Industry & Budget 2013-14

The General Budget presented by the Finance Minister Shri P. Chidamaram for the year 2013-14 had several initiatives for the Industries. The Budget for 2013-14 has a clear focus on catalyzing investment, creating jobs and providing opportunities for the youth. Several positive measures have been announced in the Budget which will boost the investment sentiment.

The decision to allow 15% investment deduction allowance over and above the depreciation for investments of Rs. 100 crores or more on plant and machinery between April 1, 2013 and March 31, 2015 will encourage the private industry to speed up their investment decisions.

The Budget has assured to provide adequate resources for the Delhi-Mumbai Industrial Corridor (DMIC) Project. Work will start for establishing two townships at Dholera and Shendra Bidkin this year.

Projects for Bengaluru Mumbai Industrial Corridor and Chennai Bengaluru Industrial Corridor are strong endorsed in the Budget. So in a way, Government will take decisive steps to see that a robust economic corridor is created which links Delhi to Chennai.

Four Infrastructure Debt Funds have been announced of which two have already been set up. The decision to allow issuance of tax free bonds of Rs. 50,000 crores for infrastructure projects will create new ways of financing infrastructure.

The decision to set up two new ports in West Bengal and Andhra Pradesh will add 100 MT capacity which will be a big boost to infrastructure and bulk exports for which adequate capacities are not available currently.

The decision to raise resources through World Bank and ADB for creation of trans-national highways in the North Eastern region connecting with Myanmar will increase economic activity in the region.

Measures have been announced for encouraging construction activity and diversification of the savings portfolio and making housing loans more attractive with additional interest deduction of Rs. 1 lakh.

FM has also assured a predictable tax regime for foreign investment Skill Development has been identified as an area of high priority. Vocational course testing services have been exempted from service tax.

As part of the general thrust of the government to enhance the skill base of the country, monetary reward of Rs. 10,000 per candidate who successfully pass the vocational training has been announced.

The decision to reduce customs duty on machinery for leather sector from 7.5% to 5% will give a boost to this labour intensive sector.

Similarly, reduction in the duty on pre-forms of precious and semi-precious stones from 10 percent to 2 percent will encourage exports in this important sector.

The Cabinet Committee on Investment (CCI) has been set up to monitor investment proposals as well as projects under implementation, including stalled projects, and guide decision-making in order to remove bottlenecks and quicken the pace of implementation.