Daily News and Analysis

Life After Budget: No Tax Cuts, But Bags Full for Make in India

Higher carry forward of MAT credit and rectification of inverted duty structures in certain sectors will benefit local manufacturers in India.

Par Deepak Jain and Sudarshan Sampathkumar

First published on février 03, 2017
min


This article originally appeared on Daily News and Analysis. Finance minister Arun Jaitley’s Budget proposals seek to transform rural lives and energise the economy through enhanced government expenditure but doesn’t conform to the conventional expectations of the manufacturing sector—typically duty cuts and deductions. What it does, however, is creates demand and proposes a host of measures to propel manufacturing growth consistent with the government’s ‘Make in India’ vision. Boosting direct demand Halving tax rate for individuals with income of Rs 2.5—5 lakh per annum to 5%, will increase the disposable income of the middle class and boost demand. Besides, measures such as increasing target for agricultural credit to Rs 10 lakh crore and interest waivers for farmers will lead to higher rural incomes and improve demand for farm implements such as tractors, shredders and harvesters. Read the full article at Daily News and Analysis.

This article originally appeared on Daily News and Analysis.

Finance minister Arun Jaitley’s Budget proposals seek to transform rural lives and energise the economy through enhanced government expenditure but doesn’t conform to the conventional expectations of the manufacturing sector—typically duty cuts and deductions. What it does, however, is creates demand and proposes a host of measures to propel manufacturing growth consistent with the government’s ‘Make in India’ vision.

Boosting direct demand

Halving tax rate for individuals with income of Rs 2.5—5 lakh per annum to 5%, will increase the disposable income of the middle class and boost demand. Besides, measures such as increasing target for agricultural credit to Rs 10 lakh crore and interest waivers for farmers will lead to higher rural incomes and improve demand for farm implements such as tractors, shredders and harvesters.

Read the full article at Daily News and Analysis.