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Interim Budget 2014 -15 Highlights

UPA lead Government announced the Interim Budget a day before yesterday and the Finance Minister has played it very safe this time! No major tax cuts have been made, rather excise duty has been slashed making it easy for a person to buy an automobile vehicles or other consumer durables.

Since the last couple of years the Indian GDP has been hovering in 4.5% to 5.5% range. A positive news is that they plan to bring down the Current Account Defect (CAD) by 50% to 45 billion USD from 88 billion USD last year.

Major Highlights of Interim Budget:

  • GDP growth in Q3, Q4 FY14 seen at 5.2%; FY14: 4.9%
  • Agriculture GDP growth is estimated at 4.6%
  • FY 15 Agriculture GDP at 4.6% (estimated)
  • GDP fell to 4.4% from 7.9% in nine quarters
  • Govt sees investment rate at 34.8%; saving rate at 30.1%
  • USD 15 billion will be added to Forex reserves (this year)
  • Excise duty on consumer durables slashed from 12% to 10%
  • Excise duty to be cut by 2% for Capital Goods & Consumer Durables
  • Reduction in excise duty for auto sector
  • Excise duty reduced for small cars from 12% to 8%
  • Excise duty reduced for SUVs from 30% to 24%
  • Excise duties on bikes/2 wheelers down to 8%
  • 10 crore Jobs will be created in next 10 years through industrial corridors
  • Power sector to add 50,000 MW
  • Another Rs 100 cr for Nirbhaya fund for women’s safety
  • Rs 200 crore Venture Fund with IFCI
  • 57 crore Aadhar cards given out (last fiscal)
  • Exports are pegged to grow to $326 bn; up 6.4%
  • Cabinet panel cleared 296 projects by end of January
  • 19 oil blocks were given out for exploration and 7 new airports are under construction

Central Planned Expenditure:

Interim Budget 2014 - 15

Sectors Majorly Impacted:

Automobile sector as there was an excise duty cut making automobiles a bit cheaper to the consumers now. With Automobile becoming a bit cheaper – will give a boost to banking sector as well. Not much was seen for housing sector and a lit in infra segment majorly related to the construction of 7 airports and solar power stations. A 7% growth in exports in projected.

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