Foreign investment is imperative: Budget 2013-14

Doing business in India must be seen as easy & mutually beneficial: FM

February 28, 2013 12:48 IST | India Infoline News Service
Finance Minister P. Chidambaram on Thursday presented to parliament the budget for the 2013-14 financial year beginning in April. The highlights of the budget are below
Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities
Rs. 5 billion would be allocated for environmental issues faced by textile sector
Concessional 6% interest on loans to weavers.
SEBI will simplify procedures for entry of foreign investors
SIDBI’s re-financing facility to MSMEs to be Rs. 100 billion
Dabhol LNG—5 million tons—import terminal to be operated at full capacity in 2013-14
Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to increase to 185 million tonnes in 2016-17,
Government will provide Rs. 140 billion capital infusion in public-sector banks in 2013-14
Oil and gas exploration policy will be restructured—from profit sharing to revenue sharing
Natural gas pricing policy will be reworked and uncertainty removed
Inflation-indexed bonds will be announced on 1 June
Govt to construct power transmission system from Srinagar to Leh—project cost Rs. 18.40 billion, Rs. 2.26 billion provided
Rs 24 billion for upgradation of textile technology
Two new ports to be set up in West Bengal and Andhra Pradesh
A company investing Rs. 1 billion or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15% investment deduction allowance apart from depreciation
To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries.
Fresh push for Bangalore-Chennai industrial corridor. Corridor to be developed in co-operation with the Japanese: FM
DIPP and Japan’s JICA preparing plan for Chennai-Bengaluru Industrial corridor
Power sector gets approval; States encouraged to restructure financial systems to improve sector as a whole and sign MoUs for the same effect.
Rs 250 billion to be raised through tax free bonds: Chidambaram
Government seems to betting heavily on a large FDI influx to help with the deficient. "We will use innovative and new financial methods to increase investment in infrastructure," Finance Minister said.
New measures have been announced to increase availability and amount of debts available for infrastructure projects.
The revised expenditure in 12th Five Year Plan targets 96% of Budget estimate for FY13—which comes to Rs. 14,30,825 crore. In 2013-14, the budget estimate is Rs 16,65,297 crore.
Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55,322 crore: FM.
Headline WPI inflation brought down to 7% and core inflation to 4.2%: FM
Food inflation is worrying: FM.
24.3 % hike in expenditure for health care both rural and urban health mission.
12.5 % hike in Scheduled caste and Scheduled tribe sub-plans
Average economic growth rate in 11th Plan period is 8%, highest ever in any Plan period.
Foreign investment is imperative
Current account deficit high due to dependence on oil, high gold imports
Need $75billion to bridge CAD
Present economic space is constrained by economic climate and tight monetary policy

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