PRESENTED BY -

This budget is presented by Finance minister Mr. Arun JatleyIts is presented on 10th July 2014 in Loksabha .

It is his first budget to be presented as a finance minister.

BUDGET HIGHILIGHT’S

Launch of Digital INDIA program for Braoadband connectivityFiscal deficit target at 4.1%

these year GANGA cleaning

project to be launched

with 2037 cr. Rs.

Disinvestment in PSU Banks upto 49%.

Allocation of 7600 Cr. Rs.to For setting up new smart cities

Radio taxiImported electronic productHalf/cut broken diamond

Union Budget 2014-15:Impact on Sectors

Introduction• The Union Budget, presented by finance minister Arun Jaitley on 10th July 2014, had much to offer to sectors across board.• Here’s a look at the impact on different industries:

1)The housing and real estate sector is the biggest beneficiary of the budget.

• 2)The budget announced multiple measures like development of 100smart cities, foreign direct investment in real state.

• 3) These will directly affect the real estate and construction sector positively.

What will be the impact ?

• Higher tax-exemption on home loan interest could also help increase demand for houses.

• These are much-required measures to the sector, which has been affected by poor demand and high costs.

• Banks are the second-biggest beneficiary after real estate,

• The budget allowed for banks to raise capital and hiked the foreign direct investment limit in the insurance.

• It also allowed banks to raise long-term funds for lending to theinfrastructure sector.

• This will help banks raise funds more easily for infrastructure projects and reduce financial burden.

• Increase in tax exemptions on investments too could see funds flowing to the financial sector through increased savings.

What will Be the imapct ?

AUTO SECTOR

•• The finance minister had already extended excise duty concessions to the auto sector before the budget.

•There were no direct measures for the sector in the speech.

• The budget’s concentration on improving agriculture too is positive for the auto sector.

• This is because, a betterment in agriculture will improve rural income, which could lead to an increase in demand for cars and two-wheelers.

WHAT WILL BE THE IMAPACT ?

INFORMATION TECHOLOGY

• The government has set aside Rs 10,000 Crore to fund start-ups and entrepreneurs.

• It has also concentrated on improving technology in governance.

WHAT WILL BE THE IMAPACT ?

• This is a big positive for the sector as it will lead to increase In the usage of technology, thus providing more business to Indian companies.

Metals & Mining

• Many measures were announced that would positively impact the metals & mining sector.

• These include sustained infrastructure thrust To stimulate steel demand; promotion of housing for low-medium income groups.

WHAT WILL BE THE IMAPACT ?

• The changes in indirect taxes like increase in export duty and increase in custom duty on imported products of stainless steel have positive implications for the sector as they discourage imports and encourage domestic companies.

• The increase in custom duty on coking coal from nil to 2.5%, however, could negatively impact major steel producers .

POWER SECTOR

• The finance minister proposed an extension of the sunset date for power sector undertakings to on or before March 31, 2014 for claiming 100 per cent deduction of profits for 10 years.

• This move is a positive move but was largely expected.

WHAT WILL BE THE IMAPACT ?• The budget also proposed anincrease in import duty on coal tofuel domestic coal supply.

• However, this could negativelyimpact power producers largelydependent on coal imports.

• Wind power developers would bepositively impacted by the move toreduce duties on wind powercomponents to 5% from 10% earlier.

CAPITAL GOODS

• Companies engineering equipment and machinery would be largely benefited by the budget.

• It announced an extension of investment allowance on new plant and machinery.

• The government also extended the 10-year tax holiday to power utilities. This could fuel demand for machinery and equipment.

WHAT WILL BE THE IMAPACT ?

• The increase in the government’s Defence spending, as well as the hike in foreign direct investment (FDI) in the sector to 49%, will have positive implications.

• The increase in infrastructure focus could also be good news for the capital goods sector.