar; 60K MW in wind; 10K MW in biomass; 5K MW in small hydro;

18.5 ultra-mega power projects, each of 4000MW


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PRESENTED BY:ABHILASH P A

G OWTH

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