Wednesday, July 15, 2015

INDIA WITH A NEW HOPE

The Union Budget have brought out very important policy statement on behalf of the Government of
India, thereby committing the following :

  • A new Direct Tax Code will be brought out to simplify the income tax legislation.
  • Goods and Service Tax will be implemented on urgent basis after addressing the concern of the State Governments and ensuring fair treatment to them.
  • Black money expansion shall be contained by using Information Technology and modern methods, while avoiding intrusive approach thereby indicating survey and searches only exceptionally.
  • The government has committed itself to ensure that retrospective amendments are brought only in very exceptional circumstances and not with a view to defeat the court's judgments. A more stable and predictable tax legal framework to improve investor confidence and spur growth.
  • To target sustained growth of GDP at 7 to 8% or above, to be achieved within next 3 to 4 years. The growth commitment is not only for business and industry but also empowering the needy and poor. "SABKA SAATH SABKA VIKAS".
  • Expenditure: The government has committed to review overall subsidy regime targeting the same only to marginalized and poor. The government expenditure has to be cut down significantly.
  • Tax laws to be clearer and complexities to be withdrawn based on recommendation of a high level committee.
  • The transfer pricing laws have also been relaxed indicating fairness.
  • Public Sector Banks: Public Sector Banks will retain government majority and will be capitalized by infusing Rs. 2.4 lakh crore by 2018.
  • New Bank licensing policy to be brought out on tap Universal banks and small specialized banks.
  • PSU Investment: Public Sector undertakings will invest Rs. 2.48 lakh crore in current year to spur growth.
  • 100 smart cities plan to be given shape.
  • Power : 24 x 7 uninterrupted power supply as a committed target
  • Roads: Comprehensive plan to upgrade Roads and build new Roads to all villages.
  • Agriculture: A new green revolution and to achieve at least 4% sustained growth by transforming methods, seeds and irrigation.
  • SEZ scheme to modify, to bring back investors interest.
  • PPP model to be revised to make private sector and government partnership more effective and efficient.
The aforesaid changes are only listed out of so many more commitments and plans of the Government. India is poised to grow and government commitment to revive investment climate will be crucial.

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