This year’s budget is an extremely moderate with no major shifts in the earlier stance. In realistic terms the budget looks more like a formality with not much initiative on providing big boost to the industry that was expected by the industry leaders.
Zero custom duty on import of plant and machinery for the semiconductor industry combined with the 15 percent investment allowance for investments of over Rs 100 crores in the plant and machinery is a welcome move to encourage semiconductor and other local manufacturing. This is definitely a good news for the electronics industry. The focus on the development of industrial corridors and ports will also strengthen the Indian manufacturing industry.
The Rs 65,000 Cr allocation for education with specific emphasis on Science and Technology, support to incubation projects, and roadmap for skill building across youth, when combined are a powerful set of moves designed to nurture innovation without losing the holistic view.
The finance minister’s proposal for postponement of the General Anti Avoidance Rule (GAAR) and inclusion of an external member in the approving panel ‘a three-member panel that will be headed by a retired or serving High Court judge and will include an income tax official’ is a welcome move and will help in boosting the FDI by building investor confidence in the country.
