KEY TAKEAWAYS BUDGET 2019-20
1SECTORAL UPDATES

Automotive

  • Deduction of up to INR 1.5 lakh introduced for interest paid on loans taken to purchase an EV
  • Mega manufacturing plants for lithium batteries and solar PV cells to be incentivised
  • Government expenditure of INR 10,000 Cr for the next 3 years approved under the FAME 2 scheme 
  • GST reduced from 12% to 5% on EVs

Defence

  • Exemption from basic customs duty on military equipment and parts imported by the Ministry of Defence or the Armed Forces

Chemical

  •  Formation of 10,000 Farmer Producer Organizations announced, giving a boost to Agro-Chemical companies
  • Greenfield/Brownfield investments in India by lithium and silicon manufacturing companies to be encouraged 

Power 

  • One Nation One Grid - Power to be provided at affordable rates to the states 
  • Under the Uday Scheme, cross-subsidy surcharges, unwanted duties on open access sales and captive generation for industrial & other bulk power consumers have been eliminated 

Space 

  • New Space India Ltd. (NSIL), a PSE incorporated to tap into the benefits of the R&D carried out by ISRO 

Agriculture

  • Common Facility Centres to enable cluster-based development of traditional industries to be set up
  • 100 new clusters with a focus on bamboo, honey and khadi to be set up during 2019-20 

Technology

  • First indigenously developed payment ecosystem for transportation based on the National Common Mobility Card (NCMC) standards
  • 80 Livelihood Business Incubators and 20 Technology Business Incubators to be set up in 2019-20
  • Interchangeability of PAN and Aadhar to be implemented
  • Faceless E-assessment and E-invoicing system announced  

Consumer Products & Retail

  • The local sourcing norms in Single Brand Retail sector to be relaxed
2BOOSTING INFRASTRUCTURE
  • The Government plans to invest INR 100 lakh Cr over the next 5 years in the Infrastructure sector 
  • Regulatory roadmap to be laid down for making India a hub for aircraft financing and leasing activities
  • PPP Model to be introduced to unleash faster development and delivery of passenger freight services
  • Blueprints of gas grids, water grids, I-ways and regional airports will be made available
  • Increase in building of physical infrastructure through Pradhan Mantri Gram Sadak Yojana, Industrial and Freight Corridors Development Programmes, Bharatmala and Sagarmala Projects and UDAN Schemes 
  • Under the Jal Marg Vikas Scheme - navigational capacity of Ganga to be enhanced via multi-modal terminals
3BUCKS FOR THE BANKS
  • Credit Guarantee Enhancement Corporation to be set up in 2019-20
  • Action plan to deepen long term bond markets
  • Transfer of FII/FPI investment in debt securities issued by IDF-NBFCs to domestic investors will be permitted
  • Stock exchanges to allow AA rated bonds as collateral
  • Know Your Customer (KYC) norms for Foreign Portfolio Investors to be made more investor-friendly 
  • Fully automated GST refund module to be implemented
  • Bring electronic fundraising under the ambit of SEBI
  • Global Investors Meet to bring foreign pension, insurance and sovereign wealth fund players to India 
  • Proposal to increase FPI statutory limits in a company from 24% to sectoral foreign investment limit 
  • Proposal to provide public sector banks with INR 70,000 Cr to boost credit in the economy
  • Plan to open FDI in sectors such as aviation, media and insurance after multi-stakeholder examination
  • 100% FDI to be permitted for Insurance Intermediaries
  • To promote digital payments, TDS of 2% on cash withdrawals exceeding INR 1 Cr in a year from a bank account
4EMPOWERING MSMEs AND SOCIAL ENTERPRISES
  • Under Pradhan Mantri Karam Yogi Maan-dhan Scheme, 3 Cr retail traders and small shopkeepers with annual turnovers less than INR 1.5 Cr will be given pension benefits (enrolment to be simplified, requiring only Aadhaar, bank account and a self-declaration)
  • Allocation of INR 350 Cr for FY 2019-20 for 2% interest subvention on loans under Interest Subvention Scheme
  • Digital Payments Platform to eliminate delays in government payments
  • Social Stock Exchange for listing social enterprises and voluntary organisations
5START-UPS PROMOTION
  • Category-II Alternative Investment Funds - No scrutiny on funds raised by start-ups and on the valuation of shares issued to Category-II Alternative Investment Funds
  • Resolution of Angel tax issue – Start-ups and investors filing requisite declarations and providing information in their returns will not be subjected to any scrutiny with respect to the valuation of shares 
  • Minimum limit of shareholding or voting rights in eligible start-ups reduced from 50% to 25%
  • Exclusive TV channel to be launched for the promotion of start-ups and start-up related discussions 
  • Alternate composition scheme introduced for suppliers of services and mixed suppliers with an annual turnover up to INR 50 lakhs
  • Conditions for carrying forward and set-off of losses for eligible start-ups have been relaxed

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