In comparison to the less than ordinary and unimaginative budgetary proposals of yester years, Modi’s maiden budget comes as a welcome change from the norm. The proposals and reforms suggested in the Union Budget 2014-15 are ground breaking, specific with a good measure of thought & common sense and vastly catered for holistic growth of the economy. The challenging circumstances of a slowing economy, soaring energy prices, inflation, fiscal and current account deficits do not provide adequate leeway to maneuver and hit the path of high growth. Yet the Budget provides a comprehensive plan and directional footprint towards overcoming these hurdles to sustainable growth of 7-8% over the next few years along with providing macro economic stability, lowered inflation, realistic fiscal health targeting and a manageable current account deficit. The Finance Minister while presenting the budget takes cognizance of the fact that decisive action to fuel growth without populism is the need of the hour. And that resources for developmental expenditure cannot be raised at the cost of burdening the future generations with the legacy of debt. He goes on to emphasize the need to mobilize resources through both tax and non-tax revenues to feed the aspirational developmental expenditure. In order to achieve this objective the Modi Government has taken head on the various issues plaguing the Indian economy and come out with imaginative and yet very practical and implementable reforms and measures.

1. Union Budget
2014-15
10th July, 2014

2. Union Budget
2014-15
10th July, 2014
Budget 2014-15 Holistic Plan of Action
In comparison to the less than ordinary and unimaginative budgetary
proposals of yester years, Modi’s maiden budget comes as a welcome change
from the norm. The proposals and reforms suggested in the Union Budget
2014-15 are ground breaking, specific with a good measure of thought &
common sense and vastly catered for holistic growth of the economy.
The challenging circumstances of a slowing economy, soaring energy prices,
inflation, fiscal and current account deficits do not provide adequate leeway
to maneuver and hit the path of high growth. Yet the Budget provides a
comprehensive plan and directional footprint towards overcoming these
hurdles to sustainable growth of 7-8% over the next few years along with
providing macro economic stability, lowered inflation, realistic fiscal health
targeting and a manageable current account deficit.
Country is in no mood to suffer unemployment & apathetic governance

3. Union Budget
2014-15
10th July, 2014
Budget 2014-15 Holistic Plan of Action
The Finance Minister while presenting the budget takes cognizance of the fact
that decisive action to fuel growth without populism is the need of the hour.
And that resources for developmental expenditure cannot be raised at the
cost of burdening the future generations with the legacy of debt. He goes on
to emphasize the need to mobilize resources through both tax and non-tax
revenues to feed the aspirational developmental expenditure.
In order to achieve this objective the Modi Government has taken head on the
various issues plaguing the Indian economy and come out with imaginative
and yet very practical and implementable reforms and measures.
We cannot leave behind a legacy of debt for our future generation

4. Union Budget
2014-15
10th July, 2014

5. Union Budget
2014-15
10th July, 2014
Economy at standstill
Industry
• National Industrial Corridor Authority to coordinate the development of the industrial corridors
• PSUs capital investment of Rs 2,47,941 crores in FY15 to create a virtuous investment cycle
E-Governance will usher in transparency and accountability in the government processes.
Faster delivery mechanism in government will be positive for the economy
Measures
Impact
View
Boost to industry creation to spur growth
eBiz platform aims to create a business and investor friendly ecosystem in India by
making all business related clearances available on a 24x7 single portal

6. Union Budget
2014-15
10th July, 2014
Industry
• The Amritsar Kolkata Industrial master planning will be completed expeditiously for the
establishment of industrial smart cities in seven States of India.
• The master planning of three new smart cities in the Chennai-Bengaluru Industrial Corridor
region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka
will also be completed
• The perspective plan for the Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai
corridor would be completed with the provision for 20 new industrial clusters
• Kakinada, its adjoining area and the port will be developed as the key drivers of economic growth
in the region with a special focus on hardware manufacturing
Measures
Boost to industry creation to spur growthEconomy at standstill
Mission to bring all stakeholders under one umbrella

7. Union Budget
2014-15
10th July, 2014
MSME
• A committee with representatives from the Finance Ministry, Ministry of MSME, RBI to be
formed to give concrete suggestions for improving the financing architecture of MSMEs
• A Rs 10,000 crore fund to act as a catalyst to attract private capital by way of providing equity,
quasi equity, soft loans and other risk capital for start-up companies
• To establish technology centre network to promote innovation, entrepreneurship and agro-
industry and set up a fund with a corpus of Rs 200 crore
• The definition of MSME will be reviewed to provide for a higher capital ceiling
• A programme to facilitate forward and backward linkages with multiple value chain of
manufacturing and service delivery will be put in place
• Entrepreneur friendly legal bankruptcy framework will also be developed for SMEs to enable
easy exit
Measures
Boost to MSME to generate employment
SMEs form the backbone of our Economy. They account for a large portion of our
industrial output and employment
Economy at standstill

8. Union Budget
2014-15
10th July, 2014
Energy Security Incentivized fresh investments; to benefit entire value chain
Power
• Extension of 10 year tax holiday to the undertakings which begin generation, distribution and
transmission of power by FY17
• Gram Jyoti Yojana (Rs 500 crore ) for feeder separation to augment power supply to the rural
areas;
• Rs 100 crore new scheme to promote efficient thermal power
• Clean Energy Cess increased from Rs 50 / tonne to Rs 100 / tonne for expanded scope which
includes financing and promoting clean environment
Fresh impetus for new investments; entire power sector value chain to benefit significantly
Long Term Bullish on Power Sector
Measures
Impact
View
Power is a vital input for economic growth and the Government is committed to
providing 24x7 uninterrupted power supply to all homes

9. Union Budget
2014-15
10th July, 2014
Coal
• Adequate quantity for existing and upcoming power plants;
• Rationalize coal linkages to optimize transport of coal and reduce cost of power
• Rationalization of customs duty on
• coking coal hiked from 0% to 2.5%;
• steam coal and met coke hiked from 2% to 2.5%
• CVD reduced from 6% to 2%;
• Reduce overall cost through reduction of inefficiencies in coal production and transportation;
• Revive dead investments
Coal India – A long term bet; positive for power generation companies
Measures
Impact
View
Comprehensive measures for enhancing domestic coal production are being put in
place along with stringent mechanism for quality control
Focused efforts to remove coal production inefficienciesEnergy Security

10. Union Budget
2014-15
10th July, 2014
Oil &Gas
• Accelerate production and exploitation of Coal Bed Methane reserves ; scale up usage of PNG
rapidly; Build additional 15,000 km of gas pipelines in order to complete the gas grid on PPP
basis
• Concessional basic customs duty of 5% on machinery and equipment required for setting up of
(Bio-CNG)
• Overhaul petroleum subsidies, make it more targeted ; new urea policy to be formulated
Increased usage of natural gas to reduce dependence on crude oil derivatives  easing import
requirements
Long on Oil and Gas; ONGC, GAIL and Gujarat State Petronet key beneficiaries
Measures
Impact
View
I am conscious of the fact that Iraq crisis is leaving an impact on oil prices and the
situation in the middle-east continues to be volatile.
Promote usage of natural gas to replace conventional fuelEnergy Security

11. Union Budget
2014-15
10th July, 2014
Tap the huge potential available in renewable energy
Renewable Energy
SOLAR ENERGY
• Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, and Laddakh in J&K; solar
power driven agricultural pump sets; development of 1 MW Solar Parks on the banks of canals;
Accelerate Green Energy Corridor Project
• basic customs duty exemptions on: i) specified inputs for use in the manufacture of EVA sheets
and back sheets and ii) flat copper wire for the manufacture of PV ribbons; Extension of the
basic customs duty of 5 percent on machinery and equipment for Solar Energy Plant
WIND ENERGY
Reduction in customs duty from 10% to 5% on forged steel rings used in wind electricity
generators; exemption of 4% SAD on raw materials
Measures
Implementation of the Green Energy Corridor Project will be accelerated to facilitate
evacuation of renewable energy across the country
Energy Security

12. Union Budget
2014-15
10th July, 2014
Tap the huge potential available in renewable energy
Renewable Energy
Higher investments in renewable energy necessary to meet the growing demand for electricity
Bullish on Orient Green Power
New and Renewable energy deserves a very high priority
Impact
View
Energy Security

13. Union Budget
2014-15
10th July, 2014
Long term funding constraint, taken care of
Resource Mobilization
• Country to follow PPP model favoured for infrastructure creation. Already delivered 900 projects
delivered on PPP basis. 3P, an institution to support mainstreaming of PPPs to be set up with
corpus of Rs 500 crores
• Banks permitted to raise long term funds for lending to infrastructure sector with minimum
regulatory preemption such as CRR, SLR and PSL
• Proposal to create Infrastructure Investment Trusts with pass through benefits
• Long term funding will be readily available as banks are in a much better position to mobilize
resources
• Monetization of investments in existing projects and raising resources for new projects will be
easier
Positive for long gestation infrastructure projects. Major beneficiaries like IRB, ITNL, L&T, etc
Measures
Impact
View
India has emerged as the largest PPP market in the world with over 900 projects in
various stages of development
Infrastructure Dvpt

14. Union Budget
2014-15
10th July, 2014
Fresh impetus to road creation
Roads
• Investment in NHAI and State Roads to the tune of Rs 37,880 crores, which includes. Target for NH
construction set at 8500 km for FY15. (23 km /day)
• To initiate work on select expressways in parallel to the development of the Industrial Corridors.
For project preparation NHAI shall set aside a sum of Rs 500 crore
Road construction which has languished for years will get the necessary boost and go back to
therate of ~20km/day road construction which was achieved during previous NDA rule
Bullish on infrastructure sector. Road developers like IRB, Sadbhav Engg and major EPC
beneficiaries
Measures
Impact
View
Roads sector constitutes a very import artery of communication in the country
Infrastructure Dvpt

15. Union Budget
2014-15
10th July, 2014
Renewed focus on ports & SEZ development
Ports & SEZs
• Sixteen new port projects proposed with a focus on port connectivity
• Rs 11,635 crore will be allocated for the development of Outer Harbour Project in Tuticorin
• Effective steps to operationalize the SEZ Zones
• SEZs in Kandla and JNPT
New ports will give further impetus to import/export sector as well as decongest the traffic at
the existing ports
Positive for ports and logistic sector. Major beneficiaries Adani Ports , Gujarat Pipavav, Sical
Logistics, SCI, Great Eastern Shipping, ABG Shipyard, L&T, Pipavav Defense
Measures
Impact
View
Infrastructure Dvpt
Development of ports is also critical for boosting trade

16. Union Budget
2014-15
10th July, 2014
Improving connectivity
Airports, Waterways & Shipping
• Development of new airports in Tier I and Tier II through Airport Authority of India or PPPs
• Comprehensive policy to promote Indian ship building industry will be announce in FY15
• SEZs will be developed in Kandla and JNPT
• Development of inland waterways. ‘Jal Marg Vikas’ (National Waterways-I) will be developed
between Allahabad and Haldia to cover a distance of 1620 kms at cost of Rs 4200 crore in 6 years
Inland waterways can vastly improve capacity for the transportation of goods in an economical
manner.
New airports will bring air-travel within reach of millions of Indian
Positive for GMR, GVK, ABG Shipyard, L&T, Pipavav Defense
Measures
Impact
View
Despite increase in air connectivity air travel is still out of reach of a large number of
aspirational Indians
Infrastructure Dvpt

17. Union Budget
2014-15
10th July, 2014
Investments in real estate through new channels
Real Estate
• Incentives for REITs which will have pass through for the purpose of taxation
• Tax exemption limit increased for self occupied property from Rs 1.5 lakh to Rs 2 lakh
• REITs would attract long term finance from foreign and domestic sources and reduce the pressure
on the banking system while also making available fresh equity
• Will ease liquidity condition of developers by giving new access to capital by aiding faster
monetization of their assets
Positive for DLF, Prestige Estate, Phoenix Mills, Oberoi Realty, Nesco, Puravankara Projects
Measures
Impact
View
REITs have been successfully used as instruments for pooling of investment in
several countries
Infrastructure Dvpt

18. Union Budget
2014-15
10th July, 2014
New smart cities on anvil
Smart Cities
• To encourage development of Smart Cities, requirement of the built up area and capital
conditions for FDI is being reduced from 50,000 Sqm to 20,000 Sqm and from $10 mn to $5 mn
respectively with a three year post completion lock in
• Projects which commit at least 30 per cent of the total project cost for low cost affordable
housing will be exempted from minimum built up area and capitalization requirements, with the
condition of three year lock-in
Smart cities will provide habitation for the neo-middle class and help reduce the burden on
existing cities
Positive for players like HCC which have project execution experience (Lavasa)
Measures
Impact
View
The Prime Minister has a vision of developing ‘one hundred Smart Cities’, as satellite
towns of larger cities and by modernizing the existing mid-sized cities
Infrastructure Dvpt

19. Union Budget
2014-15
10th July, 2014
Housing
• Mission on Low Cost Affordable Housing in urban areas (anchored in NHB)
• Rs 4,000 crores to NHB to increase flow of cheaper credit for affordable housing to the urban
poor/EWS/LIG segment
• Inclusion of slum re-development in CSR activities
• Rs 8,000 crore to NHB to expand and continue to support Rural Housing
Impetus to housing sector in urban areas benefiting the poor and lower middle class
Positive for players like HDIL, Indiabulls Real Estate, Prestige as well as housing financing
companies such as LIC HF, HDFC, etc
Measures
Impact
View
Affordable housing accorded a top priority
Housing continues to be an area of concern for middle and lower middle class due to
high cost of financing
Infrastructure Dvpt

20. Union Budget
2014-15
10th July, 2014
Rural Development
• Shyama Prasad Mukherji Rurban Mission to deliver integrated project based infrastructure (also
include development of economic activities and skill development)
• Better and more energetic PMGSY with funding of Rs 14,389 crore
Infrastructure development in rural areas will have a multiplier effect on rural economy and in
turn will add to India’s growth
Measures
Impact
Development of rural areas in focus
PMGSY initiated during the NDA-I under the stewardship of Prime Minister Atal Behari
Vajpayee has had a massive impact in improvement of access for Rural population.
Infrastructure Dvpt

21. Union Budget
2014-15
10th July, 2014
Urban Development
• Provision of safe drinking water and sewerage management, use of recycled water for growing
organic fruits and vegetable, solid waste management and digital connectivity will be key focus
areas for urban development
• At least 500 such habitations will be provided support, while harnessing private capital and
expertise through PPPs, to renew infrastructure and services in the next ten years
• Pooled Municipal Debt Obligation Facility to be increase to Rs 50,000 crore from the current Rs
5,000 crore to support infrastructure development
Urban areas crumbling under burgeoning population due to lack of infrastructure, will benefit
from these steps
Positive for players like VA Tech Wabag, Ion Exchange India, Thermax
Measures
Impact
View
Development of urban areas a top priority
It is time that our cities and towns undergo urban renewal and become better places
to live in
Infrastructure Dvpt

22. Union Budget
2014-15
10th July, 2014
Mining
• Measures for enhancing domestic coal production are being put in place including supply of
crushed coal and setting up of washeries.
• Existing impasse in the coal sector to be resolved and adequate quantity of coal will be provided
to power plants which are already commissioned to be commissioned by March 2015
• Exercise to rationalize coal linkages which will optimize transport of coal and reduce cost of
power is underway.
• Government will work towards encouraging investments in mining and resolving the issues in
iron ore mining in an expedite manner
Mining sector which has come to a standstill due to environmental concerns and court
interventions to receive a boost from these initiatives
Positive for mining as well as power sector
Measures
Impact
View
Mining sector to break the shackles
The current impasse in mining sector, including, iron ore mining, will be resolved
expeditiously
Infrastructure Dvpt

23. Union Budget
2014-15
10th July, 2014
• Pradhan Mantri Gram Sadak Yojana – Rs 14,389 crore
• Providing wage and self-employment opportunities in rural areas under MGNREGA
• Allocated Rs 200 crore for start up entrepreneurs from scheduled castes
• To develop and promote handloom products – Rs 50 crore
• To setup 6 more textile mega-clusters – Rs 200 crore
• Emphasis on improving Tourism and developing manufacturing sector to aid job creation
• Will lead to asset creation substantially linked to agriculture and allied activities
Job Scarcity Eliminate poverty through sustainable livelihood options
I am sure these measures would incentivize value addition, generate
income and create more jobs in India
Measures
Impact

24. Union Budget
2014-15
10th July, 2014
Inflation
• Fiscal deficit to be reined at 4.1% of GDP in FY15, 3.6% in FY16 and 3.0% in FY17.
• Restructuring FCI, reducing transportation and distribution losses and improving efficacy of PDS.
• Wheat and rice to be provided at reasonable prices to the weaker sections of the society.
• Government shall undertake open market sales to keep prices under control.
• Kisan TV, to disseminate real time information to the farmers regarding new farming techniques,
water conservation, organic farming etc.
• To incentivize expansion of processing capacity, excise duty on specified food processing and
packaging machinery to be reduced from 10% to 6%.
• To develop scientific warehousing infrastructure in the country, an allocation of Rs 5,000 crore
has been done for the year FY15.
Measures
Various measure to tackle food inflation
We look forward to lower levels of inflation as compared to the days of double digit
rates of food inflation in the last two years

25. Union Budget
2014-15
10th July, 2014
Financial Indiscipline A challenge to curb
4.8%
5.7%
4.8%
5.4%
4.6%
4.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2010-11 2011-12 2012-13 2013-14BE 2013-14RE 2014-15BE
As % of GDP
Continuance of fiscal consolidation cannot be compromised while
providing for the essential items
Fiscal Deficit

26. Union Budget
2014-15
10th July, 2014
Should be of lesser concern going forward
I also propose to overhaul the subsidy regime and make it more targeted
while providing full protection to the marginalized and poor
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
50000
150000
250000
350000
450000
550000
2010-11 2011-12 2012-13 2013-14BE 2013-14RE 2014-15BE
Rs.Crore
Food Fertilizers
Petroleum Interest and Others
Total Subsidies Subsidies as a %of GDP (RHS)
Subsidies
Financial Indiscipline

27. Union Budget
2014-15
10th July, 2014
Creeping up beyond 3% of GDP; worrisome
2.5%
2.6%
2.7%
2.8%
2.9%
3.0%
3.1%
3.2%
3.3%
3.4%
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2010-11 2011-12 2012-13 2013-14RE 2014-15BE
Rs. in Crore
Int. Payment and Debt Servicing (LHS) Interest Payment as a %of GDP (RHS)
We cannot leave behind a legacy of debt for our future generations
Interest Payments
Financial Indiscipline

28. Union Budget
2014-15
10th July, 2014
Positively growth oriented
0
100000
200000
300000
400000
500000
600000
2010-11 2011-12 2012-13 2013-14RE 2014-15BE
Rs. in Crore
RE- State Plan RE- Central Plan CE- State Plan
CE- Central Plan Total Plan Expenditure Revenue Expenditure (RE)
I want to reiterate my Government’s firm commitment to strengthen the
federal structure of the country
Plan Expenditure
Financial Indiscipline

29. Union Budget
2014-15
10th July, 2014
Defense expenditure increased substantially
-100000
100000
300000
500000
700000
900000
1100000
1300000
2011-12 2012-13 2013-14BE 2013-14RE 2014-15BE
Rs. in Crore
RE - Int Payment & Debt Servicing RE- Defence
RE- Subsidies RE Others
CE- Loan and Advances to State, UT CE- Defence
CE- Others Total Non-Plan Expenditure
Revenue Expenditure (RE)
While preparing Non-Plan estimates due care has been taken to fully
provide for all the essential activities
Non Plan Expenditure
Financial Indiscipline

30. Union Budget
2014-15
10th July, 2014
Initiatives to kick start growth; control spending
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
2011-12 2012-13 2013-14BE 2013-14RE 2014-15BE
Rs. in Crore
Corporation tax Income tax Wealth Tax
Customs Union Excise Duties Service Tax
Taxes of the Union Direct Total
Fiscal prudence to me is of paramount importance because of
considerations of inter-generational equity
Budgetary Measures
Financial Indiscipline

31. Union Budget
2014-15
10th July, 2014
Agricultural Stagnation Heralding a technology driven second green revolution
• Pradhan Mantri Krishi Sinchayee Yojana (RS 1,000 crore) to provide assured irrigation and
mitigate risk of monsoon vagrancy.
• Agrciulture Research institutes (one each in Assam and Jharkhand) along the lines of Indian
Agriculture Research Institute, Pusato be set up (Rs 100 crore allocation)
• Rs 100 crore Agri Tech Infrastructure Fund
• Agriculture Universities in Andhra Pradesh and Rajasthan and Horticulture Universities in
Telangana and Haryana proposed (Rs 200 crore )
• Soil Health Card (Rs 100 crore) for every farmer; 100 Mobile Soil Testing Laboratories pan India
• Rs 100 crore “National Adaptation Fund” to tackle climate change
• Provide finance to 5 lakh joint farming groups of “Bhoomi Heen Kisan” through NABARD
Measures
We are committed to sustaining a growth of 4% in agriculture

32. Union Budget
2014-15
10th July, 2014
Stable tax regime committed to investors
• No more retrospective changes which creates a fresh liability
• All fresh cases arising out of the retrospective amendments of 2012 will be scrutinized by a High
Level Committee to be constituted by the CBDT
• Income arising to foreign portfolio investors from transaction in securities to be treated as capital
gains; will remove uncertainty for Foreign Portfolio Investors (FPIs) on taxation arising on account
of characterization of their income
• Income-tax Department to function as a facilitator as well ; 60 more Aykar Seva Kendras (ASK) to
be opened to facilitate service delivery
• Resident taxpayers enabled to obtain an advance ruling in respect of their income tax liability
above a defined threshold; strengthen the Authority for Advance Rulings by constituting
additional benches
• Enlarge the scope of the Income-tax Settlement Commission to make it easy for taxpayers to
approach the Commission for settlement of disputes
• Set up a High Level Committee to interact with trade and industry on a regular basis
• E biz platform marking all business investment related clearances & compliances on a 24*7
single portal . All central government department & Ministry to integrate by end CY14.
I hope the investor community both within India and abroad would repose
confidence and participate in the Indian growth story with renewed vigour.
Measures
Business Confidence

33. Union Budget
2014-15
10th July, 2014
Increase in tax exemption limits to boost disposable income
Direct Taxes
• No changes made in personal tax rates
• Personal tax exemption limit increased from Rs 2 lakh to Rs 2.5 lakh and from Rs 2.5 lakh to Rs 3
lakh for senior citizens
• Investment limit under section 80 C increased from Rs 1 lakh to Rs 1.5 lakh ; deduction limit on
account of interest on loan in respect of self occupied house property increased from Rs 1.5 lakh
to Rs 2 lakh
Housing continues to be an area of concern for middle and lower middle
class due to high cost of financing
Measures
Tax Conundrum
Impact
Increase in tax exemption limit will increase the disposable income, thereby boosting
consumer spending
View
Bullish for FMCG and HFCS & Banks entities such as banks and LIC Housing Finance

34. Union Budget
2014-15
10th July, 2014
Streamlining tax structures for various instruments
Direct Taxes
• Income arising to foreign portfolio investors from transaction in securities will be treated
ascapital gains; concessional rate of 15 percent on foreign dividends to continue without any
sunset date
Tax on long term capital gains on mutual funds (other than equity oriented funds) increased from
10 to 20 percent and holding increased from one year to 36 months; removed tax arbitrage
enjoyed by debt mutual funds over fixed deposits
• Removed the anomaly on divided distribution tax for corporate and mutual fund
• Government to review the Direct Taxes Code Bill, 2010 which lapsed with the dissolution of the
15th Lok Sabha.
Savings may switch to Fixed Deposits from Debt Mutual Funds
Net Effect of the direct tax proposals is revenue loss of Rs 22,200 crore
Measures
Tax Conundrum
Impact
View
Positive on Banks

35. Union Budget
2014-15
10th July, 2014
Introduction of GST to smoothen tax related complications
Indirect Taxes
• To make efforts to introduce the Goods and Services Tax (GST) this fiscal; introduction will
streamline tax administration and result in higher revenue collection
The debate whether to introduce a Goods and Services Tax (GST) must
now come to an end.
Measures
Tax Conundrum

36. Union Budget
2014-15
10th July, 2014
Increased efforts to reduce litigation on transfer pricing issues
• Strengthen the administrative set up of the Advance Pricing Agreement (APA) scheme to
expedite disposal of applications.
• Introduce a “Roll Back” provision in the APA scheme wherein an APA entered into for future
transactions may also be applied to international transactions undertaken in previous four years
in some circumstances.
• Introduce range concept for determination of arm’s length price in order to align Transfer Pricing
regulations in India with the best available practices
• Allow the use of multiple year data (earlier only one year data) for comparable analysis
Transfer Pricing is a major area of litigation for both resident and nonresident
taxpayers
Measures
Tax Conundrum

37. Union Budget
2014-15
10th July, 2014
FDI limit increase to boost foreign inflows
• Composite cap of FDI increased from 26 to 49 percent in defense manufacturing and insurance
• Steps to promote the deep and liquid corporate bond market; deepen the currency
• derivatives market by eliminating unnecessary restrictions
• Extend a liberalized facility of 5% withholding tax to all bonds issued abroad and extend the
validity of the scheme to 30.06.2017
• Liberalize the ADR/GDR regime to allow issuance of depository receipts on all permissible
securities; introduce a much more liberal Bharat Depository Receipt (BhDR).
• Allow international settlement of Indian debt securities
• Reintroduction of Kissan Vikas Patra to encourage people, with banked and unbanked savings to
invest
• Retail investors to get direct shareholding in PSU banks; will help raise Rs 2400 bn by 2018 to
meet Base-III norms
• Introduction of uniform KYC norms and inter-usability of the KYC; introduce one single operating
demat account
Globalization helps channelize external savings to India to bridge the resource gap
but also renders financial sector vulnerable to the vagaries of the global economy.
Measures
Resource crunch

38. Union Budget
2014-15
10th July, 2014
Increased efforts to reduce litigation on transfer pricing issues
Benefits of insurance in India have not reached a large section of the
people and insurance penetration and density are very low.
Impact
Resource crunch
Banking
Participation of retail investors in bank capitalization will lower the burden for capital infusion by
the government; emphasis on stressed asset recovery positive for banks’ financial health; boost to
the insurance sector
Long on Public and Private Banks
View

39. Union Budget
2014-15
10th July, 2014
Focus on financial inclusion and recovery of stressed assets
Banking
• A Financial Inclusion Mission to be launched on 15th August 2014; would particularly focus to
empower the weaker sections of the society
• Structure to be put in place for continuous authorization of universal banks in the private sector
• Give greater autonomy to banks while making them more accountable
• RBI to create a framework for licensing small banks and other differentiated banks
• Six new Debt Recovery Tribunals would be set up at Chandigarh, Bengaluru, Ernakulum,
Dehradun, Siliguri and Hyderabad for recovery of stressed assets
• Bridge the regulatory gap under the Prize Chits and Money Circulation Scheme (Banning) Act,
1978;
• Small savings instrument to cater to the requirements of educating and marriage of the Girl Child
will be introduced; a National Savings Certificate with insurance cover will also be launched
• Suitable incentives, using banking correspondents, strengthening micro-offices to boost the
insurance sector; take up the pending insurance laws (amendment) Bill for consideration of the
Parliament.
Financial stability is the foundation of a rapid recovery. Our banking
system needs to be further strengthened.
Measures
Resource crunch

40. Union Budget
2014-15
10th July, 2014
• Clean energy cess increased from Rs 50 per tonne to Rs 100 per tonne levied on coal, peat and
lignite mining
• Increase in cost for mining companies
Environmental Issues Financing and promoting clean energy initiatives
Cess to include financing and promoting clean environment initiatives
Measures
Impact

41. Union Budget
2014-15
10th July, 2014
Water Management
Measures
• In line to give an added impetus to watershed development in FY14-15,New
Programme called “Neeranchal” proposed with an initial outlay of Rs 2,142 crores.
• Rs 500 crore has been allocated for water reforms in NCT Delhi
• Rs.3,600 crore to be used for national drinking water programme
• A sum of Rs. 100 crore to expedite the preparation of Detailed Project Reports (on
river linking) has been set aside.
• Namami Ganga", an integrated Ganga Development Project; Rs 2,037 crore set aside,
which will also be boosted by NRIs’ fund
• Rs.100 crore set aside for ghat development and beautification of the river front at
Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi.
Focused on safe drinking water
Rivers form the lifeline of our country.

42. Union Budget
2014-15
10th July, 2014
• The composite limit of foreign investment is being raised to 49% with full Indian management
and control through the FIPB route
• Allocated Rs 2,29,000 crore for defence expenditure in FY15
• Rs 1,000 crore further allocated for developing railway near borders
• Will lead to foreign currency inflow in the country
• Government expenditure on the defence sector will be reduced shrinking the fiscal deficit
Positive for L&T, BEL, BHEL, Bharat Forge, Tata Power (JV’s with foreign tech players)
Defence & Int Security Foreign ownership limit raised to 49%
There can be no compromise with the defence of our country
Measures
Impact
View

43. Union Budget
2014-15
10th July, 2014
Neglected North East
• Investment in NHAI and state highways to the tune of Rs 37,887 core including Rs
3000 crore for Northeast
• An allocation of Rs 53,706 crore has been made for the overall development in North
Eastern region in FY14-15
• Organic farming of North East region to receive Rs 100cr
• To provide a strong platform to rich cultural and linguistic identity of the North East, a
24x7 channel ‘Arun Prabha’ will be launched
• Rs 1000 crore will be provided for rail connectivity in North-east region
• Sports university to be established in Manipur
Measures
Bridging the gap
North Eastern Region of India has tremendous potential for development

44. Union Budget
2014-15
10th July, 2014
• Rs 33,601 crore allocated for improving school infrastructure facilities
• Allocated Rs 100 crore for setting up virtual classrooms
• To set up five more IITs and IIMs – Rs 500 crore
• Have proposed to ease and simplify norms to facilitate education loans for higher studies.
Miscellaneous allocations One of the major priorities
Measures
The country needs a large number of Centers of higher learning

45. Union Budget
2014-15
10th July, 2014
• To set up national level sports academies for major games across the country
• Allocated Rs 200 crore for upgrading stadiums in Jammu and Kashmir valley
• To transform employment exchanges in to career centres – Rs 100 crore
• Will lead to development of brand India
• Tourism to improve further, leading to more job creation
Improve Tourism, Hospitality and Infrastructure in the country
Miscellaneous allocations Encourage youth and improve sports
Sports are an integral part of growing up and personality development
Measures
Impact
View

46. Union Budget
2014-15
10th July, 2014
• Greater transparency in government processes through IT enabled platforms
• National Rural Internet and Technology Mission for services in villages and schools – Rs 500 crore
• More acceptance of internet and technology in rural India
Miscellaneous allocations Imminent need to further bridge the divide
To ensure Broad band connectivity at village level
Measures
Impact

47. Union Budget
2014-15
10th July, 2014
• Allocated Rs 200 crore to support the Gujarat Government for the mission to build statue of
Sardar Vallabh Bhai Patel
Miscellaneous allocations National Pride
Measures

48. Union Budget
2014-15
10th July, 2014
• Allocated Rs 50,548 crore for welfare of SC and ST and further Rs 32, 387 crore under TSP
• Allocation of Rs 100 crore for welfare of the tribals
• Pension scheme for senior citizens under Varishtha Pension Bima Yojana
• An outlay of Rs 50 crores will be spent towards safety for women on public road transport
• Allocated Rs 150 crore to increase the safety of women in large cities
Miscellaneous allocations Safety and Welfare
Measures
Women’s safety is a concern

49. Union Budget
2014-15
10th July, 2014
• Allocated Rs 3,600 crore for providing safe drinking
• Allocated Rs 500 crore to set up 12 more government medical colleges
• Improving affordable healthcare in rural India
• National programme launched to improve malnutrition situation in India
Miscellaneous allocations Health for All
A national programme in Mission Mode is urgently required to halt the
deteriorating malnutrition situation in India
Measures

50. Union Budget
2014-15
10th July, 2014
• Several major space missions are planned in FY15 viz. flight of heavy capacity launcher GSLV Mk-
III, one launch of PSLV and two navigational satellites
• Mars Orbiter spacecraft expected to be orbiting from September 24, 2014
• Improvement in weather forecasting, channel broadcasting and internet technology
Miscellaneous allocations Several major space missions are planned in FY15
Measures
Impact
Several major space missions are planned in FY15

51. Union Budget
2014-15
10th July, 2014
FMCG
•Excise duty hiked for cigarettes in the range from 11-72%
•Custom Duty on fatty acids, crude palm stearin, RBD and other palm stearin and specified
industrial grade crude oils is being reduced from 7.5% to 0% for manufacture of soaps and
oelochemicals subject to actual user condition
•Excise duty on specified food processing and packaging machinery reduced from 10% to 6%.
•Increase in cost of cigarettes, which will be passed on to the consumers.
•Soap manufacturers will benefit from reduction in customs duty
•Packaging companies and food processing industry will benefit from excise duty reduction
Negative for ITC, Godfrey Phillips. Positive for HUL, GCPL, Britannia, Nestle, GSK Consumers, Paper
Products, Manjushree Technopack
Measures
Impact
View
Consumer segment to receive further boost
I propose to increase the specific excise duty on cigarettes in the range of 11 percent
to 72 percent
Miscellaneous

52. Union Budget
2014-15
10th July, 2014
Consumer Durables
• Colour picture tubes exempted from basic customs duty to make cathode ray TVs cheaper and
reduction in excise duty to nil for LCD and LED TV’s below 19 inches
Will reduce the overall costs for end consumers and boost manufacturing domestically
Positive for Videocon
Measures
Impact
View
To encourage manufacturing of TV in the country
Cathode ray TVs are used by weaker sections who cannot afford to buy more
expensive flat panel TVs
Miscellaneous

53. Union Budget
2014-15
10th July, 2014
Farm Equipment
• Financing 0.5 mn farmers through NABARD.
• Planned banking agricultural disbursement at Rs 800000 crore.
• Interest subvention at 7%. Additional 4% for timely payment.
•
•
• Beneficial for farm equipment manufacturers
• Positive for M&M and VST Tillers
Measures
Impact
View
Indirectly supporting the farm equipment sector
I propose to provide finance to 5 lakh joint farming groups of “Bhoomi Heen Kisan”
through NABARD in the current financial year
Miscellaneous

54. Union Budget
2014-15
10th July, 2014
Automobiles
• Excise duty concessions extended beyond 30th June 2014 for a period of 6 months up to 31st
December 2014
• To continue with this concessional rate of 15% on foreign dividends without any sunset date
• As excise duty decision was taken few days back, it won’t have any impact on sector
• Indian companies with foreign subsidiaries to benefit from continuation of concessional rate
• Neutral for auto sector. Positive for Tata Motors.
Measures
Impact
View
No more negative is a big positive
I have already extended the excise duty concessions beyond 30th June 2014 for a
period of 6 months up to 31st December 2014
Miscellaneous

55. Union Budget
2014-15
10th July, 2014
Media
• Service tax will be levied on sale of space or time for advertisements in online and mobile
advertising.
•
•
• Slightly negative for e-Commerce players
• Negative for Infoedge
Measures
Impact
View
No major announcement
I propose to provide finance to 5 lakh joint farming groups of “Bhoomi Heen Kisan”
through NABARD in the current financial year
Miscellaneous

56. Union Budget
2014-15
10th July, 2014
Budget Summary Nominal GDP to grow at 13%
policy regime that will result in the desired macro-economic outcome of higher growth, lower
inflation, sustained level of external sector balance and a prudent policy stance
(Rs. in Crore) 2011-12 2012-13 2013-14BE 2013-14RE 2014-15BE
Chg FY14
BE/RE
Chg BE
FY15/FY14
Revenue Receipts 751,436 879,232 1,056,331 1,029,252 1,189,763 -3% 16%
Net Tax Revenue 629,764 741,877 884,078 836,026 977,258 -5% 17%
Non tax Revenue 121,671 137,354 172,252 193,226 212,505 12% 10%
Capital Receipts 568,918 531,139 608,967 561,182 605,129 -8% 8%
Recoveries of receipts 18,850 15,060 10,654 10,803 10,527 1% -3%
Other Reciepts (Disinvestments) 18,088 25,890 55,814 25,841 63,425 -54% 145%
Debt Reciepts 531,980 541,202 542,499 524,539 514,016 -3% -2%
Total Receipts 1,320,354 1,410,371 1,665,298 1,590,434 1,794,892 -4% 13%
Non Plan Expenditure 891,991 996,745 1,109,974 1,114,903 1,219,891 0% 9%
Non Plan Revenue 812,049 914,304 992,907 1,027,687 1,114,609 4% 8%
Interest Payments 273,150 313,170 370,684 380,066 427,011 3% 12%
Non Plan Capital 79,941 82,441 117,067 87,215 105,282 -25% 21%
Plan Expenditure 412,375 413,625 555,322 475,532 575,000 -14% 21%
Plan Revenue 333,737 329,208 443,260 371,851 453,503 -16% 22%
Plan Capital 78,638 84,417 112,062 103,681 121,497 -7% 17%
Total Expenditure 1,304,366 1,410,370 1,665,296 1,590,434 1,794,891 -4% 13%
GDP Nominal 8,974,947 10,159,884 10,020,620 11,320,463 12,839,952 13% 13%
Gross Fiscal Deficit 515,990 490,597 542,499 524,539 531,177 -3% 1%
Fiscal deficit as a % of GDP 5.7% 4.8% 5.4% 4.6% 4.1% -14% -11%
Revenue Deficit 394,348 365,896 379,838 370,288 382,923 -3% 3%
Revenue deficit as a % of GDP 4.4% 3.6% 3.8% 3.3% 3.0% -14% -9%
Primary Deficit 242,840 177,428 171,814 144,473 101,620 -16% -30%
Primary deficit as a % of GDP 2.7% 1.7% 1.7% 1.3% 0.8% -26% -38%

57. Union Budget
2014-15
10th July, 2014
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