Amidst high Inflation and extending sops to the Indian industry for growth, Mr. Mukherjee as a difficult task on Hand. We believe that Mr. P. Chaidmabram, the seasoned Finance Minister is the best-fit for this job with his vision for reforms and transformation. Lesser Mortals, we the democratic voters of India have to be content with High Level Politics and with this the Indian Industry has presented its wish list to the FM. We cover industry-wise wish list in 2 posts.
Automobile – Continuation of stimulus package, Remove differential excise duty between small and large cars and Extension of accelerated depreciation benefits for CV.
Banking – Remove the ceiling of 7.5% of total income allowed as deduction, Prepayment period to be extended further from December 31, 2009, Increase the FDI limit in Insurance sector from 26% to 49%, Tax exemption on Infrastructure Financing and Increase in FII/FDI limit in PSU Banks from 20% to 49%.
Capital Goods – 10% customs duty on import of power plant equipment for both, the projects awarded through the international competitive bidding route and mega power plants, Reduction in customs duty on compressors From 7.5% to 5%, Setting up India infrastructure debt fund of Rs 500 bn and higher allocation For urban development including metro rail and buses.
Cement – No increase in excise duty, 55% abatement on excise duty as against no abatement allowed currently and Abolish import duty on coal and pet coke as against 5% currently.
Construction – Faster land acquisition; Increased private participation; Higher grant for select projects; Higher budgetary allocation for Bharat Nirman and NHDP. Higher fund allocation through Accelerated Irrigation Benefit Programme; Approval of national project status to select projects. Higher fund allocation through JNNURM. Enable easier lending to the infrastructure sector, Abolish MAT during the period of availment of Section 80IA and Extend the 10 year income tax holiday by another 15 years
FMCG – Speedy, effective and transparent GST rollout, Focus on rural sector through employment generation and infrastructure spending and Continue the economic stimulus package.
Hotels – Hotel industry should be brought on par with the other infrastructure industries and extend to all categories of hotels across the country.