India: What are the big expectations from budget 2019?

Anand Mahindra the chairman of the Mahindra Group, a Mumbai-based business conglomerate was the first to congratulate the finance minister for presenting the <a href="http://www.wionews.com/business-economy/budget-2019-full-text-of-finance-minister-piyush-goyals-speech-in-parliament-194373">interim Budget 2019</a>.

Referring to the popular tagline from the "Uri" movie starring Vicky Kaushal, Mahindra asked, "How high was Piyush Goyal’s Josh?’ the answer would not be in doubt..."&nbsp;

"I was bracing for a populist ,profligate&nbsp;Budget driven by ‘election panic.’ &nbsp;I’m just grateful that the reliefs to the key middle class &amp; farmer segments were delivered in a measured way without risking bankruptcy of the economy. This was a controlled, pump-priming exercise..."

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Before any discussion on the numbers around the budget, it’s clear that if anyone were to ask ‘How high was Piyush Goyal’s Josh?’ the answer would not be in doubt...
— anand mahindra (@anandmahindra) <a href="https://twitter.com/anandmahindra/status/1091236400437981184?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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I was bracing for a populist,profligate budget driven by ‘election panic.’ I’m just grateful that the reliefs to the key middle class &amp; farmer segments were delivered in a measured way without risking bankruptcy of the economy. This was a controlled, pump-priming exercise...
— anand mahindra (@anandmahindra) <a href="https://twitter.com/anandmahindra/status/1091252955632652293?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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The phrase was also used by Piyush Goyal in the Parliament during the presentation of the Budget.

"How's the josh" has also been previously used by several leaders including PM Modi and Defence minister Nirmala Sitharaman.

Chairman, Adani Group also hailed the interim Budget 2019. He tweeted, "India's middle class, small traders and farmers are the lifelines of its economic growth. By catering to these ambitions #Budget2019 infuses hopes for millions of dreams.

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India's middle class, small traders and farmers are the lifelines of its economic growth. By catering to these ambitions <a href="https://twitter.com/hashtag/Budget2019?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2019</a> infuses hopes for millions of dreams.
— Gautam Adani (@gautam_adani) <a href="https://twitter.com/gautam_adani/status/1091263706858545152?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Anand Mahindra the chairman of the Mahindra Group, a Mumbai-based business conglomerate was the first to congratulate the finance minister for presenting the interim Budget 2019.

Anand Mahindra the chairman of the Mahindra Group, a Mumbai-based business conglomerate was the first to congratulate the finance minister for presenting the interim Budget 2019. Referring to the popular tagline from the "Uri" movie starring Vicky Kaushal, Mahindra asked, "How high was Piyush Goyal’s Josh?’ the answer would not be in doubt..." "I was bracing for a populist ,profligate Budget driven by ‘election panic.’ I’m just grateful that the reliefs to the key middle class & farmer segments were delivered in a measured way without risking bankruptcy of the economy. This was a controlled, pump-priming exercise..." Before any discussion on the numbers around the budget, it’s clear that if anyone were to ask ‘How high was Piyush Goyal’s Josh?’ the answer would not be in doubt... — anand mahindra (@anandmahindra) February 1, 2019 × I was bracing for a populist,profligate budget driven by ‘election panic.’ I’m just grateful that the reliefs to the key middle class & farmer segments were delivered in a measured way without risking bankruptcy of the economy. This was a controlled, pump-priming exercise... — anand mahindra (@anandmahindra) February 1, 2019 × The phrase was also used by Piyush Goyal in the Parliament during the presentation of the Budget. "How's the josh" has also been previously used by several leaders including PM Modi and Defence minister Nirmala Sitharaman. Chairman, Adani Group also hailed the interim Budget 2019. He tweeted, "India's middle class, small traders and farmers are the lifelines of its economic growth. By catering to these ambitions #Budget2019 infuses hopes for millions of dreams. India's middle class, small traders and farmers are the lifelines of its economic growth. By catering to these ambitions #Budget2019 infuses hopes for millions of dreams. — Gautam Adani (@gautam_adani) February 1, 2019 ×

Budget 2019: How high was Piyush Goyal’s josh, asks Anand Mahindra

Prime Minister Narendra Modi's government is expected to try and shore up its political support with big ticket farm giveaways and tax cuts for the middle class in its <a href="http://www.wionews.com/business-economy/key-expectations-from-indias-2019-20-interim-budget-194188">final federal budget </a>on Friday, months before elections.

Modi is facing growing discontent over depressed farm incomes and doubts over whether his policies are creating enough jobs. A local media report on Thursday quoted a government survey as saying the jobless rate was the highest in at least 45 years, putting further pressure on the government.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/budget-2019-what-is-interim-budget-and-how-is-it-different-from-the-regular-one-193702">What is interim Budget and how is it different from the regular one?</a>

Piyush Goyal, the interim finance minister, will present the 2019-20 budget to parliament, in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment.

The government is set to step up rural welfare spending by 16 per cent for the fiscal year beginning April to 1.3 trillion rupees ($18.25 billion), two government sources said, aiming to boost support in the countryside where more than two-thirds of India's 1.3 billion people live.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/union-budget-2019-how-it-is-formulated-and-presented-194051">How Union Budget 2019 is formulated and presented</a>

The budget, which is interim and is likely to be followed by a full one in July, is expected to project economic growth of around 7.5 percent for the next financial year, while expanding capital spending on railways, roads, ports by 7-8 per cent, and estimating an increase in revenue of about 15 percent, officials said.

Stung by opposition parties' victories in three state polls in December and need to call a national election by May, Modi has already exempted many small businesses from paying taxes under a unified goods and services tax (GST).

The government is now considering raising the income level at which people need to pay personal tax, long demand for the country's influential middle class.

"The pressure to further expand the farmer welfare programme ahead of the 2019 elections is high for PM Modi," said CLSA India.

More than 900 million people will be eligible to cast votes in the world's biggest ever democratic exercise and the pressure to woo them is intense.

Rahul Gandhi, the leader of the main opposition Congress party, is closing in on Modi's lead, according to polls. His promise of a minimum income for the poor has increased pressure on the government to make populist announcements in its budget.

The electoral compulsions mean that major economic reforms, such as tax cuts for bigger companies and plans to bring down the budget deficit, could be put on hold at least until after the election, government sources said.

The higher spending, along with a shortfall in tax collections, will push the fiscal deficit up to the equivalent of 3.5 per cent of gross domestic product for the year ending in March, overshooting a previous 3.3 per cent target, according to one of the sources with direct knowledge of budget discussions.

That would fit with the expectations of a Reuters poll of economists.

The source said there was a chance that the government could take corrective action in March, with an expectation that the election schedule will be settled by that time and that public focus will shift to campaigning.

"In our view, with the upcoming polls gaining precedence, fiscal consolidation is likely to take a back seat," said Nirmal Bang, a brokerage.

Prime Minister Narendra Modi's government is expected to try and shore up its political support with big ticket farm giveaways and tax cuts for the middle class in its final federal budget on Friday, months before elections.

Prime Minister Narendra Modi's government is expected to try and shore up its political support with big ticket farm giveaways and tax cuts for the middle class in its final federal budget on Friday, months before elections. Modi is facing growing discontent over depressed farm incomes and doubts over whether his policies are creating enough jobs. A local media report on Thursday quoted a government survey as saying the jobless rate was the highest in at least 45 years, putting further pressure on the government. Also read: What is interim Budget and how is it different from the regular one? Piyush Goyal, the interim finance minister, will present the 2019-20 budget to parliament, in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment. The government is set to step up rural welfare spending by 16 per cent for the fiscal year beginning April to 1.3 trillion rupees ($18.25 billion), two government sources said, aiming to boost support in the countryside where more than two-thirds of India's 1.3 billion people live. Also read: How Union Budget 2019 is formulated and presented The budget, which is interim and is likely to be followed by a full one in July, is expected to project economic growth of around 7.5 percent for the next financial year, while expanding capital spending on railways, roads, ports by 7-8 per cent, and estimating an increase in revenue of about 15 percent, officials said. Stung by opposition parties' victories in three state polls in December and need to call a national election by May, Modi has already exempted many small businesses from paying taxes under a unified goods and services tax (GST). The government is now considering raising the income level at which people need to pay personal tax, long demand for the country's influential middle class. "The pressure to further expand the farmer welfare programme ahead of the 2019 elections is high for PM Modi," said CLSA India. More than 900 million people will be eligible to cast votes in the world's biggest ever democratic exercise and the pressure to woo them is intense. Rahul Gandhi, the leader of the main opposition Congress party, is closing in on Modi's lead, according to polls. His promise of a minimum income for the poor has increased pressure on the government to make populist announcements in its budget. The electoral compulsions mean that major economic reforms, such as tax cuts for bigger companies and plans to bring down the budget deficit, could be put on hold at least until after the election, government sources said. The higher spending, along with a shortfall in tax collections, will push the fiscal deficit up to the equivalent of 3.5 per cent of gross domestic product for the year ending in March, overshooting a previous 3.3 per cent target, according to one of the sources with direct knowledge of budget discussions. That would fit with the expectations of a Reuters poll of economists. The source said there was a chance that the government could take corrective action in March, with an expectation that the election schedule will be settled by that time and that public focus will shift to campaigning. "In our view, with the upcoming polls gaining precedence, fiscal consolidation is likely to take a back seat," said Nirmal Bang, a brokerage.

PM Narendra Modi looks to budget to shore up political base

<a href="http://www.wionews.com/business-economy/budget-2019-india-increases-significant-contribution-to-maldives-bimstec-to-get-similar-funds-as-saarc-194396">Budget 2019: India increases significant contribution to </a><a href="http://www.wionews.com/business-economy/budget-2019-india-increases-significant-contribution-to-maldives-bimstec-to-get-similar-funds-as-saarc-194396">Maldives</a><a href="http://www.wionews.com/business-economy/budget-2019-india-increases-significant-contribution-to-maldives-bimstec-to-get-similar-funds-as-saarc-194396">; BIMSTEC to get similar funds as SAARC</a>

The&nbsp;interim Budget saw India&nbsp;increase its contribution substantially to the Maldives while bringing support to SAARC and BIMSTEC Secretariat at the same level.

<a href="http://www.wionews.com/business-economy/defence-budget-increased-over-rs-20000-crore-crosses-rs-300000-crore-for-first-time-194380">Defence Budget increased over Rs 20,000 crore; crosses Rs 3,00,000 crore for first time</a>

An outlay of Rs 3.05 lakh crore was set aside for the&nbsp;defence Budget for 2019-20&nbsp;which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal.

<a href="http://www.wionews.com/india-news/budget-will-take-india-on-path-to-development-pm-modi-194378">Budget</a><a href="http://www.wionews.com/india-news/budget-will-take-india-on-path-to-development-pm-modi-194378"> will take India on </a><a href="http://www.wionews.com/india-news/budget-will-take-india-on-path-to-development-pm-modi-194378">path</a><a href="http://www.wionews.com/india-news/budget-will-take-india-on-path-to-development-pm-modi-194378"> to development: PM Modi</a>

After the government presented its final Budget,<a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324">&nbsp;PM&nbsp;</a><a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324">Modi</a><a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324">&nbsp;while addressing the n</a>ation said the Budget will bring positive changes in the country. "Various government schemes will help the marginalised section of society," the prime minister asserted, adding,"it will bring down the poverty level in the country."

<a href="http://www.wionews.com/world/inf-treaty-with-russia-has-been-invalidated-germany-194404">INF treaty with Russia has been invalidated: Germany</a>

Germany said on Friday that&nbsp;Russia had "de facto invalidated"&nbsp;a landmark cold war missile reduction treaty which the US is poised to abandon, with Europe anxious at the prospect of a new arms race.

<a href="http://www.wionews.com/world/firmly-support-eu-efforts-to-safeguard-iran-nuclear-deal-china-194415">Firmly support EU efforts to safeguard Iran nuclear deal: China</a>

China's foreign ministry spokesman Geng Shuang said the country highly appreciates the efforts made by European countries to uphold the Iran nuclear deal and supports the establishment of the new trade mechanism for Iran.

Budget 2019: India increases significant contribution to Maldives; BIMSTEC to get similar funds as SAARC The interim Budget saw India increase its contribution substantially to the Maldives while bringing support to SAARC and BIMSTEC Secretariat at the same level.

Budget 2019: India increases significant contribution to Maldives; BIMSTEC to get similar funds as SAARC The interim Budget saw India increase its contribution substantially to the Maldives while bringing support to SAARC and BIMSTEC Secretariat at the same level. Defence Budget increased over Rs 20,000 crore; crosses Rs 3,00,000 crore for first time An outlay of Rs 3.05 lakh crore was set aside for the defence Budget for 2019-20 which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal. Budget will take India on path to development: PM Modi After the government presented its final Budget, PM Modi while addressing the nation said the Budget will bring positive changes in the country. "Various government schemes will help the marginalised section of society," the prime minister asserted, adding,"it will bring down the poverty level in the country." INF treaty with Russia has been invalidated: Germany Germany said on Friday that Russia had "de facto invalidated" a landmark cold war missile reduction treaty which the US is poised to abandon, with Europe anxious at the prospect of a new arms race. Firmly support EU efforts to safeguard Iran nuclear deal: China China's foreign ministry spokesman Geng Shuang said the country highly appreciates the efforts made by European countries to uphold the Iran nuclear deal and supports the establishment of the new trade mechanism for Iran.

News brief: Big stories of the day

Benchmark Sensex ended over 212 points higher in see-saw trade Friday after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections.

After rallying over 500 points to hit the day's high of 36,778.14, the 30-share index gave up all gains and sank to 36,221.32 in late-afternoon trade. It finally ended 212.74 points, or 0.59 per cent, higher at 36,469.43.

Similarly, the 50-share NSE Nifty jumped 62.70 points, or 0.58 per cent, to close at 10,893.65.

Auto and consumption stocks buzzed as investors welcomed incentives for the agriculture sector and middle class in the budget, traders said.

Finance Minister Piyush Goyal proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000.

The proposal will benefit 3 crore middle-class tax payers, Goyal said while unveiling the budget proposals for 2019-20.

As widely expected, the finance minister also announced the Pradhan Mantri Kisan Samman Nidhi for small and marginal farmers, providing Rs 6,000 per year to be transferred directly to farmers' bank accounts.

Overall, market mood was positive even as the government overshot the fiscal deficit target for the current financial year on the back of populist measures ahead of the general elections.

Goyal said the fiscal deficit for the current financial year is expected to be 3.4 per cent of GDP. As per the Budget estimate, the fiscal deficit for 2018-19 was pegged at 3.3 per cent.

"All these are those factors (sops) are going to bring in a lot of liquidity to the market in terms of investment," said Mustafa Nadeem, CEO, Epic Research.

Some profit-booking and consolidation in the short term was expected as prices tend to absorb the Budget, but we expect the momentum to remain strong, he added.

The BSE auto, consumer durables, FMCG and realty indices climbed up to 2.62 per cent.

Top gainers in the Sensex pack included Hero MotoCorp, Maruti, HCL Tech, Asian Paints, Bajaj Auto, Bajaj Finance, HDFC, RIL, HUL, Bharti Airtel and PowerGrid, rising up to 7.48 per cent.

Vedanta was the biggest loser on the Sensex, cracking 17.82 per cent after the metals and mining giant Thursday reported a 25.54 per cent decline in consolidated net profit at Rs 1,574 crore for the December 2018 quarter on the back of higher expenses and drop in commodity prices.

Banking stocks were the other top losers, with Yes Bank, SBI, ICICI Bank and Axis Bank falling up to 4.68 per cent.

Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3,006.41 crore Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,634.32 crore, provisional data available with BSE showed.

Elsewhere in Asia, Shanghai Composite Index rallied 1.30 per cent and Japan's Nikkei rose 0.07 per cent. Hong Kong's Hang Seng ended 0.04 per cent lower and Korea's Kospi slipped 0.06 per cent.

In the Eurozone, Frankfurt's DAX gained 0.20 per cent, Paris CAC 40 was up 0.19 per cent and London's FTSE jumped 0.37 per cent in late morning deals.

The rupee, meanwhile, depreciated 24 paise against US dollar to 71.32.

The benchmark Brent crude futures were trading slightly lower at US $60.53 per barrel.&nbsp;

Benchmark Sensex ended over 212 points higher in see-saw trade Friday after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections.

Benchmark Sensex ended over 212 points higher in see-saw trade Friday after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections. After rallying over 500 points to hit the day's high of 36,778.14, the 30-share index gave up all gains and sank to 36,221.32 in late-afternoon trade. It finally ended 212.74 points, or 0.59 per cent, higher at 36,469.43. Similarly, the 50-share NSE Nifty jumped 62.70 points, or 0.58 per cent, to close at 10,893.65. Auto and consumption stocks buzzed as investors welcomed incentives for the agriculture sector and middle class in the budget, traders said. Finance Minister Piyush Goyal proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000. The proposal will benefit 3 crore middle-class tax payers, Goyal said while unveiling the budget proposals for 2019-20. As widely expected, the finance minister also announced the Pradhan Mantri Kisan Samman Nidhi for small and marginal farmers, providing Rs 6,000 per year to be transferred directly to farmers' bank accounts. Overall, market mood was positive even as the government overshot the fiscal deficit target for the current financial year on the back of populist measures ahead of the general elections. Goyal said the fiscal deficit for the current financial year is expected to be 3.4 per cent of GDP. As per the Budget estimate, the fiscal deficit for 2018-19 was pegged at 3.3 per cent. "All these are those factors (sops) are going to bring in a lot of liquidity to the market in terms of investment," said Mustafa Nadeem, CEO, Epic Research. Some profit-booking and consolidation in the short term was expected as prices tend to absorb the Budget, but we expect the momentum to remain strong, he added. The BSE auto, consumer durables, FMCG and realty indices climbed up to 2.62 per cent. Top gainers in the Sensex pack included Hero MotoCorp, Maruti, HCL Tech, Asian Paints, Bajaj Auto, Bajaj Finance, HDFC, RIL, HUL, Bharti Airtel and PowerGrid, rising up to 7.48 per cent. Vedanta was the biggest loser on the Sensex, cracking 17.82 per cent after the metals and mining giant Thursday reported a 25.54 per cent decline in consolidated net profit at Rs 1,574 crore for the December 2018 quarter on the back of higher expenses and drop in commodity prices. Banking stocks were the other top losers, with Yes Bank, SBI, ICICI Bank and Axis Bank falling up to 4.68 per cent. Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3,006.41 crore Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,634.32 crore, provisional data available with BSE showed. Elsewhere in Asia, Shanghai Composite Index rallied 1.30 per cent and Japan's Nikkei rose 0.07 per cent. Hong Kong's Hang Seng ended 0.04 per cent lower and Korea's Kospi slipped 0.06 per cent. In the Eurozone, Frankfurt's DAX gained 0.20 per cent, Paris CAC 40 was up 0.19 per cent and London's FTSE jumped 0.37 per cent in late morning deals. The rupee, meanwhile, depreciated 24 paise against US dollar to 71.32. The benchmark Brent crude futures were trading slightly lower at US $60.53 per barrel.

Budget day: Sensex ends 212 points higher; auto, consumption stocks rally

The NDA government poured extra money into the support for farmers, delivering on Friday its last Budget ahead of the Lok Sabha elections 2019.

Here is how experts reacted to the Budget:

Upasna Bharadwaj, Senior Economist, Kotak Mahindra Bank, Mumbai

"The fiscal deficit flat at 3.4 per cent of GDP, which is a sharp deviation from fiscal consolidation roadmap, is a disappointment. The consequent numbers of both net and gross market borrowings seem higher than the market expectation."

"Fiscal slippage on the back of more spending to support the consumer class will probably delay the rate cut by the monetary policy committee and these concerns will weigh on the bond markets."

"The fillip to the consumer/farm demand is expected to provide the much-needed support to the fading private consumption demand.

Tanvee Gupta Jain, Chief India Economist, UBS Securities India, Mumbai

"The fiscal deficit target for this year was largely in line with market expectations but the fiscal deficit target at 3.4 per cent for full-year 2020 was a little disappointing."

"Populism remained the focus ahead of elections. The budget provided a consumption boost to farmers and middle-class households. However, it will further delay the much-needed investment cycle recovery."

Anubhuti Sahay, Senior Economist, Standard Chartered Bank, Mumbai

"The fiscal deficit targets for FY19 as well as FY20 are far better than market expectations, though there is a slight slippage... It is likely to bring a lot of relief to the market, which was excessively worried about the massive fiscal slippage."

"Having said that, what we would like to see are its revenue projections and it is possible that the projections might be ambitious at this particular juncture. Maybe once we get the numbers going forward there can be some worries again around the fiscal deficit, whether it can be adhered to or not."

"The Budget was focused on farmers and the middle class that should help consumption and probably support the domestic growth." 
 
Shilan Shah, Senior India Economist, Capital Economics, Singapore

"Pretty much in line with what was expected. The one thing that has surprised is the extent of election-related sweeteners that have been rolled out."

"So, we thought there would be less space to announce big giveaways, but the government has actually managed to pull it off, at least on paper."

"I think ultimately, their spending plans look very unfeasible to me, so I wouldn't be surprised to see spending get cut later in the year."

"It looks pretty difficult to achieve but it seems to be based on quite ambitious revenue projections."&nbsp;

"The biggest stops that we have seen are the giveaways for farmers especially."

Garima Kapoor, Economist and Vice President, Elara Capital, Mumbai

"The Budget is clearly farm-focused, with elections on the mind. Farmers, age-old, unorganised sector, MSME and middle class - they're all finding favour, with the agricultural sector getting the biggest support."

"The 750 billion rupees in the Centre's Budget for the farmers' scheme is a huge number, so we need to watch out for where the funding is coming from. If the scheme is implemented well, you can expect consumption to be supported next year."

"The catch here is, even if the BJP does not come back to power in May, the new government will also implement this scheme because no government will want to look anti-poor or anti-farmer. The government will have to find fresh resources to the tune of 750 billion rupees."

"Although the equity markets will be happy because of the consumption boost, the bond market may not be, as we need to see the intricacies of how much is getting funded through what route and what deficit numbers."

"If the government has provided enough consumption boost, then RBI would want to take a cautious stance and would not undertake a rate cut."

Rupa Rege Nitsure, Group Chief Economist, L&amp;T Finance Holdings, Mumbai

"It's more of performance reporting and aspirations than any big-ticket changes. This was expected as it is an interim Budget valid for a few months. It needs to be stated in an unambiguous fashion that the credit for inflation control and AQR primarily goes to the RBI." 
 
Abheek Barua, Chief Economist, HDFC Bank, Delhi

"This is on expected lines. There is a slight slip in the fiscal deficit."

"The new income support scheme is tepid, in terms of the actual numbers. It should not lead to a blowout in the fiscal deficit if it indeed is part of the Budget when it is finally announced in full form."

"The only issue here is that there is no substitution away from indirect benefits in the form of subsidies to a direct transfer. This is on top of some benefits they are receiving."

"If this is the model going forward, let's see what fiscal implications it might have." "This is a top-up on an existing regime and that is something that worries me, but not at this stage." 
 
(Disclaimer: The opinions expressed above are the personal views of the experts and do not reflect the views of ZMCL)

The NDA government poured extra money into the support for farmers, delivering on Friday its last Budget ahead of the Lok Sabha elections 2019. Here is how experts reacted to the Budget: Upasna Bharadwaj, Senior Economist, Kotak Mahindra Bank, Mumbai "The fiscal deficit flat at 3.

The NDA government poured extra money into the support for farmers, delivering on Friday its last Budget ahead of the Lok Sabha elections 2019. Here is how experts reacted to the Budget: Upasna Bharadwaj, Senior Economist, Kotak Mahindra Bank, Mumbai "The fiscal deficit flat at 3.4 per cent of GDP, which is a sharp deviation from fiscal consolidation roadmap, is a disappointment. The consequent numbers of both net and gross market borrowings seem higher than the market expectation." "Fiscal slippage on the back of more spending to support the consumer class will probably delay the rate cut by the monetary policy committee and these concerns will weigh on the bond markets." "The fillip to the consumer/farm demand is expected to provide the much-needed support to the fading private consumption demand. Tanvee Gupta Jain, Chief India Economist, UBS Securities India, Mumbai "The fiscal deficit target for this year was largely in line with market expectations but the fiscal deficit target at 3.4 per cent for full-year 2020 was a little disappointing." "Populism remained the focus ahead of elections. The budget provided a consumption boost to farmers and middle-class households. However, it will further delay the much-needed investment cycle recovery." Anubhuti Sahay, Senior Economist, Standard Chartered Bank, Mumbai "The fiscal deficit targets for FY19 as well as FY20 are far better than market expectations, though there is a slight slippage... It is likely to bring a lot of relief to the market, which was excessively worried about the massive fiscal slippage." "Having said that, what we would like to see are its revenue projections and it is possible that the projections might be ambitious at this particular juncture. Maybe once we get the numbers going forward there can be some worries again around the fiscal deficit, whether it can be adhered to or not." "The Budget was focused on farmers and the middle class that should help consumption and probably support the domestic growth." Shilan Shah, Senior India Economist, Capital Economics, Singapore "Pretty much in line with what was expected. The one thing that has surprised is the extent of election-related sweeteners that have been rolled out." "So, we thought there would be less space to announce big giveaways, but the government has actually managed to pull it off, at least on paper." "I think ultimately, their spending plans look very unfeasible to me, so I wouldn't be surprised to see spending get cut later in the year." "It looks pretty difficult to achieve but it seems to be based on quite ambitious revenue projections." "The biggest stops that we have seen are the giveaways for farmers especially." Garima Kapoor, Economist and Vice President, Elara Capital, Mumbai "The Budget is clearly farm-focused, with elections on the mind. Farmers, age-old, unorganised sector, MSME and middle class - they're all finding favour, with the agricultural sector getting the biggest support." "The 750 billion rupees in the Centre's Budget for the farmers' scheme is a huge number, so we need to watch out for where the funding is coming from. If the scheme is implemented well, you can expect consumption to be supported next year." "The catch here is, even if the BJP does not come back to power in May, the new government will also implement this scheme because no government will want to look anti-poor or anti-farmer. The government will have to find fresh resources to the tune of 750 billion rupees." "Although the equity markets will be happy because of the consumption boost, the bond market may not be, as we need to see the intricacies of how much is getting funded through what route and what deficit numbers." "If the government has provided enough consumption boost, then RBI would want to take a cautious stance and would not undertake a rate cut." Rupa Rege Nitsure, Group Chief Economist, L&T Finance Holdings, Mumbai "It's more of performance reporting and aspirations than any big-ticket changes. This was expected as it is an interim Budget valid for a few months. It needs to be stated in an unambiguous fashion that the credit for inflation control and AQR primarily goes to the RBI." Abheek Barua, Chief Economist, HDFC Bank, Delhi "This is on expected lines. There is a slight slip in the fiscal deficit." "The new income support scheme is tepid, in terms of the actual numbers. It should not lead to a blowout in the fiscal deficit if it indeed is part of the Budget when it is finally announced in full form." "The only issue here is that there is no substitution away from indirect benefits in the form of subsidies to a direct transfer. This is on top of some benefits they are receiving." "If this is the model going forward, let's see what fiscal implications it might have." "This is a top-up on an existing regime and that is something that worries me, but not at this stage." (Disclaimer: The opinions expressed above are the personal views of the experts and do not reflect the views of ZMCL)

Expert's view: How Budget 2019 impacts farmers and middle class

Equity benchmarks Sensex, and Nifty Wednesday ended flat as cautious investors refrained from taking any bets ahead of January derivatives expiry, US Fed policy outcome and upcoming Union Budget.

The BSE Sensex ended marginally lower by 1.25 points and the NSE Nifty closed with a negligible loss of 0.4 points.&nbsp;

Heavyweights ICICI Bank and Tata Steel — both rising over 5 per cent — saved the day for the Sensex. Also, a mixed trading pattern in global shares as US-China trade talks kicked off earlier in the day made domestic investors even more cautious.&nbsp;

After opening over 200 points higher, the 30-share Sensex swung 359 points to finally settle 1.25 points lower at 35,591.25.

Similarly, the broader NSE Nifty ended 0.40 points down at 10,651.80.

Sectorally, metal and banking stocks rallied the most, while FMCG and realty stocks came under selling pressure.

Broader indices, however, outperformed benchmark indices with BSE Smallcap index jumping 0.78 per cent and BSE Midcap index rising 0.22 per cent.

On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of Rs 354.36 crore Tuesday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 81.27 crore, provisional data available with BSE showed.

Global investor sentiment was mixed as American and Chinese negotiators started two days of high-level talks aimed at settling a six-month trade war that has weakened both sides, shaken financial markets and clouded the outlook for the global economy, experts said.

Domestic investors turned cautious ahead of futures and options expiry of January series contracts and the upcoming interim budget, to be held on Friday.

Market is also awaiting the outcome of the US Federal Reserve's meeting later in the day, they added.

Among the Sensex pack, ICICI Bank was the top gainer, rallying 6.05 per cent, ahead of its quarterly earning scheduled for release later in the day.

Shares of Tata Steel soared 5.14 per cent after S&amp;P Global Ratings said the company's plan to sell a majority stake in its Southeast Asia business will help the company reduce debt by about 3 per cent without impacting its business position.

Axis Bank shares also jumped 4.56 per cent after the third largest private sector lender Axis Bank reported a 131 per cent surge in net income for the December quarter.

Other gainers include HCL Tech, Bajaj Finance, SBI, L&amp;T, Coal India and Vedanta, gaining up to 2.82 per cent.

On the other hand, Bajaj Auto, Kotak Bank, HDFC, Yes Bank, Sun Pharma, Bharti Airtel, ITC, RIL, HDFC Bank, HUL, ONGC and Sun Pharma were the top losers, shedding up to 2.65 per cent.

Elsewhere in Asia, Hong Kong's Hang Seng rose 0.40 per cent and Korea's Kospi surged 1.05 per cent; while Shanghai Composite Index shed 0.07 per cent and Japan's Nikkei slipped 0.52 per cent.

In the eurozone, Frankfurt's DAX slipped 0.21 per cent, while Paris CAC 40 rose 0.53 per cent in late morning deals. While London's FTSE jumped 0.94 per cent.

The Indian rupee, meanwhile, depreciated marginally against US dollar at 71.15.

The benchmark Brent crude futures rose 0.16 per cent to USD 61.30 per barrel.&nbsp;

Equity benchmarks Sensex, and Nifty Wednesday ended flat as cautious investors refrained from taking any bets ahead of January derivatives expiry, US Fed policy outcome and upcoming Union Budget.

Equity benchmarks Sensex, and Nifty Wednesday ended flat as cautious investors refrained from taking any bets ahead of January derivatives expiry, US Fed policy outcome and upcoming Union Budget. The BSE Sensex ended marginally lower by 1.25 points and the NSE Nifty closed with a negligible loss of 0.4 points. Heavyweights ICICI Bank and Tata Steel — both rising over 5 per cent — saved the day for the Sensex. Also, a mixed trading pattern in global shares as US-China trade talks kicked off earlier in the day made domestic investors even more cautious. After opening over 200 points higher, the 30-share Sensex swung 359 points to finally settle 1.25 points lower at 35,591.25. Similarly, the broader NSE Nifty ended 0.40 points down at 10,651.80. Sectorally, metal and banking stocks rallied the most, while FMCG and realty stocks came under selling pressure. Broader indices, however, outperformed benchmark indices with BSE Smallcap index jumping 0.78 per cent and BSE Midcap index rising 0.22 per cent. On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of Rs 354.36 crore Tuesday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 81.27 crore, provisional data available with BSE showed. Global investor sentiment was mixed as American and Chinese negotiators started two days of high-level talks aimed at settling a six-month trade war that has weakened both sides, shaken financial markets and clouded the outlook for the global economy, experts said. Domestic investors turned cautious ahead of futures and options expiry of January series contracts and the upcoming interim budget, to be held on Friday. Market is also awaiting the outcome of the US Federal Reserve's meeting later in the day, they added. Among the Sensex pack, ICICI Bank was the top gainer, rallying 6.05 per cent, ahead of its quarterly earning scheduled for release later in the day. Shares of Tata Steel soared 5.14 per cent after S&P Global Ratings said the company's plan to sell a majority stake in its Southeast Asia business will help the company reduce debt by about 3 per cent without impacting its business position. Axis Bank shares also jumped 4.56 per cent after the third largest private sector lender Axis Bank reported a 131 per cent surge in net income for the December quarter. Other gainers include HCL Tech, Bajaj Finance, SBI, L&T, Coal India and Vedanta, gaining up to 2.82 per cent. On the other hand, Bajaj Auto, Kotak Bank, HDFC, Yes Bank, Sun Pharma, Bharti Airtel, ITC, RIL, HDFC Bank, HUL, ONGC and Sun Pharma were the top losers, shedding up to 2.65 per cent. Elsewhere in Asia, Hong Kong's Hang Seng rose 0.40 per cent and Korea's Kospi surged 1.05 per cent; while Shanghai Composite Index shed 0.07 per cent and Japan's Nikkei slipped 0.52 per cent. In the eurozone, Frankfurt's DAX slipped 0.21 per cent, while Paris CAC 40 rose 0.53 per cent in late morning deals. While London's FTSE jumped 0.94 per cent. The Indian rupee, meanwhile, depreciated marginally against US dollar at 71.15. The benchmark Brent crude futures rose 0.16 per cent to USD 61.30 per barrel.

Sensex, Nifty flat ahead of F&O expiry, Union Budget

German luxury car maker Audi today said it will increase prices of its vehicles by up to Rs 9 lakh from April 1 to pass on the impact of increased customs duty in the Budget.

The price across the entire model range will be increased by up to 4 per cent owing to the hike in the customs duty announced in the Union Budget, Audi India said in a statement.

The price increase will range from Rs 1 lakh to Rs 9 lakh and will be effective from 1st April 2018, it added.

Audi sells a host of vehicles in India ranging from SUV Q3 with price starting at Rs 35.35 lakh to sports car R8 which is tagged at Rs 2.63 crore.

Audi India Head Rahil Ansari said, &quot;The increase in custom duty and introduction of social welfare surcharge in lieu of an education cess (which is higher than the erstwhile cess) in the Union Budget made the increase in price inevitable.&quot;

The company has tried to absorb the impact of the increase in customs duty and has minimised the price hike, he added.

Seeking support from the government for luxury car industry, Ansari said,&quot;There is no doubt that increase in car sales would definitely help the government in garnering more accumulated taxes.&quot;

In the Budget for 2018-19, finance minister Arun Jaitley had increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10 per cent to 15 per cent.

The government had also raised custom duty on specified parts/accessories of motor vehicles, motor cars, motor cycles from 7.5 per cent to 15 per cent.

The price across the entire model range will be increased by up to 4% owing to the hike in the customs duty announced in the Union Budget, Audi India said in a statement

German luxury car maker Audi today said it will increase prices of its vehicles by up to Rs 9 lakh from April 1 to pass on the impact of increased customs duty in the Budget. The price across the entire model range will be increased by up to 4 per cent owing to the hike in the customs duty announced in the Union Budget, Audi India said in a statement. The price increase will range from Rs 1 lakh to Rs 9 lakh and will be effective from 1st April 2018, it added. Audi sells a host of vehicles in India ranging from SUV Q3 with price starting at Rs 35.35 lakh to sports car R8 which is tagged at Rs 2.63 crore. Audi India Head Rahil Ansari said, "The increase in custom duty and introduction of social welfare surcharge in lieu of an education cess (which is higher than the erstwhile cess) in the Union Budget made the increase in price inevitable." The company has tried to absorb the impact of the increase in customs duty and has minimised the price hike, he added. Seeking support from the government for luxury car industry, Ansari said,"There is no doubt that increase in car sales would definitely help the government in garnering more accumulated taxes." In the Budget for 2018-19, finance minister Arun Jaitley had increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10 per cent to 15 per cent. The government had also raised custom duty on specified parts/accessories of motor vehicles, motor cars, motor cycles from 7.5 per cent to 15 per cent.

Audi to hike car prices by up to Rs 9 lakh from April

<a href="http://www.wionews.com/india-news/arun-jaitley-chairs-pre-budget-meeting-in-delhi-29924" target="_blank">Ahead of the Budget Session</a> of Parliament commencing on January 29, Finance Minister Arun Jaitley performed the symbolic &#39;Halwa Ceremony&#39; here on Saturday.

The ceremony, which was performed at North Block in Delhi, marks the inauguration of the formal printing of different documents relating to the <a href="http://www.wionews.com/india-news/my-governments-only-agenda-for-budget-is-development-pm-modi-to-zee-news-30099" target="_blank">Union Budget</a> for 2018-19.

The &#39;halwa ceremony&#39; is observed to maintain the secrecy of the budget preparation process. As part of the ritual, which has continued for long, &#39;halwa&#39; is prepared in a big &#39;kadhai&#39; or wok and served to the entire staff in the ministry.

The significance of this is the commencement of printing of documents related to the budget. It is said that officials from the ministry are required to stay back at the printing press itself until the Budget is presented in Parliament, barring select senior officials.

Apart from Jaitley, those present at the ceremony were Chief Economic Adviser Arvind Subramanian, Economic Affairs Secretary Subhash Chandra Garg, MoS Finance Shiv Pratap Shukla and others.

The ceremony, which was performed at North Block in Delhi, marks the inauguration of the formal printing of different documents relating to the Union Budget for 2018-19

Ahead of the Budget Session of Parliament commencing on January 29, Finance Minister Arun Jaitley performed the symbolic 'Halwa Ceremony' here on Saturday. The ceremony, which was performed at North Block in Delhi, marks the inauguration of the formal printing of different documents relating to the Union Budget for 2018-19. The 'halwa ceremony' is observed to maintain the secrecy of the budget preparation process. As part of the ritual, which has continued for long, 'halwa' is prepared in a big 'kadhai' or wok and served to the entire staff in the ministry. The significance of this is the commencement of printing of documents related to the budget. It is said that officials from the ministry are required to stay back at the printing press itself until the Budget is presented in Parliament, barring select senior officials. Apart from Jaitley, those present at the ceremony were Chief Economic Adviser Arvind Subramanian, Economic Affairs Secretary Subhash Chandra Garg, MoS Finance Shiv Pratap Shukla and others.

Jaitley performs 'Halwa' ceremony ahead of Budget Session

The upcoming budget may bear good tidings for the low-income group.

Reports suggest that the Modi government may boost its &#39;housing for all&#39; vision by going big on announcements for the low-income group in this year&#39;s budget.&nbsp;

The Prime Minister Housing Scheme, also known as the Pradhan Mantri Awas Yojna, may introduce more options to cater to the low-income group, lure them and make housing more affordable.&nbsp;

Interest subsidy under the scheme can be extended. People with an annual income of 6 lakh may now get bigger houses by 60 meters.&nbsp;

The Pradhan Mantri Awas Yojna has not been able to garner enough demand from the low-income group owing to smaller sizes of the houses offered under the scheme.&nbsp;

People with an annual income of 6 lakh may now get bigger houses by 60 meters

The upcoming budget may bear good tidings for the low-income group. Reports suggest that the Modi government may boost its 'housing for all' vision by going big on announcements for the low-income group in this year's budget. The Prime Minister Housing Scheme, also known as the Pradhan Mantri Awas Yojna, may introduce more options to cater to the low-income group, lure them and make housing more affordable. Interest subsidy under the scheme can be extended. People with an annual income of 6 lakh may now get bigger houses by 60 meters. The Pradhan Mantri Awas Yojna has not been able to garner enough demand from the low-income group owing to smaller sizes of the houses offered under the scheme.

Budget: Government may make big announcements for low-income groups in housing scheme

Prime Minister Narendra Modi on Friday said that his government&#39;s only <a href="http://www.wionews.com/india-news/arun-jaitley-chairs-pre-budget-meeting-in-delhi-29924">agenda for the Budget</a> is development.

&quot;My government has only one agenda for Budget - and that is development. And that&#39;s what you will see,&quot; PM Modi said in an exclusive interview to Zee News.

Modi government is going to present its <a href="http://www.wionews.com/india-news/india-plans-to-raise-health-spending-by-11-in-budget-less-than-requested-29949">last full Budget</a> ahead of the general elections 2019. The financial statement for the year ahead is being keenly watched by critics because of tough decisions taken by the Modi government like launching the unified Goods and Services Tax (GST) and demonetisation.

When asked about the bold financial decisions taken by his government, PM Modi said, &quot;If you measure the work done by our government in these four years by only these two parametres, it&#39;s unfair. After nationalisation of banks, about 30-40 per cent of population was out of banking system. We brought them into the system. Isn&#39;t that an achievement? Thousands of girls skipped schools because there were no toilets. We built those toilets for them. Isn&#39;t that an achievement?&rdquo;

Modi also said that he is in favour of holding general elections and state polls together.

&quot;Logically speaking, holding different elections in different dates creates burden on the exchequer. Politicians are always under stress. So I think both Vidhan Sabha and Lok Sabha elections should be organised simultaneously. It will save money and manpower,&quot; the PM said.

Modi said that his government&#39;s achievements can&#39;t be measured on just two decisions - the Goods and Services Tax (GST) and demonetisation.

He also said that every atom of his body is indebted to the country and he wants to keep serving the people of the country. &quot;When I see satisfaction in the eyes of a common man, it gives me power,&quot; PM Modi said.

These are the highlights of the interview.&nbsp; Catch the full interview on Zee News at 8pm on Saturday.

Modi government is going to present its last full Budget ahead of the general elections 2019.

Prime Minister Narendra Modi on Friday said that his government's only agenda for the Budget is development. "My government has only one agenda for Budget - and that is development. And that's what you will see," PM Modi said in an exclusive interview to Zee News. Modi government is going to present its last full Budget ahead of the general elections 2019. The financial statement for the year ahead is being keenly watched by critics because of tough decisions taken by the Modi government like launching the unified Goods and Services Tax (GST) and demonetisation. When asked about the bold financial decisions taken by his government, PM Modi said, "If you measure the work done by our government in these four years by only these two parametres, it's unfair. After nationalisation of banks, about 30-40 per cent of population was out of banking system. We brought them into the system. Isn't that an achievement? Thousands of girls skipped schools because there were no toilets. We built those toilets for them. Isn't that an achievement?” Modi also said that he is in favour of holding general elections and state polls together. "Logically speaking, holding different elections in different dates creates burden on the exchequer. Politicians are always under stress. So I think both Vidhan Sabha and Lok Sabha elections should be organised simultaneously. It will save money and manpower," the PM said. Modi said that his government's achievements can't be measured on just two decisions - the Goods and Services Tax (GST) and demonetisation. He also said that every atom of his body is indebted to the country and he wants to keep serving the people of the country. "When I see satisfaction in the eyes of a common man, it gives me power," PM Modi said. These are the highlights of the interview. Catch the full interview on Zee News at 8pm on Saturday.

My government's only agenda for Budget is development: PM Modi to Zee News

Even ordinarily, every Union Budget is important. But the Budget for 2018-19 has an added significance for a number of reasons, which is why February 1 is being so keenly anticipated. External factors, as certainly as internal economic dynamics, have always influenced Budget proposals. This time will be no different, except that those external factors, given the way they have got arranged, should have a greater political import than would normally have been the case.

&nbsp;

Many people had hoped to get a teaser on the Budget in Prime Minister Narendra Modi&rsquo;s first interview of this year, given to Zee News recently. But he did not oblige, merely reiterating that the forthcoming Budget would proceed in the direction of reforms that his Government had initiated and carried forward since May 2014. In a subsequent interview to another television channel, the Prime Minister was no more forthcoming &mdash; he only said that people were not enamoured of sops; they preferred to be gainfully empowered.

&nbsp;

The Union Budget 2018-19 will be interesting for the following reasons. It will be the first national Budget since the implementation of the Goods and Services Tax (GST) regime and the disruption in the economy that resulted as a consequence. It will also be the last full Budget before the Lok Sabha election in mid-2019. It comes soon after the Gujarat Assembly election result, which offers many lessons to the ruling Bharatiya Janata Party at the Centre. And, it shall be presented months before a spate of Assembly elections that are scheduled in the major States, the outcome of which could depend, inter alia, on what the Budget offers.&nbsp;

&nbsp;

The Union Budget for 2018-19 will also, incidentally, be placed just days after Prime Minister Modi returns from the World Economic Forum meeting in Davos, where the Indian business story gets hard-sold to an international audience. This cocktail of circumstances makes the coming Budget special.

&nbsp;

There is speculation on what the Budget does to counter the disruption in economic growth consequent to GST &mdash; and, earlier, demonetisation. It is true that the BJP has through its recent electoral wins demonstrated that the people have by and large endorsed the twin measures. But economic management is a different kettle of fish.&nbsp;

&nbsp;

While international agencies, such as the World Bank have hailed GST and demonetisation, they have also pointed to the immediate after-effects that need fixing. GDP growth is expected to be about seven per cent, down from&nbsp; 8.6 per cent in 2015. The best case scenario projects growth to touch 7.3 per cent by this year-end. Sustained growth is essential to both the reduction of poverty and enhancement of employment opportunities. The contraction in manufacturing and to an extent the services sector is seen as a fallout of the GST.

&nbsp;

Given that the most affected have been businessmen and small traders &mdash; both being strong vote-banks of the BJP &mdash; the Budget is expected to address the concerns. How this would be done, remains in the speculative realm. There is also talk that the Government may bite the bullet by drastically overhauling the personal income tax system to provide a big relief to the salaried middle class, yet another important constituent of the ruling party.&nbsp;

&nbsp;

Post Davos, international investors will watch carefully the Budget proposals to see whether further concrete steps are taken to enhance the ease of doing business. Now that India has moved several places high to be among the 100 top nations in the &lsquo;ease of doing business&rsquo; ranking of the World Bank, expectations are higher.&nbsp;

&nbsp;

It&rsquo;s true that the Government has abolished dozens of archaic laws that impeded business growth, relaxed foreign direct investment (FDI) norms in various sectors, and established a rule-based transparent mechanism in dealings. But investors will would want to know if the Government is willing to put its own money where its mouth is &mdash; that is, show the way to the private sector through massive public investments without compromising on its fiscal deficit target.&nbsp;

&nbsp;

But the real challenge before the Modi Government is to fix the crisis in the rural sector (with the agricultural component being the most essential). The BJP may have won the Gujarat election but that came with a wake-up call from the rural voters. The India-Bharat divide was evident, with urban Gujarat voting solidly for the BJP and the rural regions shifting away &mdash; even if not very decisively for now &mdash; from the ruling party. The obvious cause was the perception that the BJP had failed to address rural distress. In the recent interview, Prime Minister Modi acknowledged the problem of rural distress and stressed on the need to tackle it.

&nbsp;

Three major States with an overwhelming rural population &mdash; Karnataka, Rajasthan and Madhya Pradesh &mdash; vote for new Assemblies later this year. The last two are ruled by the BJP and there has been unrest among the farmers over a variety of issues. The Congress has naturally been quick to cash in on the discontent and is busy burnishing its image as a farmer-friendly party. The last time the Congress had sought to pin down the Modi regime on the India-Bharat narrative was two years ago, when Rahul Gandhi had floated the &ldquo;suit boot ki sarkar&rdquo; jibe at the Government. In response, the Government presented its &lsquo;credentials&rsquo; of being pro-poor/pro-farmer in the Union Budget for 2016-17. The Prime Minister himself went to town, calling it &ldquo;pro-village, pro-poor, pro-farmer&rdquo;. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) schemes was rewarded with a higher outlay, and the Pradhan mantra Krishi Yojana was announced. Will we see the revival of a similar spirit in the coming Budget?

&nbsp;

Admittedly, the task of setting right the agrarian/rural crisis is enormous, and the Government has additionally raised the bar of performance. It promised to double farmer income in five years. That and other assurances are what it will have to keep, besides offering tangible solutions, for the rural voters in the States going to polls soon. The distress, in short, has arisen from two factors. The first is that the remuneration the farmers get for their produce from Government agencies does not even on occasions cover the input cost. The second, often related to the first, is that farmers have fallen in a cycle of debt from which they are finding it exceedingly difficult to extricate themselves. Farmer suicides have only worsened an already bad situation. Then there is the difficulty of selling their produce in the markets at acceptable prices. Placating the rural voter has never been an easy task.&nbsp;

&nbsp;

Today, according to provisional estimates of the Central Statistics Office, agriculture accounts for less than 20 per cent of the nation&rsquo;s economy &mdash; the services sector has 54 per cent while industry is close to 29 per cent. This despite the fact that 44 per cent of the country&rsquo;s workforce is employed in agriculture (according to the World Bank and International Labour Organisation).

&nbsp;

The 2018-19 Union Budget is the last big chance for the Government to tweak its priorities so as to be seen as being pro-rural. Chandrababu Naidu had once lost Andhra Pradesh despite being hailed the world over for his administrative skills; the rural voter was turned off by the glitz and glamour which seemed so alien to his living conditions. In 2004, the BJP&rsquo;s Indian Shining campaign failed to give the party a second consecutive chance to rule &mdash; again because rural India refused to endorse the optimism. Union Minister for Finance Arun Jaitley has a good memory. Let&rsquo;s see if the lessons of the recent months and of the past years get reflected in the coming Budget.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

&nbsp;&nbsp; &nbsp;

The 2018-19 Union Budget is the last big chance for the Government to tweak its priorities so as to be seen as being pro-rural.

Even ordinarily, every Union Budget is important. But the Budget for 2018-19 has an added significance for a number of reasons, which is why February 1 is being so keenly anticipated. External factors, as certainly as internal economic dynamics, have always influenced Budget proposals. This time will be no different, except that those external factors, given the way they have got arranged, should have a greater political import than would normally have been the case. Many people had hoped to get a teaser on the Budget in Prime Minister Narendra Modi’s first interview of this year, given to Zee News recently. But he did not oblige, merely reiterating that the forthcoming Budget would proceed in the direction of reforms that his Government had initiated and carried forward since May 2014. In a subsequent interview to another television channel, the Prime Minister was no more forthcoming — he only said that people were not enamoured of sops; they preferred to be gainfully empowered. The Union Budget 2018-19 will be interesting for the following reasons. It will be the first national Budget since the implementation of the Goods and Services Tax (GST) regime and the disruption in the economy that resulted as a consequence. It will also be the last full Budget before the Lok Sabha election in mid-2019. It comes soon after the Gujarat Assembly election result, which offers many lessons to the ruling Bharatiya Janata Party at the Centre. And, it shall be presented months before a spate of Assembly elections that are scheduled in the major States, the outcome of which could depend, inter alia, on what the Budget offers. The Union Budget for 2018-19 will also, incidentally, be placed just days after Prime Minister Modi returns from the World Economic Forum meeting in Davos, where the Indian business story gets hard-sold to an international audience. This cocktail of circumstances makes the coming Budget special. There is speculation on what the Budget does to counter the disruption in economic growth consequent to GST — and, earlier, demonetisation. It is true that the BJP has through its recent electoral wins demonstrated that the people have by and large endorsed the twin measures. But economic management is a different kettle of fish. While international agencies, such as the World Bank have hailed GST and demonetisation, they have also pointed to the immediate after-effects that need fixing. GDP growth is expected to be about seven per cent, down from 8.6 per cent in 2015. The best case scenario projects growth to touch 7.3 per cent by this year-end. Sustained growth is essential to both the reduction of poverty and enhancement of employment opportunities. The contraction in manufacturing and to an extent the services sector is seen as a fallout of the GST. Given that the most affected have been businessmen and small traders — both being strong vote-banks of the BJP — the Budget is expected to address the concerns. How this would be done, remains in the speculative realm. There is also talk that the Government may bite the bullet by drastically overhauling the personal income tax system to provide a big relief to the salaried middle class, yet another important constituent of the ruling party. Post Davos, international investors will watch carefully the Budget proposals to see whether further concrete steps are taken to enhance the ease of doing business. Now that India has moved several places high to be among the 100 top nations in the ‘ease of doing business’ ranking of the World Bank, expectations are higher. It’s true that the Government has abolished dozens of archaic laws that impeded business growth, relaxed foreign direct investment (FDI) norms in various sectors, and established a rule-based transparent mechanism in dealings. But investors will would want to know if the Government is willing to put its own money where its mouth is — that is, show the way to the private sector through massive public investments without compromising on its fiscal deficit target. But the real challenge before the Modi Government is to fix the crisis in the rural sector (with the agricultural component being the most essential). The BJP may have won the Gujarat election but that came with a wake-up call from the rural voters. The India-Bharat divide was evident, with urban Gujarat voting solidly for the BJP and the rural regions shifting away — even if not very decisively for now — from the ruling party. The obvious cause was the perception that the BJP had failed to address rural distress. In the recent interview, Prime Minister Modi acknowledged the problem of rural distress and stressed on the need to tackle it. Three major States with an overwhelming rural population — Karnataka, Rajasthan and Madhya Pradesh — vote for new Assemblies later this year. The last two are ruled by the BJP and there has been unrest among the farmers over a variety of issues. The Congress has naturally been quick to cash in on the discontent and is busy burnishing its image as a farmer-friendly party. The last time the Congress had sought to pin down the Modi regime on the India-Bharat narrative was two years ago, when Rahul Gandhi had floated the “suit boot ki sarkar” jibe at the Government. In response, the Government presented its ‘credentials’ of being pro-poor/pro-farmer in the Union Budget for 2016-17. The Prime Minister himself went to town, calling it “pro-village, pro-poor, pro-farmer”. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) schemes was rewarded with a higher outlay, and the Pradhan mantra Krishi Yojana was announced. Will we see the revival of a similar spirit in the coming Budget? Admittedly, the task of setting right the agrarian/rural crisis is enormous, and the Government has additionally raised the bar of performance. It promised to double farmer income in five years. That and other assurances are what it will have to keep, besides offering tangible solutions, for the rural voters in the States going to polls soon. The distress, in short, has arisen from two factors. The first is that the remuneration the farmers get for their produce from Government agencies does not even on occasions cover the input cost. The second, often related to the first, is that farmers have fallen in a cycle of debt from which they are finding it exceedingly difficult to extricate themselves. Farmer suicides have only worsened an already bad situation. Then there is the difficulty of selling their produce in the markets at acceptable prices. Placating the rural voter has never been an easy task. Today, according to provisional estimates of the Central Statistics Office, agriculture accounts for less than 20 per cent of the nation’s economy — the services sector has 54 per cent while industry is close to 29 per cent. This despite the fact that 44 per cent of the country’s workforce is employed in agriculture (according to the World Bank and International Labour Organisation). The 2018-19 Union Budget is the last big chance for the Government to tweak its priorities so as to be seen as being pro-rural. Chandrababu Naidu had once lost Andhra Pradesh despite being hailed the world over for his administrative skills; the rural voter was turned off by the glitz and glamour which seemed so alien to his living conditions. In 2004, the BJP’s Indian Shining campaign failed to give the party a second consecutive chance to rule — again because rural India refused to endorse the optimism. Union Minister for Finance Arun Jaitley has a good memory. Let’s see if the lessons of the recent months and of the past years get reflected in the coming Budget. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: BJP should focus on winning rural India in Budget 2018

Stock market participants will be keenly awaiting the Union Budget to be presented on February 1 to decide their future course and will also have their eyes glued to corporate earnings, including of bluechips HDFC and ICICI Bank, this week, according to experts.

PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments.

Finance Minister Arun Jaitley will be presenting first post-GST budget on February 1, 2018. This will also be the last full budget of the ruling NDA government before the general elections of 2019.

&quot;Earnings upgrade is more likely after seeing the initial set of results but the current rich valuation and upcoming economic events may interrupt aggressive buying... The week ahead is eventful with a slew of economic data but the major event is the Union Budget and market will likely to brace more volatility,&quot; said Vinod Nair, Head of Research, Geojit Financial Services.

Among major firms scheduled to come up with their earnings this week are: HDFC, ICICI Bank, Bajaj Auto, NTPC, IOC, Reliance Communications and Tech Mahindra.

On expectations from the Budget 2018-19, IIFL Partner and Head of Research Amar Ambani said, &quot;In the last full Budget before the 2019 general elections, capital market investors would be keen to know of the government&#39;s stand on two critical issues: fiscal consolidation and tax burden on capital market investments.&quot;

&quot;Expectations are running high as it will be the first post-GST and last full-year Budget before the general elections in 2019. Markets expect government to follow fiscal prudence path and increase infrastructure and rural spending,&quot; said V K Sharma, Head Private Client Group and Capital Market Strategy, HDFC Securities.

 
Last week, the 30-share Sensex added 538.86 points, or 1.51 per cent; while the broader Nifty gathered 174.95 points, or 1.60 per cent.

PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments.

Stock market participants will be keenly awaiting the Union Budget to be presented on February 1 to decide their future course and will also have their eyes glued to corporate earnings, including of bluechips HDFC and ICICI Bank, this week, according to experts. PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments. Finance Minister Arun Jaitley will be presenting first post-GST budget on February 1, 2018. This will also be the last full budget of the ruling NDA government before the general elections of 2019. "Earnings upgrade is more likely after seeing the initial set of results but the current rich valuation and upcoming economic events may interrupt aggressive buying... The week ahead is eventful with a slew of economic data but the major event is the Union Budget and market will likely to brace more volatility," said Vinod Nair, Head of Research, Geojit Financial Services. Among major firms scheduled to come up with their earnings this week are: HDFC, ICICI Bank, Bajaj Auto, NTPC, IOC, Reliance Communications and Tech Mahindra. On expectations from the Budget 2018-19, IIFL Partner and Head of Research Amar Ambani said, "In the last full Budget before the 2019 general elections, capital market investors would be keen to know of the government's stand on two critical issues: fiscal consolidation and tax burden on capital market investments." "Expectations are running high as it will be the first post-GST and last full-year Budget before the general elections in 2019. Markets expect government to follow fiscal prudence path and increase infrastructure and rural spending," said V K Sharma, Head Private Client Group and Capital Market Strategy, HDFC Securities. Last week, the 30-share Sensex added 538.86 points, or 1.51 per cent; while the broader Nifty gathered 174.95 points, or 1.60 per cent.

Union Budget, earnings key triggers for equities this week

Ever since the Modi government has come to power in May 2014, there has been a consistent push to improve the country&#39;s infrastructure. Nitin Gadkari as Surface Transport Minister is leading the pack. Gadkari has provided amazing impetus to the highway construction pace. He is a man of action and visionary too.&nbsp;

&nbsp;

Apart from highways, Gadkari is trying to create as well as revive national waterways using the network of rivers. If realised, waterways would not only decongest highways but they will also bring down the transportation cost substantially.

&nbsp;

Apart from highways and waterways, there has been a serious initiative by Government of India (GOI) to push aviation in the country.&nbsp; In his budget speech for 2018-19, Jaitley has given a vision of expanding the airport capacity by five times of what it is today.

But it&rsquo;s not only about Budget 2018-19; Modi government has actually been working to take this sector on a different level for the past couple of years at least.

&nbsp;

Last year, GOI has come with UDAN - RCS scheme (Ude Desh ka Aam Nagrik &ndash; Regional Connectivity Scheme), wherein extraordinary impetus has been given to regional air connectivity. In the proposed scheme, airlines are bound to sell few tickets for Rs. 2500 for a journey spanning less than an hour.&nbsp; The GOI can do so as many unserved but serviceable air-strips and airport of defence services are available in the country.

&nbsp;

Despite being a burgeoning economy and second most populous country in the world, India is still nowhere in civil aviation in comparison to the developed country. In India, there are only around 500 commercial aircrafts in comparison to more than 7000 aircrafts in the USA. As on date, the USA has around seven times air passengers than that of India. China has around 4.5 times.

&nbsp;

The current push to the civil aviation sector by the Modi government is the next steps of reforms in this sector. Things as such started changing during the previous decade when the GOI decided to go for PPP (Public Private Partnership) model after sensing that Airport Authority of India (AAI) alone cannot match the required pace in this domain. Remember how Bangalore people used to struggle at highly congested and cramped old HAL airport; it was a real mess. Or the way passengers used to queue up for luggage screening at Terminal 1B in Delhi. They are now things of the past.&nbsp;

&nbsp;

The new swanky airport was commissioned in Bangalore in 2008 under PPP model, which is given a new lease of life to India&rsquo;s IT city. Subsequently, it was the turn of Terminal T3 at Delhi, new airports at Hyderabad and Mumbai, built and commissioned under the PPP model.

&nbsp;

The passenger traffic is growing by leaps and bounds in India. It is worthwhile to mention here that India&rsquo;s domestic traffic has been growing at a rate of 18 per cent per annum over the past three years. In 2017-18, the passenger footfall at Delhi would cross a whopping 60 million and it is one among the 15 busiest airports in the world.

&nbsp;

The government very well realises that a robust infrastructure is imperative for an aspiring world leader like India and aviation is one of the vital constituents of this infrastructure. Already a second greenfield airport in NCR (Delhi), Goa and Navi Mumbai have been nodded by the government, which will be a huge boost to this sector. The second airport at NCR (Jewar) is slated to start operations in 2022.

&nbsp;

Airlines are well aware of the massive growth, which is on the cards in Indian aviation industry, and they are accordingly reciprocating. The total order of new aircrafts booked for all India airlines put together is 900 plus, compare this with total 500 aircrafts that run currently.&nbsp;

&nbsp;

UDAN scheme has already started touching people&rsquo;s life. 16 airports under UDAN have already become operational. For example from Delhi, flights are now available to destinations like Shimla, Bikaner and Bhatinda.

&nbsp;

In this budget, Jaitley has proposed an augmentation of aviation infrastructure under the Nabh-Nirman scheme, which will be spearheaded by the AAI. The GOI has also provisioned Rs. 6600 crore for the sector during 2018-19, which is almost three times the budget during 2017-18. Thus, the sector is bound to get catapulted at a whole new level in days to come.

&nbsp;

The vision of GOI is clear that air connectivity needs to go up by notches and should be affordable to the very common people. It is clearly manifested in Jaitley&#39;s budget speech and commitment made by him for this sector.&nbsp;

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;

The vision of GOI is clear, air connectivity needs to go up by notches and should be affordable to the very common people.

Ever since the Modi government has come to power in May 2014, there has been a consistent push to improve the country's infrastructure. Nitin Gadkari as Surface Transport Minister is leading the pack. Gadkari has provided amazing impetus to the highway construction pace. He is a man of action and visionary too. Apart from highways, Gadkari is trying to create as well as revive national waterways using the network of rivers. If realised, waterways would not only decongest highways but they will also bring down the transportation cost substantially. Apart from highways and waterways, there has been a serious initiative by Government of India (GOI) to push aviation in the country. In his budget speech for 2018-19, Jaitley has given a vision of expanding the airport capacity by five times of what it is today. But it’s not only about Budget 2018-19; Modi government has actually been working to take this sector on a different level for the past couple of years at least. Last year, GOI has come with UDAN - RCS scheme (Ude Desh ka Aam Nagrik – Regional Connectivity Scheme), wherein extraordinary impetus has been given to regional air connectivity. In the proposed scheme, airlines are bound to sell few tickets for Rs. 2500 for a journey spanning less than an hour. The GOI can do so as many unserved but serviceable air-strips and airport of defence services are available in the country. Despite being a burgeoning economy and second most populous country in the world, India is still nowhere in civil aviation in comparison to the developed country. In India, there are only around 500 commercial aircrafts in comparison to more than 7000 aircrafts in the USA. As on date, the USA has around seven times air passengers than that of India. China has around 4.5 times. The current push to the civil aviation sector by the Modi government is the next steps of reforms in this sector. Things as such started changing during the previous decade when the GOI decided to go for PPP (Public Private Partnership) model after sensing that Airport Authority of India (AAI) alone cannot match the required pace in this domain. Remember how Bangalore people used to struggle at highly congested and cramped old HAL airport; it was a real mess. Or the way passengers used to queue up for luggage screening at Terminal 1B in Delhi. They are now things of the past. The new swanky airport was commissioned in Bangalore in 2008 under PPP model, which is given a new lease of life to India’s IT city. Subsequently, it was the turn of Terminal T3 at Delhi, new airports at Hyderabad and Mumbai, built and commissioned under the PPP model. The passenger traffic is growing by leaps and bounds in India. It is worthwhile to mention here that India’s domestic traffic has been growing at a rate of 18 per cent per annum over the past three years. In 2017-18, the passenger footfall at Delhi would cross a whopping 60 million and it is one among the 15 busiest airports in the world. The government very well realises that a robust infrastructure is imperative for an aspiring world leader like India and aviation is one of the vital constituents of this infrastructure. Already a second greenfield airport in NCR (Delhi), Goa and Navi Mumbai have been nodded by the government, which will be a huge boost to this sector. The second airport at NCR (Jewar) is slated to start operations in 2022. Airlines are well aware of the massive growth, which is on the cards in Indian aviation industry, and they are accordingly reciprocating. The total order of new aircrafts booked for all India airlines put together is 900 plus, compare this with total 500 aircrafts that run currently. UDAN scheme has already started touching people’s life. 16 airports under UDAN have already become operational. For example from Delhi, flights are now available to destinations like Shimla, Bikaner and Bhatinda. In this budget, Jaitley has proposed an augmentation of aviation infrastructure under the Nabh-Nirman scheme, which will be spearheaded by the AAI. The GOI has also provisioned Rs. 6600 crore for the sector during 2018-19, which is almost three times the budget during 2017-18. Thus, the sector is bound to get catapulted at a whole new level in days to come. The vision of GOI is clear that air connectivity needs to go up by notches and should be affordable to the very common people. It is clearly manifested in Jaitley's budget speech and commitment made by him for this sector. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: To be a world power India needs a world-class civil aviation sector

Left parties in Andhra Pradesh have called for a state-wide bandh on Thursday to protest against the &ldquo;anti-people&rdquo; Union Budget 2018. Alleging that huge sums were given to other states because of the upcoming polls, the parties slammed the Centre for the &ldquo;injustice&rdquo; meted out to Andhra Pradesh.

In a press release jointly issued by the Communist Party of India, the Communist Party of India (Marxist) and the Communist Party of India (Marxist-Leninist) as well as students&rsquo; and labour organisations, people have been asked to participate in large numbers to make the bandh a success. They also added that the budget this year neglected the rural economy.

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<blockquote class="twitter-tweet" data-lang="en">
Visakhapatnam: Bandh called by Left parties in protest against <a href="https://twitter.com/hashtag/UnionBudget2018?src=hash&amp;ref_src=twsrc%5Etfw">#UnionBudget2018</a> <a href="https://twitter.com/hashtag/AndhraPradesh?src=hash&amp;ref_src=twsrc%5Etfw">#AndhraPradesh</a> <a href="https://t.co/LnZYfIJyMZ">pic.twitter.com/LnZYfIJyMZ</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/961424534439186432?ref_src=twsrc%5Etfw">February 8, 2018</a></blockquote>
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The auto union also extended their support for the bandh. A few auto drivers said that they would support the bandh and stay off the roads for some time, reports said.&nbsp;

Auto services may also be hit as a part of the ongoing protests with the union extending its support.&nbsp;

More than 1300 APSRTC buses have been stopped in Visakhapatnam, reported news agency ANI.&nbsp;

The Congress and YSRCP parties are also likely to take part in the protest.&nbsp;

Auto union also extended their support for the bandh. A few auto drivers said that they would support the bandh and stay off the roads for some time, reports said.

Left parties in Andhra Pradesh have called for a state-wide bandh on Thursday to protest against the “anti-people” Union Budget 2018. Alleging that huge sums were given to other states because of the upcoming polls, the parties slammed the Centre for the “injustice” meted out to Andhra Pradesh. In a press release jointly issued by the Communist Party of India, the Communist Party of India (Marxist) and the Communist Party of India (Marxist-Leninist) as well as students’ and labour organisations, people have been asked to participate in large numbers to make the bandh a success. They also added that the budget this year neglected the rural economy. Visakhapatnam: Bandh called by Left parties in protest against #UnionBudget2018 #AndhraPradesh pic.twitter.com/LnZYfIJyMZ — ANI (@ANI) February 8, 2018 × The auto union also extended their support for the bandh. A few auto drivers said that they would support the bandh and stay off the roads for some time, reports said. Auto services may also be hit as a part of the ongoing protests with the union extending its support. More than 1300 APSRTC buses have been stopped in Visakhapatnam, reported news agency ANI. The Congress and YSRCP parties are also likely to take part in the protest.

Left parties in Andhra Pradesh call for shutdown to protest 'Union Budget'

Stocks across the world are in a funk and how!&nbsp; 
&nbsp;

And your take your pick on who to blame it on: Rising US wages; India&#39;s Finance Minister Arun Jaitley introducing the long-term capital gains tax on equities; Foreign investors finding valuations a trifle too high or just plain old profit booking after a significant event ends (India&#39;s annual budget).

&nbsp;

It was Black Monday today after India&#39;s benchmark Nifty Index plunged 5.7 percent or 378 points to a 7-week low in early deals. Panic was strewn across Asian markets in the morning after the US Dow Index dropped 4.5 percent, overnight, on news that US salaries rose by the highest since 2009. That means inflation is likely to raise its head in America and that may prompt the U.S. Federal Reserve to hike interest rates more aggressively. Rising interest costs mean that companies&#39; earnings may be at risk, and that triggered an across-the-board sell-off in equities.

&nbsp;

So, what should you be doing? Kahani abhi baaki hai, mere dost! Read on:

&nbsp;

The selling contagion landed on Indian shores today, in a market that barely fell for 4 days between Dec 1st, 2017 and Jan 31st, 2018. A total of 42 sessions saw the Nifty surge 9 percent. These kind of gains are rare and need to be pocketed.

&nbsp;

Therefore, Monday&#39;s sell-off has to be seen against this background. This unreasonable jump in equity prices, driven by robust liquidity and in a broad absence of strong earnings growth, had to moderated. The sell-off on Wall Street provided just that.

&nbsp;

As a consequence, the Nifty dropped 1.6 percent, or 168 points, to 10,498 points. All 35 sector and broad market indices ended lower between 1.5- 3.2 percent. Stocks are down for the sixth day in a row on disappointments related to the budget. The Sensex, too, shed 561 points at 34,195.

&nbsp;

I believe the selling is here to stay for a while as the fluff still remains in large parts of the market. Sustained buoyancy and optimism had seen the Nifty, the mid cap and the small cap indices surging between 29-40 percent during 2017 as thousands of crores of rupees poured into systematic investment plans of mutual funds every month.

&nbsp;

Nimble traders and savvy investors, therefore, were looking for a reason to sell and that came in the reintroduction of Long Term Capital Gains Tax of 10 percent deployed on sales of shares held for more than one year. Some investors also found the budget math awry and pressed sales on front line stocks. There are chances that the market may settle down in the 10,000-10,400 range for next month or so as investors rework their excel sheets on earnings expectations.&nbsp;

&nbsp;

So, how should you tackle this volatility?&nbsp;

&nbsp;

1. Uncertainty is here to stay till clarifications emerge on how the Long Term Capital Gains Tax is implemented. From the face of it, the tax does not allow indexation of purchases and that is a dampener. I see more steam coming out of the market as investors take profit away from the table ahead of April 1, when the new budget proposals come into effect.

&nbsp;

2. If you are a long term investor and you have your SIPs in place with good quality equity diversified funds, DO NOTHING. Relax, India&#39;s growth story in not dented. Just wait for the volatility to pass away and stick to your investment philosophy of buying stocks each month. Brave investors can put in an extra SIP this month to average costs lower.&nbsp;

&nbsp;

3. If you haven&#39;t started investing, this is the right time. Buy a simple equity diversified fund and put in a SIP. Choose the Direct route and don&#39;t go through an advisor. Contact the asset management company directly. It takes less than 5 minutes and the returns, or 10 years, are far higher. Trust me.

&nbsp;

4. If you are a trader, then I hope The Good Lord is with you!

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

Uncertainty is here to stay till clarifications emerge on how the Long Term Capital Gains Tax is implemented.

Stocks across the world are in a funk and how! And your take your pick on who to blame it on: Rising US wages; India's Finance Minister Arun Jaitley introducing the long-term capital gains tax on equities; Foreign investors finding valuations a trifle too high or just plain old profit booking after a significant event ends (India's annual budget). It was Black Monday today after India's benchmark Nifty Index plunged 5.7 percent or 378 points to a 7-week low in early deals. Panic was strewn across Asian markets in the morning after the US Dow Index dropped 4.5 percent, overnight, on news that US salaries rose by the highest since 2009. That means inflation is likely to raise its head in America and that may prompt the U.S. Federal Reserve to hike interest rates more aggressively. Rising interest costs mean that companies' earnings may be at risk, and that triggered an across-the-board sell-off in equities. So, what should you be doing? Kahani abhi baaki hai, mere dost! Read on: The selling contagion landed on Indian shores today, in a market that barely fell for 4 days between Dec 1st, 2017 and Jan 31st, 2018. A total of 42 sessions saw the Nifty surge 9 percent. These kind of gains are rare and need to be pocketed. Therefore, Monday's sell-off has to be seen against this background. This unreasonable jump in equity prices, driven by robust liquidity and in a broad absence of strong earnings growth, had to moderated. The sell-off on Wall Street provided just that. As a consequence, the Nifty dropped 1.6 percent, or 168 points, to 10,498 points. All 35 sector and broad market indices ended lower between 1.5- 3.2 percent. Stocks are down for the sixth day in a row on disappointments related to the budget. The Sensex, too, shed 561 points at 34,195. I believe the selling is here to stay for a while as the fluff still remains in large parts of the market. Sustained buoyancy and optimism had seen the Nifty, the mid cap and the small cap indices surging between 29-40 percent during 2017 as thousands of crores of rupees poured into systematic investment plans of mutual funds every month. Nimble traders and savvy investors, therefore, were looking for a reason to sell and that came in the reintroduction of Long Term Capital Gains Tax of 10 percent deployed on sales of shares held for more than one year. Some investors also found the budget math awry and pressed sales on front line stocks. There are chances that the market may settle down in the 10,000-10,400 range for next month or so as investors rework their excel sheets on earnings expectations. So, how should you tackle this volatility? 1. Uncertainty is here to stay till clarifications emerge on how the Long Term Capital Gains Tax is implemented. From the face of it, the tax does not allow indexation of purchases and that is a dampener. I see more steam coming out of the market as investors take profit away from the table ahead of April 1, when the new budget proposals come into effect. 2. If you are a long term investor and you have your SIPs in place with good quality equity diversified funds, DO NOTHING. Relax, India's growth story in not dented. Just wait for the volatility to pass away and stick to your investment philosophy of buying stocks each month. Brave investors can put in an extra SIP this month to average costs lower. 3. If you haven't started investing, this is the right time. Buy a simple equity diversified fund and put in a SIP. Choose the Direct route and don't go through an advisor. Contact the asset management company directly. It takes less than 5 minutes and the returns, or 10 years, are far higher. Trust me. 4. If you are a trader, then I hope The Good Lord is with you! (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: What causes the downward spiral of India's stock market

As Government of India crafts India&rsquo;s first National Employment Policy and announces scrapping of all jobs lying vacant for five or more years, it signals a positive outlook towards creation of a more robust job market for India.

&nbsp;

With increasing thrust on technology and skills development,&nbsp;India&rsquo;s&nbsp;job&nbsp;market&nbsp;is on an upswing for FY 2018-19.&nbsp;By 2020, around 600 million people are expected to get deployed in newer&nbsp;job&nbsp;roles that do not exist today.&nbsp;

&nbsp;

Our economy is growing at a reasonable pace. As market recovers, focus on specialised skills will be in demand in near future.&nbsp;There is no doubt, that volume of&nbsp;jobs&nbsp;is being impacted by automation, however, new&nbsp;jobs&nbsp;are also being created.&nbsp;

&nbsp;

With increased focus on re-skilling, the traditional job market is undergoing a transformation.&nbsp;India will be the third most optimistic market for skilled candidates.&nbsp;Indian job seekers have a&nbsp;sigh of relief,&nbsp;as the hiring prospects are expected to rebound.

&nbsp;

According&nbsp;to RecruitEX&nbsp;bi-annual reports, internet and disruptive technologies are creating new employment opportunities, particularly, in the areas of &lsquo;white-collar&rsquo; jobs.&nbsp;

&nbsp;

Industry&rsquo;s focus on fresh&nbsp;hires is&nbsp;pre-dominantly around new digital tools and services.&nbsp;As per reports,&nbsp;online labour, software developers, creative and multimedia&nbsp;professionals,&nbsp;online&nbsp;sales and marketing&nbsp;professionals, writers, translators, data entry operators and more are expected to&nbsp;see&nbsp;a surge in demand.

&nbsp;

Announcements in the education&nbsp;sector, with focus on improving infrastructure and quality, teachers&rsquo; training, blackboards to digital boards amongst others are positive steps towards skill enhancement.&nbsp;

By 2020, majority workforce in IT, Auto, Healthcare, Banks and Financial institutions are expected to work with completely different skill sets.&nbsp;

&nbsp;

Future job opportunities will be high in newer skillsets related to Data Scientists, Data Mining, Artificial Intelligence, Internet of Things, etc.

&nbsp;

With the current&nbsp;positive&nbsp;outlook&nbsp;for&nbsp;the economy, employers are&nbsp;certain&nbsp;to&nbsp;create&nbsp;more&nbsp;jobs.&nbsp;Large&nbsp;enterprises, medium and small&nbsp;scale&nbsp;industries are designed to&nbsp;scale&nbsp;higher and become major&nbsp;job&nbsp;providers.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

By 2020, around 600 million people are expected to get deployed in newer job roles that do not exist today.

As Government of India crafts India’s first National Employment Policy and announces scrapping of all jobs lying vacant for five or more years, it signals a positive outlook towards creation of a more robust job market for India. With increasing thrust on technology and skills development, India’s job market is on an upswing for FY 2018-19. By 2020, around 600 million people are expected to get deployed in newer job roles that do not exist today. Our economy is growing at a reasonable pace. As market recovers, focus on specialised skills will be in demand in near future. There is no doubt, that volume of jobs is being impacted by automation, however, new jobs are also being created. With increased focus on re-skilling, the traditional job market is undergoing a transformation. India will be the third most optimistic market for skilled candidates. Indian job seekers have a sigh of relief, as the hiring prospects are expected to rebound. According to RecruitEX bi-annual reports, internet and disruptive technologies are creating new employment opportunities, particularly, in the areas of ‘white-collar’ jobs. Industry’s focus on fresh hires is pre-dominantly around new digital tools and services. As per reports, online labour, software developers, creative and multimedia professionals, online sales and marketing professionals, writers, translators, data entry operators and more are expected to see a surge in demand. Announcements in the education sector, with focus on improving infrastructure and quality, teachers’ training, blackboards to digital boards amongst others are positive steps towards skill enhancement. By 2020, majority workforce in IT, Auto, Healthcare, Banks and Financial institutions are expected to work with completely different skill sets. Future job opportunities will be high in newer skillsets related to Data Scientists, Data Mining, Artificial Intelligence, Internet of Things, etc. With the current positive outlook for the economy, employers are certain to create more jobs. Large enterprises, medium and small scale industries are designed to scale higher and become major job providers. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: National Employment Policy will create robust job market for India

The Indian middle class is very unhappy with Budget 2018 as they feel that the government has abandoned them by not providing any specific exemptions. Most believe that a reduction in taxes would have made them happier. Taxation is something that people definitely don&rsquo;t agree with, as most of us think that the government is a cumbersome, lethargic and inefficient beast. And, let&rsquo;s be honest, the government administration is the most responsible for this loss of trust. Their performance in the delivery of public goods to the citizens has been just horrible.&nbsp;

&nbsp;

Let us have a look at what all this mistrust has ended up creating in the society. Entirely new sectors were created because of this mistrust, and now we have started measuring our GDP based on how these sectors perform!! Shocking? No.

&nbsp;

Power sector: For the 70+ years since independence, we have always faced a shortfall in power supply. Investments made by public sector have always been deficient. Regulations for private investments in power generation, distribution and transmission were highly restrictive.&nbsp; The private firms still stepped in. By producing diesel generators (and then inverters). Hi-tech research and design in generators and inverters enabled the citizens of the country to avail of a reliable power supply using these measures. And as is the case for any public good, such private investments were sub-optimal and inefficient in their own way, but at least they achieved the end objective.

&nbsp;

Air Pollution: Over decades, governments have created and modified emission regulations aimed at controlling pollution. All those regulations have only ended up providing rent-seeking opportunities for greedy bureaucrats and have barely made a blip on the pollution scale. Private firms stepped in again. One set of them handled bureaucrats for errant firms (fixers), and another set of them launched air purifiers for the consumers.&nbsp;

&nbsp;

Water Supply: Jal boards were set up in all cities to provide potable drinking water to the citizens. Decades went by, but some bureaucrat thought it was more important to let the administration know how important potable drinking water for citizens (so that a higher budget could be asked for) by hiring more staff to print reports on effects of impure drinking water than investing in personnel and equipment that would actually do so. Private firms thrived by first supplying tankers for providing water and then by supplying water filters and purifiers that would actually address the real need of the citizens.&nbsp;

&nbsp;

Transportation: This actually gets interesting. Reliable, affordable public transport is a dream for Indians. Buses are in dilapidated conditions, never on time and in some cases, frequently on strike! Private firms step in to provide cars and bikes for transportation. Public spending in infrastructure still lags, resulting in traffic snarls and exhausting rides to work. Tech comes in and cab aggregators step in. Cab aggregators address supply-demand mismatch using price as a signal (surge pricing!). So, now government steps in saying surge pricing is unfair to customers! Why did this need ever rise?

&nbsp;

Education: Public firms came up with glorious ideas of IIT-JEE, NEET, CAT, UPSC and more for higher education and government services. Unfortunately, public firms forgot about primary and secondary education. Private firms have stepped up again. Private schools prospered and coaching classes were set up in every nook and corner of the country. The government now attempted to regulate the schools via RTE and further worsened the situation. How the lopsided RTE norms and entrance examination system has corrupted our education system is clearly evident all around us.&nbsp;

&nbsp;

Food grain distribution: Government set out with the noble intention of providing subsidised food grains to the society. The scheme took many shapes over decades. Rampant corruption in the system ensured that the scheme rarely benefited anyone. Its inadequacy in terms of quality, as well as quantity, forced citizens to turn to the private markets for their needs. The government still continues this and has an entire corporation dedicated to it employing 23000 people!

&nbsp;

Railway ticketing: A monopoly that is running in losses. Possibly the only one of its kind in the world. For decades, investments in railways have suffered restricting the overall supply of track capacity. In a vast country like India, trains remained the only way to reach far-off destinations. Limited seats were available. Variety of quotas existed. Private help, in terms of touts, arrived claiming access to seats. Seats were traded for exorbitant fares. Even now, quotas abound. How else would a bureaucrat show his importance to someone than by giving a friend/relative a seat on a train?&nbsp;

&nbsp;

RTO Licensing: A simple procedure was made complicated to deter people from applying for a license directly at the RTO for a driving license. Brokers mushroomed out of nowhere willing to provide a license at your doorstep, for a small fee. Purpose of licensing failed, as seen by the quality of driving on our roads.&nbsp;

&nbsp;

Waste Management: A public good essential for ensuring safe health for citizens, especially in times of epidemics. Public waste management organisations still meander along with ages-old mechanisms of disposing waste. Waste management technology in other countries advanced in leaps and bounds. Private firms have attempted to step in here. How long before the government regulates them into bankruptcy?

&nbsp;

There are countless such examples! Healthcare is an area that is better not ventured into. The judicial system is a big mess. Agriculture has been a bane for all governments. And all of this has influenced our economy and the country so much that we have now started defining our progress by how much profits these firms can make!&nbsp;

&nbsp;

Imagine a hypothetical scenario wherein, tomorrow, all tier-1 and tier-2 cities in India have an efficient, affordable and reliable public transportation system! Citizens would not have to use private transport. But how would that be reported? They would lament the losses that the automobile manufacturers and their ancillaries have to face, how the petrol pumps aren&rsquo;t finding retail customers, how the automotive repair industry has come to a near standstill and many more! But would it be good for the nation? Yes! Would our cities be cleaner and peaceful? Yes! That&rsquo;s exactly how badly successive governments have performed in India.

&nbsp;

Governments, over decades, have done a disservice to the nation in their delivery of services. And through absurd regulations has made it difficult (if not impossible) for private firms to function, without doling out substantial rent to the bureaucrats! If I, as a citizen, find my tax rupees being squandered away in such ways, would I be willing to pay more tax? NO.

&nbsp;

A natural outcome of all the above examples is a mistrust with the government and public administration.&nbsp; Surprisingly, this mistrust still doesn&rsquo;t stop the public from asking for government intervention in many spheres! We still want governments to intervene when schools charge fees, farmers commit suicide, hospitals overcharge patients and more! Do we really expect an entity that has failed to perform a decent job in nearly all aspects of its deliverables to magically transform overnight?&nbsp;

&nbsp;

Yes, our administration is overstaffed, but not where we actually need them to be. There are public servants doing jobs that ought not to exist. For law and order, we need more police on the ground. For swift justice, we need more judges in courts. All of these needs substantial funds. A part of it could be adjusted for by rationalization of current resources. But the rest would have to be funded via taxes. As a citizen, taxation is unavoidable. Asking for accountability from the government is possibly the only way out.&nbsp;

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

&nbsp;

Taxation is something that people definitely don’t agree with, as most of us think that the government is a cumbersome, lethargic and an inefficient beast.

The Indian middle class is very unhappy with Budget 2018 as they feel that the government has abandoned them by not providing any specific exemptions. Most believe that a reduction in taxes would have made them happier. Taxation is something that people definitely don’t agree with, as most of us think that the government is a cumbersome, lethargic and inefficient beast. And, let’s be honest, the government administration is the most responsible for this loss of trust. Their performance in the delivery of public goods to the citizens has been just horrible. Let us have a look at what all this mistrust has ended up creating in the society. Entirely new sectors were created because of this mistrust, and now we have started measuring our GDP based on how these sectors perform!! Shocking? No. Power sector: For the 70+ years since independence, we have always faced a shortfall in power supply. Investments made by public sector have always been deficient. Regulations for private investments in power generation, distribution and transmission were highly restrictive. The private firms still stepped in. By producing diesel generators (and then inverters). Hi-tech research and design in generators and inverters enabled the citizens of the country to avail of a reliable power supply using these measures. And as is the case for any public good, such private investments were sub-optimal and inefficient in their own way, but at least they achieved the end objective. Air Pollution: Over decades, governments have created and modified emission regulations aimed at controlling pollution. All those regulations have only ended up providing rent-seeking opportunities for greedy bureaucrats and have barely made a blip on the pollution scale. Private firms stepped in again. One set of them handled bureaucrats for errant firms (fixers), and another set of them launched air purifiers for the consumers. Water Supply: Jal boards were set up in all cities to provide potable drinking water to the citizens. Decades went by, but some bureaucrat thought it was more important to let the administration know how important potable drinking water for citizens (so that a higher budget could be asked for) by hiring more staff to print reports on effects of impure drinking water than investing in personnel and equipment that would actually do so. Private firms thrived by first supplying tankers for providing water and then by supplying water filters and purifiers that would actually address the real need of the citizens. Transportation: This actually gets interesting. Reliable, affordable public transport is a dream for Indians. Buses are in dilapidated conditions, never on time and in some cases, frequently on strike! Private firms step in to provide cars and bikes for transportation. Public spending in infrastructure still lags, resulting in traffic snarls and exhausting rides to work. Tech comes in and cab aggregators step in. Cab aggregators address supply-demand mismatch using price as a signal (surge pricing!). So, now government steps in saying surge pricing is unfair to customers! Why did this need ever rise? Education: Public firms came up with glorious ideas of IIT-JEE, NEET, CAT, UPSC and more for higher education and government services. Unfortunately, public firms forgot about primary and secondary education. Private firms have stepped up again. Private schools prospered and coaching classes were set up in every nook and corner of the country. The government now attempted to regulate the schools via RTE and further worsened the situation. How the lopsided RTE norms and entrance examination system has corrupted our education system is clearly evident all around us. Food grain distribution: Government set out with the noble intention of providing subsidised food grains to the society. The scheme took many shapes over decades. Rampant corruption in the system ensured that the scheme rarely benefited anyone. Its inadequacy in terms of quality, as well as quantity, forced citizens to turn to the private markets for their needs. The government still continues this and has an entire corporation dedicated to it employing 23000 people! Railway ticketing: A monopoly that is running in losses. Possibly the only one of its kind in the world. For decades, investments in railways have suffered restricting the overall supply of track capacity. In a vast country like India, trains remained the only way to reach far-off destinations. Limited seats were available. Variety of quotas existed. Private help, in terms of touts, arrived claiming access to seats. Seats were traded for exorbitant fares. Even now, quotas abound. How else would a bureaucrat show his importance to someone than by giving a friend/relative a seat on a train? RTO Licensing: A simple procedure was made complicated to deter people from applying for a license directly at the RTO for a driving license. Brokers mushroomed out of nowhere willing to provide a license at your doorstep, for a small fee. Purpose of licensing failed, as seen by the quality of driving on our roads. Waste Management: A public good essential for ensuring safe health for citizens, especially in times of epidemics. Public waste management organisations still meander along with ages-old mechanisms of disposing waste. Waste management technology in other countries advanced in leaps and bounds. Private firms have attempted to step in here. How long before the government regulates them into bankruptcy? There are countless such examples! Healthcare is an area that is better not ventured into. The judicial system is a big mess. Agriculture has been a bane for all governments. And all of this has influenced our economy and the country so much that we have now started defining our progress by how much profits these firms can make! Imagine a hypothetical scenario wherein, tomorrow, all tier-1 and tier-2 cities in India have an efficient, affordable and reliable public transportation system! Citizens would not have to use private transport. But how would that be reported? They would lament the losses that the automobile manufacturers and their ancillaries have to face, how the petrol pumps aren’t finding retail customers, how the automotive repair industry has come to a near standstill and many more! But would it be good for the nation? Yes! Would our cities be cleaner and peaceful? Yes! That’s exactly how badly successive governments have performed in India. Governments, over decades, have done a disservice to the nation in their delivery of services. And through absurd regulations has made it difficult (if not impossible) for private firms to function, without doling out substantial rent to the bureaucrats! If I, as a citizen, find my tax rupees being squandered away in such ways, would I be willing to pay more tax? NO. A natural outcome of all the above examples is a mistrust with the government and public administration. Surprisingly, this mistrust still doesn’t stop the public from asking for government intervention in many spheres! We still want governments to intervene when schools charge fees, farmers commit suicide, hospitals overcharge patients and more! Do we really expect an entity that has failed to perform a decent job in nearly all aspects of its deliverables to magically transform overnight? Yes, our administration is overstaffed, but not where we actually need them to be. There are public servants doing jobs that ought not to exist. For law and order, we need more police on the ground. For swift justice, we need more judges in courts. All of these needs substantial funds. A part of it could be adjusted for by rationalization of current resources. But the rest would have to be funded via taxes. As a citizen, taxation is unavoidable. Asking for accountability from the government is possibly the only way out. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Why citizens dislike paying taxes

The TDP today said its alliance with the BJP in Andhra Pradesh and the Centre was very much alive, following speculation that the party was disgruntled over the &quot;raw deal&quot; that the state got in the Union Budget.

TDP leader and Union minister Y Satyanarayana Chowdary briefed the media this afternoon about deliberations at a meeting convened by Chief Minister Chandrababu Naidu on the Union Budget.

&quot;As and when it is required, the chief minister and party chief will take the decision appropriately. As of today, it (the alliance) is just going on. We never said (about snapping ties)...It&#39;s all speculation,&quot; he said here.

&quot;Our state is in a disadvantageous position due to the bifurcation (of united Andhra Pradesh). People are dissatisfied because there is no specific mention of state issues in the Union Budget. All this was discussed,&quot; Chowdary said.

The meeting was attended by party MPs, a few state ministers, senior TDP leaders and senior bureaucrats.

&quot;We have already taken up the issues with the Union Finance Minister, Railway Minister (on setting up a railway zone in Visakhapatnam). Definitely, in the next 2-3 days we are hopeful everything will be resolved,&quot; he added.

Chowdary added that the TDP would raise the state&#39;s demands, if required, in Parliament.

Some of the issues over which the TDP is miffed are the implementation of a special financial package for the state, setting up of a railway zone, deficit finance and schemes related to the development of Amaravati as the state capital.

&quot;People (of Andhra Pradesh) are looking forward with anticipation. They (the Centre) have done something, but much more needs to be done. We will discuss these things in the next two-three days and try to work out a solution,&quot; Chowdary added.

&quot;If required we will protest inside Parliament. We are discussing specific points. If we don&#39;t get clarity, definitely we will protest inside Parliament during the (Budget) session,&quot; the Union minister said.

Asked if the two TDP ministers in the Union Cabinet were ready to resign if the state&#39;s demands were not met, Chowdary said, &quot;As and when it is required, our CM and party president will take appropriate decision.&quot;

&quot;I suggest the media should never anticipate, or think of, a divorce. You should think only of marriage,&quot; Chowdary said when asked if a &quot;divorce&quot; with the BJP was imminent.

Asked if BJP chief Amit Shah spoke with Naidu (after reports about TDP&#39;s resentment started doing rounds), Chowdary replied in the negative.

Nor did Naidu speak to Shiv Sena chief Uddhav Thackeray, BJP&#39;s bickering ally in Maharashtra, as some media reports claimed, he said.&nbsp;

The meeting was attended by party MPs, a few state ministers, senior TDP leaders and senior bureaucrats.

The TDP today said its alliance with the BJP in Andhra Pradesh and the Centre was very much alive, following speculation that the party was disgruntled over the "raw deal" that the state got in the Union Budget. TDP leader and Union minister Y Satyanarayana Chowdary briefed the media this afternoon about deliberations at a meeting convened by Chief Minister Chandrababu Naidu on the Union Budget. "As and when it is required, the chief minister and party chief will take the decision appropriately. As of today, it (the alliance) is just going on. We never said (about snapping ties)...It's all speculation," he said here. "Our state is in a disadvantageous position due to the bifurcation (of united Andhra Pradesh). People are dissatisfied because there is no specific mention of state issues in the Union Budget. All this was discussed," Chowdary said. The meeting was attended by party MPs, a few state ministers, senior TDP leaders and senior bureaucrats. "We have already taken up the issues with the Union Finance Minister, Railway Minister (on setting up a railway zone in Visakhapatnam). Definitely, in the next 2-3 days we are hopeful everything will be resolved," he added. Chowdary added that the TDP would raise the state's demands, if required, in Parliament. Some of the issues over which the TDP is miffed are the implementation of a special financial package for the state, setting up of a railway zone, deficit finance and schemes related to the development of Amaravati as the state capital. "People (of Andhra Pradesh) are looking forward with anticipation. They (the Centre) have done something, but much more needs to be done. We will discuss these things in the next two-three days and try to work out a solution," Chowdary added. "If required we will protest inside Parliament. We are discussing specific points. If we don't get clarity, definitely we will protest inside Parliament during the (Budget) session," the Union minister said. Asked if the two TDP ministers in the Union Cabinet were ready to resign if the state's demands were not met, Chowdary said, "As and when it is required, our CM and party president will take appropriate decision." "I suggest the media should never anticipate, or think of, a divorce. You should think only of marriage," Chowdary said when asked if a "divorce" with the BJP was imminent. Asked if BJP chief Amit Shah spoke with Naidu (after reports about TDP's resentment started doing rounds), Chowdary replied in the negative. Nor did Naidu speak to Shiv Sena chief Uddhav Thackeray, BJP's bickering ally in Maharashtra, as some media reports claimed, he said.

Alliance with BJP on, says TDP on reports of rift with BJP over 'raw deal' in Union Budget

The Modi government has decided to allocate each of country&#39;s milk-producing cows a unique identity card&nbsp;or UID just like the 12-digit Aadhaar number for individuals.&nbsp;

The Union Budget 2018 set a target of Rs 50 crore for the completion of the project and cover about 40 million cows.&nbsp;

A dairy department official said the agriculture ministry, has already acquired the UID technology that comes with a cheap, tamper-proof polyurethane tag containing the cow&rsquo;s biological details such as breed, age, sex, height and special body marks. Each card will cost between Rs 8 and Rs 10.

The UID scheme will be called Pashu Sanjivini which is said to be a part of a larger programme for the dairy and fisheries sectors.

In a budget speech seen as pro-poor, finance minister Arun Jaitley on Thursday announced a Fisheries and Aquaculture Infrastructure Development Fund and an Animal Husbandry Infrastructure Development Fund worth Rs10,000 crore. About Rs200 crore has been set aside for an artificial insemination drive to improve cattle breeds, with an aim to &ldquo;upgrade&rdquo; the nation&rsquo;s entire cattle population.

In 2015, a government committee had recommended UID for cows to prevent trafficking following a Supreme Court direction that heard a plea to stop cattle smuggling.

According to the 2015 expert committee&rsquo;s recommendations, owners of cattle will be responsible for registration. &ldquo;Registration proof must be maintained by the owner of the cattle which may be transferred to the next owner in case a legitimate sale/transfer takes place,&rdquo; it had stated.

The Union Budget 2018 set a target of Rs 50 crore for the completion of the project and cover about 40 million cows

The Modi government has decided to allocate each of country's milk-producing cows a unique identity card or UID just like the 12-digit Aadhaar number for individuals. The Union Budget 2018 set a target of Rs 50 crore for the completion of the project and cover about 40 million cows. A dairy department official said the agriculture ministry, has already acquired the UID technology that comes with a cheap, tamper-proof polyurethane tag containing the cow’s biological details such as breed, age, sex, height and special body marks. Each card will cost between Rs 8 and Rs 10. The UID scheme will be called Pashu Sanjivini which is said to be a part of a larger programme for the dairy and fisheries sectors. In a budget speech seen as pro-poor, finance minister Arun Jaitley on Thursday announced a Fisheries and Aquaculture Infrastructure Development Fund and an Animal Husbandry Infrastructure Development Fund worth Rs10,000 crore. About Rs200 crore has been set aside for an artificial insemination drive to improve cattle breeds, with an aim to “upgrade” the nation’s entire cattle population. In 2015, a government committee had recommended UID for cows to prevent trafficking following a Supreme Court direction that heard a plea to stop cattle smuggling. According to the 2015 expert committee’s recommendations, owners of cattle will be responsible for registration. “Registration proof must be maintained by the owner of the cattle which may be transferred to the next owner in case a legitimate sale/transfer takes place,” it had stated.

Government to assign UID to 40 million cows

The national <a href="http://www.wionews.com/business-economy/dont-know-about-obamacare-but-modicare-can-definitely-become-successful-jaitley-31525">health protection scheme announced </a>in the Union Budget 2018 on Thursday will be implemented from October 2, reports said.

A Niti Ayog official said the health insurance scheme proposed in the Budget will cost Rs 10,000-12,000 crore.

<a href="http://www.wionews.com/business-economy/stress-in-farm-sector-is-real-jaitley-says-day-after-budget-31551">Also Read: Stress in farm sector is real, Jaitley says day after Budget</a>

The annual<a href="http://www.wionews.com/business-economy/live-union-budget-2018-finance-minister-arun-jaitley-presents-budget-in-parliament-31380"> premium will range between</a> Rs 1,000-1,200 per family, the official added.

The national health care policy announced in the Union Budget by finance minister aims to be the &quot;world&#39;s largest publicly-funded healthcare programme&quot;.

The plan is expected to cover around 50 crore people.

The newly unveiled policy offers Rs 5 lakh cover per family annually for secondary and tertiary care hospitalisation.

The finance minister had committed Rs 1,200 crore for the National Health Policy which would be used towards bringing up 1.5 lakh health and wellness centres.

&nbsp;

The plan is expected to cover around 50 crore people.

The national health protection scheme announced in the Union Budget 2018 on Thursday will be implemented from October 2, reports said. A Niti Ayog official said the health insurance scheme proposed in the Budget will cost Rs 10,000-12,000 crore. Also Read: Stress in farm sector is real, Jaitley says day after Budget The annual premium will range between Rs 1,000-1,200 per family, the official added. The national health care policy announced in the Union Budget by finance minister aims to be the "world's largest publicly-funded healthcare programme". The plan is expected to cover around 50 crore people. The newly unveiled policy offers Rs 5 lakh cover per family annually for secondary and tertiary care hospitalisation. The finance minister had committed Rs 1,200 crore for the National Health Policy which would be used towards bringing up 1.5 lakh health and wellness centres.

Budget 2018: Govt's landmark national health scheme to be implemented from October 2

Finance Minister Aruj Jaitley has described this year&#39;s Union Budget as &ldquo;popular, and not populist&rdquo;.&nbsp;

In an exclusive interview to Zee Business, Jaitley said, &ldquo;This Budget was one of the most challenging ones for me. Among the big challenges I had were: How to maintain the fiscal deficit, GDP had slowed down in the past but has now picked up. So how to maintain that growth momentum? Which areas to prioritise etc.&rdquo;

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/budget-2018-govts-landmark-national-health-scheme-to-be-implemented-from-october-2nd-31610">Budget 2018: Govt&#39;s landmark national health scheme to be implemented from October 2</a>

The interview comes days after Jaitley presented the Union Budget where he announced an ambitious project of providing health insurance to nearly 40 crore population of the country. The government, Jaitley said in Parliament, will provide Rs 5 lakh health insurance to 10 crore poor and vulnerable families in &ldquo;world&rsquo;s largest health care programme&rdquo;.

The Ayushman Bharat Programme, which is being dubbed as &ldquo;Modicare&rdquo;, is being compared with Obamacare, the comprehensive health programme launched by former US president Barack Obama.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/india-went-from-fragile-five-economies-to-fastest-growing-five-jaitley-31425">India went from fragile five economies to fastest-growing five, says Jaitley</a>

&ldquo;These 40 crore poor people have nothing for them. If they or any of their family members fall ill, they only have government hospitals to go to. By providing this comprehensive healthcare scheme, the government is empowering the poor,&rdquo; Jaitley said.

He added, &ldquo;This year&rsquo;s Budget was different than previous years. Our purpose was to consolidate the gains we made in previous years. And we wanted to analyse the areas where we were lagging behind.&rdquo;

In the Budget, Jaitley emphasised that his government&rsquo;s focus is on the agricultural sector and for the benefit of farmers, it was announced that the Minimum Support Price (MSP) for kharif crops will now be 1.5 times of the input cost. When asked about the roadmap, Jaitley today said that the beneficial effects of the MSP will be known in time to come.

In the Budget, Jaitley emphasised that his government’s focus is on the agricultural sector and for the benefit of farmers

Finance Minister Aruj Jaitley has described this year's Union Budget as “popular, and not populist”. In an exclusive interview to Zee Business, Jaitley said, “This Budget was one of the most challenging ones for me. Among the big challenges I had were: How to maintain the fiscal deficit, GDP had slowed down in the past but has now picked up. So how to maintain that growth momentum? Which areas to prioritise etc.” Also read: Budget 2018: Govt's landmark national health scheme to be implemented from October 2 The interview comes days after Jaitley presented the Union Budget where he announced an ambitious project of providing health insurance to nearly 40 crore population of the country. The government, Jaitley said in Parliament, will provide Rs 5 lakh health insurance to 10 crore poor and vulnerable families in “world’s largest health care programme”. The Ayushman Bharat Programme, which is being dubbed as “Modicare”, is being compared with Obamacare, the comprehensive health programme launched by former US president Barack Obama. Also read: India went from fragile five economies to fastest-growing five, says Jaitley “These 40 crore poor people have nothing for them. If they or any of their family members fall ill, they only have government hospitals to go to. By providing this comprehensive healthcare scheme, the government is empowering the poor,” Jaitley said. He added, “This year’s Budget was different than previous years. Our purpose was to consolidate the gains we made in previous years. And we wanted to analyse the areas where we were lagging behind.” In the Budget, Jaitley emphasised that his government’s focus is on the agricultural sector and for the benefit of farmers, it was announced that the Minimum Support Price (MSP) for kharif crops will now be 1.5 times of the input cost. When asked about the roadmap, Jaitley today said that the beneficial effects of the MSP will be known in time to come.

This year's budget is 'popular, and not populist':  Arun Jaitley

&nbsp;

&nbsp;

Trinamool Congress (TMC) leader Derek O&#39;Brien today termed the Union Budget as a &quot;super flop&quot; and a &quot;dying declaration&quot; of a government whose &quot;time is up&quot;.

His comments came after Finance Minister Arun Jaitley presented the 2018-19 Budget in the Lok Sabha. This is the government&#39;s last full Budget before the general elections.

&quot;It is a super flop, a big bluff show. This Budget is the dying declaration of a government whose time is up,&quot; the TMC leader said.&nbsp;

Expressing disappointment over the General Budget, Chief Minister Arvind Kejriwal today alleged that the Centre was &quot;continuing&quot; with its &quot;step-motherly&quot; treatment to Delhi.

Kejriwal said he had expected some financial assistance for important infrastructure projects for the national capital. His deputy Manish Sisodia also expressed unhappiness over Delhi&#39;s share in central taxes and duties remaining unchanged, saying the BJP-led Centre treats Delhi residents as &quot;second-grade citizens&quot;.

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I had expected some financial assistance to important infrastructure projects for national capital. Am disappointed that Centre continues its step-motherly treatment to Delhi
&mdash; Arvind Kejriwal (@ArvindKejriwal) <a href="https://twitter.com/ArvindKejriwal/status/958983929838612480?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Sisodia said that no plans or schemes have been announced for Delhi Police while the AAP government&#39;s demand for special package for 2,000 electric buses to combat air pollution has also not been addressed.

He said that land in Delhi comes under the Centre, but despite this, no plans have been announced for regularisation of unauthorised colonies and giving more land to Delhi government to build clinics, schools, hospitals and bus depots.

&nbsp;

&nbsp;

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Disappointing <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>. 
Not a single extra rupee increased in Delhi&rsquo;s share in Central taxes since 2001-02, stays at Rs 325 Cr. No other part of India gets such treatment. 
 
BJP govt at Center continues to treat Delhi residents as second-grade citizens. N/1
&mdash; Manish Sisodia (@msisodia) <a href="https://twitter.com/msisodia/status/958978296313720832?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Meanwhile Congress leader P Chidambaram said Finance Minister Arun Jaitley had failed the fiscal consolidation test in Budget 2018-19 and this would have serious consequences.

The former finance minister said the fiscal deficit limit of 3.2 per cent in 2017-18 had been breached and was estimated at 3.5 per cent.

The Sharad Pawar-led Nationalist Congress Party (NCP) described the Union Budget as &quot;disappointing&quot; and claimed that it would increase inflation and hurt the common man.

&quot;The budget proposals will pinch the pocket of the common man,&quot; party spokesman Nawab Malik said.

&quot;The (Narendra) Modi government is running away from the basic responsibility of providing health services and is handing over the sector to the insurance companies,&quot; he added.

Meanwhile Sanjay Jha, Congress National Spokesperson said that the middle-class has been led up the garden path by Modi Ji for the last 4 years. Use and throw model,&nbsp; he added.

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The middle-class has been led up the garden path by Modi Ji for the last 4 years. Use and throw model. <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Sanjay Jha (@JhaSanjay) <a href="https://twitter.com/JhaSanjay/status/959000456818180097?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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We are in <a href="https://twitter.com/hashtag/IndiaShiningPart2?src=hash&amp;ref_src=twsrc%5Etfw">#IndiaShiningPart2</a>. Mr Prime Minister <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> Ji, when are you calling for early general elections????? <a href="https://twitter.com/hashtag/RajasthanByPolls?src=hash&amp;ref_src=twsrc%5Etfw">#RajasthanByPolls</a> <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Sanjay Jha (@JhaSanjay) <a href="https://twitter.com/JhaSanjay/status/958989591566016512?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Expressing disappointment over the General Budget, Chief Minister Arvind Kejriwal today alleged that the Centre was "continuing" with its "step-motherly" treatment to Delhi.

Trinamool Congress (TMC) leader Derek O'Brien today termed the Union Budget as a "super flop" and a "dying declaration" of a government whose "time is up". His comments came after Finance Minister Arun Jaitley presented the 2018-19 Budget in the Lok Sabha. This is the government's last full Budget before the general elections. "It is a super flop, a big bluff show. This Budget is the dying declaration of a government whose time is up," the TMC leader said. Expressing disappointment over the General Budget, Chief Minister Arvind Kejriwal today alleged that the Centre was "continuing" with its "step-motherly" treatment to Delhi. Kejriwal said he had expected some financial assistance for important infrastructure projects for the national capital. His deputy Manish Sisodia also expressed unhappiness over Delhi's share in central taxes and duties remaining unchanged, saying the BJP-led Centre treats Delhi residents as "second-grade citizens". I had expected some financial assistance to important infrastructure projects for national capital. Am disappointed that Centre continues its step-motherly treatment to Delhi — Arvind Kejriwal (@ArvindKejriwal) February 1, 2018 × Sisodia said that no plans or schemes have been announced for Delhi Police while the AAP government's demand for special package for 2,000 electric buses to combat air pollution has also not been addressed. He said that land in Delhi comes under the Centre, but despite this, no plans have been announced for regularisation of unauthorised colonies and giving more land to Delhi government to build clinics, schools, hospitals and bus depots. Disappointing #Budget2018. Not a single extra rupee increased in Delhi’s share in Central taxes since 2001-02, stays at Rs 325 Cr. No other part of India gets such treatment. BJP govt at Center continues to treat Delhi residents as second-grade citizens. N/1 — Manish Sisodia (@msisodia) February 1, 2018 × Meanwhile Congress leader P Chidambaram said Finance Minister Arun Jaitley had failed the fiscal consolidation test in Budget 2018-19 and this would have serious consequences. The former finance minister said the fiscal deficit limit of 3.2 per cent in 2017-18 had been breached and was estimated at 3.5 per cent. The Sharad Pawar-led Nationalist Congress Party (NCP) described the Union Budget as "disappointing" and claimed that it would increase inflation and hurt the common man. "The budget proposals will pinch the pocket of the common man," party spokesman Nawab Malik said. "The (Narendra) Modi government is running away from the basic responsibility of providing health services and is handing over the sector to the insurance companies," he added. Meanwhile Sanjay Jha, Congress National Spokesperson said that the middle-class has been led up the garden path by Modi Ji for the last 4 years. Use and throw model, he added. The middle-class has been led up the garden path by Modi Ji for the last 4 years. Use and throw model. #Budget2018 — Sanjay Jha (@JhaSanjay) February 1, 2018 × We are in #IndiaShiningPart2. Mr Prime Minister @narendramodi Ji, when are you calling for early general elections????? #RajasthanByPolls #Budget2018 — Sanjay Jha (@JhaSanjay) February 1, 2018 ×

Budget 2018: 'Super flop', big 'bluff show', dying declaration of government, says Opposition

Finance Minister Arun Jaitley&#39;s announcement on airport capacity increase over five times in his budget speech has been hailed by chairman and managing director Spicejet&nbsp;Ajay Singh. Singh said that the initiative has the potential to transform the Indian aviation sector and make India a global aviation &#39;&#39;superpower&#39;&#39;.

&quot;The initiative will help to connect smaller towns and cities and increase tourism and economic activity like never before,&quot; he added.

Seeking to provide a big push to the country&#39;s civil aviation sector, the finance minister announced an ambitious scheme, Nabh Nirman, to expand airport capacity by five times to 1 billion trips a year.&nbsp;

Jaitley further said that in the last three years, the domestic air passenger traffic grew at 18 per cent per annum and our airline companies placed orders for more than 900 aircrafts. &nbsp;

Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the government last year shall connect 56 unserved airports and 31 unserved helipads across the country.

Operations have already started at 16 such airports. Jaitley said and added that due to these initiatives people wearing slippers are travelling by air.

Jaitley further added, &quot;Airport Authority of India (AAI) has 124 airports. We propose to expand our airport capacity more than five times to handle a billion trips a year under a new initiative - NABH Nirman. The balance sheet of Airport Authority of India shall be leveraged to raise more resources for funding this expansion.&quot;

&nbsp;

Arun Jaitley further announced that in the last three years, the domestic air passenger traffic grew at 18% per annum and our airline companies placed orders for more than 900 aircrafts

Finance Minister Arun Jaitley's announcement on airport capacity increase over five times in his budget speech has been hailed by chairman and managing director Spicejet Ajay Singh. Singh said that the initiative has the potential to transform the Indian aviation sector and make India a global aviation ''superpower''. "The initiative will help to connect smaller towns and cities and increase tourism and economic activity like never before," he added. Seeking to provide a big push to the country's civil aviation sector, the finance minister announced an ambitious scheme, Nabh Nirman, to expand airport capacity by five times to 1 billion trips a year. Jaitley further said that in the last three years, the domestic air passenger traffic grew at 18 per cent per annum and our airline companies placed orders for more than 900 aircrafts. Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the government last year shall connect 56 unserved airports and 31 unserved helipads across the country. Operations have already started at 16 such airports. Jaitley said and added that due to these initiatives people wearing slippers are travelling by air. Jaitley further added, "Airport Authority of India (AAI) has 124 airports. We propose to expand our airport capacity more than five times to handle a billion trips a year under a new initiative - NABH Nirman. The balance sheet of Airport Authority of India shall be leveraged to raise more resources for funding this expansion."

Budget 2018: Spicejet hails Jaitley, says it will benefit Indian aviation sector

BJP chief Amit Shah on Thursday said the Union Budget would ensure that development touched all sections of society and help the government realise its dream of a &quot;New India&quot; by 2022.

Speaking to the media here, Shah highlighted various budget provisions, especially those aimed at weaker sections, and said it was a pro-people Budget that would take the country ahead on the path to development.

The Budget gives &quot;new wings&quot; to the aspirations of the poor, he said, citing measures aimed at giving a boost to farmers, infrastructure, rural sector and small and medium enterprises.

Shah also posted a number of tweets as Finance Minister Arun Jaitley presented his fifth straight budget today to highlight the significance of the measures, especially those for the weaker sections.

This is the last full-fledged budget of the BJP-led NDA government before the next Lok Sabha polls, scheduled for 2019, and the ruling alliance hopes that its emphasis on the rural sector will help it connect with the masses as the elections approach.

The BJP president said the &quot;record allocation&quot; to the rural sector and agriculture would lead to the unprecedented rural development and agricultural growth and asserted that the consistent focus on these sectors had been a hallmark of the government.

He praised Prime Minister Narendra Modi and Jaitley for the &quot;historic&quot; step of raising MSPs to 1.5 times the costs incurred by farmers and said it showed the government&#39;s commitment to farmers and resolve of doubling their income.

&quot;This budget gives new wings to the aspirations of the poor, farmers and the middle class. The #NewIndiaBudget will truly empower all sections of society to attain prosperity,&quot; he tweeted.

There was a &quot;tremendous stress&quot; on improving the ease of living for the common man and this was happening by improving affordability and access and would give a boost to the aspirations of the common man, Shah added.

He also termed the government&#39;s &quot;Ayushman Bharat&quot; scheme an unparalleled initiative to ensure &quot;health insurance as well as health assurance&quot;.

Protecting 10 crore families, which is about 40 per cent of India&#39;s population, with a health insurance cover of Rs 5 lakh per family, was a global first, he said.

The scheme had received a good response from the people, who were calling it &quot;ModiCare&quot;, he added.

The proposed &quot;Eklavya Schools&quot; in tribal blocks reflected the govt&#39;s resolve to uplift tribal communities and help them secure a better future, he said.

The &quot;significant benefits&quot; to the MSME sector would not only give relief to small and medium entrepreneurs but also help them achieve new heights of development, he added.

&quot;I thank the government for the budgetary allocation of Rs 3 lakh crore under the &#39;Mudra Yojana&#39; for the year 2018- 2019 that will boost employment generation. This will especially benefit women, OBC, SC &amp; ST, as so far 76 per cent of loan accounts are of women and more than 50 per cent belong to SC, ST &amp; OBC,&quot; Shah said.

Building a solid Infrastructure for a &#39;New India&#39; has always been the focus of the government and the BJP welcomed and appreciated the record allotment to infrastructure and hastening the pace of completion, Shah said.

Reducing corporate tax to 25 per cent was a major initiative towards creating a competitive environment for doing business in India and was in line with global standards, he said.

&quot;The Modi government has continuously improved fiscal deficit since its first budget. The target of 3.3 per cent for 2018-19 is another effort in the same direction and will certainly improve investor confidence in the Indian economy,&quot; he said.&nbsp;

"This budget gives new wings to the aspirations of the poor, farmers and the middle class. The #NewIndiaBudget will truly empower all sections of society to attain prosperity," he tweeted.

BJP chief Amit Shah on Thursday said the Union Budget would ensure that development touched all sections of society and help the government realise its dream of a "New India" by 2022. Speaking to the media here, Shah highlighted various budget provisions, especially those aimed at weaker sections, and said it was a pro-people Budget that would take the country ahead on the path to development. The Budget gives "new wings" to the aspirations of the poor, he said, citing measures aimed at giving a boost to farmers, infrastructure, rural sector and small and medium enterprises. Shah also posted a number of tweets as Finance Minister Arun Jaitley presented his fifth straight budget today to highlight the significance of the measures, especially those for the weaker sections. This is the last full-fledged budget of the BJP-led NDA government before the next Lok Sabha polls, scheduled for 2019, and the ruling alliance hopes that its emphasis on the rural sector will help it connect with the masses as the elections approach. The BJP president said the "record allocation" to the rural sector and agriculture would lead to the unprecedented rural development and agricultural growth and asserted that the consistent focus on these sectors had been a hallmark of the government. He praised Prime Minister Narendra Modi and Jaitley for the "historic" step of raising MSPs to 1.5 times the costs incurred by farmers and said it showed the government's commitment to farmers and resolve of doubling their income. "This budget gives new wings to the aspirations of the poor, farmers and the middle class. The #NewIndiaBudget will truly empower all sections of society to attain prosperity," he tweeted. There was a "tremendous stress" on improving the ease of living for the common man and this was happening by improving affordability and access and would give a boost to the aspirations of the common man, Shah added. He also termed the government's "Ayushman Bharat" scheme an unparalleled initiative to ensure "health insurance as well as health assurance". Protecting 10 crore families, which is about 40 per cent of India's population, with a health insurance cover of Rs 5 lakh per family, was a global first, he said. The scheme had received a good response from the people, who were calling it "ModiCare", he added. The proposed "Eklavya Schools" in tribal blocks reflected the govt's resolve to uplift tribal communities and help them secure a better future, he said. The "significant benefits" to the MSME sector would not only give relief to small and medium entrepreneurs but also help them achieve new heights of development, he added. "I thank the government for the budgetary allocation of Rs 3 lakh crore under the 'Mudra Yojana' for the year 2018- 2019 that will boost employment generation. This will especially benefit women, OBC, SC & ST, as so far 76 per cent of loan accounts are of women and more than 50 per cent belong to SC, ST & OBC," Shah said. Building a solid Infrastructure for a 'New India' has always been the focus of the government and the BJP welcomed and appreciated the record allotment to infrastructure and hastening the pace of completion, Shah said. Reducing corporate tax to 25 per cent was a major initiative towards creating a competitive environment for doing business in India and was in line with global standards, he said. "The Modi government has continuously improved fiscal deficit since its first budget. The target of 3.3 per cent for 2018-19 is another effort in the same direction and will certainly improve investor confidence in the Indian economy," he said.

Budget gives new wings to aspirations of poor, says Amit Shah

Congress President Rahul Gandhi has said that he will change the structure of the Goods and Services Tax&nbsp; (GST)&nbsp;if his party comes to power in the centre.&nbsp;&nbsp;

While addressing an election campaign in poll-bound state Meghalaya he said: &quot; If we come to power in the centre, we are going to change the structure of GST and simplify it&quot;.

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If we come back to power in the centre, we are going change the structure of <a href="https://twitter.com/hashtag/GST?src=hash&amp;ref_src=twsrc%5Etfw">#GST</a> &amp; simplify it: Rahul Gandhi in Shillong <a href="https://t.co/mkBu4fg3hJ">pic.twitter.com/mkBu4fg3hJ</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/958639725371326467?ref_src=twsrc%5Etfw">January 31, 2018</a></blockquote>
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He also invited women from the state to join his party.

Gandhi said &quot; One of the most important&nbsp;things to be done in the Congress is to balance the number of men we put to fight election and the number of women. I would&nbsp;like to invite women to join the party in Meghalaya so that we have more and more women to choose from&quot;.

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One of the most important thing to be done in the Congress is to balance the number of men we put to fight election &amp; the number of women. I would like to invite women to join the party in <a href="https://twitter.com/hashtag/Meghalaya?src=hash&amp;ref_src=twsrc%5Etfw">#Meghalaya</a> so that we have more &amp; more women to choose from: Rahul Gandhi in <a href="https://twitter.com/hashtag/Shillong?src=hash&amp;ref_src=twsrc%5Etfw">#Shillong</a> <a href="https://t.co/otBarDiYSI">pic.twitter.com/otBarDiYSI</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/958641360562683904?ref_src=twsrc%5Etfw">January 31, 2018</a></blockquote>
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He also hit out at the BJP-RSS claiming that their idea is to&nbsp;dis-empower women.&nbsp;

He said &quot; RSS idea aimed at dis-empowering women. Does anyone know how many leadership positions are with women in RSS? Zero. If you see picture of Mahatma Gandhi you will find women on his side, but if you see picture of Mohan Bhagwat, he &#39;ll be alone.&nbsp;

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RSS idea aimed at dis-empowering women. Does anyone know many leadership positions are with women in RSS? Zero. If you see pix of Mahatma Gandhi you&#39;ll find women on this side (right), this side (left) but if you see pix of Mohan Bhagwat, he&#39;ll be alone or surrounded by men: RG <a href="https://t.co/52xSDReDLc">pic.twitter.com/52xSDReDLc</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/958638837076512768?ref_src=twsrc%5Etfw">January 31, 2018</a></blockquote>
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Gandhi said &quot; We are fighting RSS ideology across the nation. Idea is that one form of thinking is imposed on the country. What BJP and RSS are doing in all over India and particularly in North-east is attempting to undermine your culture, language and way of life&quot;.

<a href="http://www.wionews.com/india-news/congress-announces-candidateslist-for-tripura-meghalaya-30935" target="_blank">Polling in Meghalaya and Nagaland </a>will take place on February 27.

&nbsp;

While addressing an election campaign in poll-bound state Meghalaya he said: 'If we come to power in the centre, we are going to change the structure of GST and simplify it'

Congress President Rahul Gandhi has said that he will change the structure of the Goods and Services Tax (GST) if his party comes to power in the centre. While addressing an election campaign in poll-bound state Meghalaya he said: " If we come to power in the centre, we are going to change the structure of GST and simplify it". If we come back to power in the centre, we are going change the structure of #GST & simplify it: Rahul Gandhi in Shillong pic.twitter.com/mkBu4fg3hJ — ANI (@ANI) January 31, 2018 × He also invited women from the state to join his party. Gandhi said " One of the most important things to be done in the Congress is to balance the number of men we put to fight election and the number of women. I would like to invite women to join the party in Meghalaya so that we have more and more women to choose from". One of the most important thing to be done in the Congress is to balance the number of men we put to fight election & the number of women. I would like to invite women to join the party in #Meghalaya so that we have more & more women to choose from: Rahul Gandhi in #Shillong pic.twitter.com/otBarDiYSI — ANI (@ANI) January 31, 2018 × He also hit out at the BJP-RSS claiming that their idea is to dis-empower women. He said " RSS idea aimed at dis-empowering women. Does anyone know how many leadership positions are with women in RSS? Zero. If you see picture of Mahatma Gandhi you will find women on his side, but if you see picture of Mohan Bhagwat, he 'll be alone. RSS idea aimed at dis-empowering women. Does anyone know many leadership positions are with women in RSS? Zero. If you see pix of Mahatma Gandhi you'll find women on this side (right), this side (left) but if you see pix of Mohan Bhagwat, he'll be alone or surrounded by men: RG pic.twitter.com/52xSDReDLc — ANI (@ANI) January 31, 2018 × Gandhi said " We are fighting RSS ideology across the nation. Idea is that one form of thinking is imposed on the country. What BJP and RSS are doing in all over India and particularly in North-east is attempting to undermine your culture, language and way of life". Polling in Meghalaya and Nagaland will take place on February 27.

If we come back to Centre, we will change GST structure: Rahul Gandhi

We are in the fourth year of the current government and it seems that the farm sector problems have not been sorted out during these four years. We are exactly stranded at the same place where we began a decade back or maybe earlier. Despite strong pressures from the farm lobby, the stagnation in productivity and consequent low net income in the farm sector did not improve.&nbsp;

Though in the current Indian Parliament, we have a large share of Members of Parliament (MP) declaring themselves as agriculturists or farmers, so far the fact has been of little use to the farm sector. The 16th Parliament has 53.8% of the total lawmakers as agriculturists and that is the largest share ever since independence. Despite this fact, and after four years of huge promises made to the agricultural sector, it continues to reel under economic pressure.&nbsp;

The farm sector of this country is trying to wriggle out of the low-income trap. Every day cultivators are leaving agriculture to become construction workers in urban localities. It needs to be seen if the Finance Minister takes a few tricks out of his &lsquo;Brown budget Bag&rsquo; to get the farm sector on a higher growth track.

Slow down in agriculture

Under the pressure of many pulsating current issues, which include Padmaavat, Supreme Court judges, Tripple Talaq, the usual crisis in&nbsp; Kashmir, not much has been said about the significant drop in the growth rates of the farm sector. Parliamentarians are quite happy investing their time without looking into the ulcerating problem of the farm sector. Not a word is spoken about the farm sector nor a scheme introduced in order to enhance the farmers&rsquo; income. The farmers have been reduced only to a &lsquo;coin&rsquo; to be used only during elections and then stacking into deep corners.&nbsp;

The World Economic Forum welcomed India broadly keeping in mind the kind of investment and the potential growth rates of the national economy. But below this shining surface, lies the crumpled face of the agricultural sector which cries for a boost. Productivity has stagnated, investment in the farm sector has not been increasing at the desired pace, real net income stagnated and marginalisation continues unabated. All these are increasing the miseries of the farmers.

Is it one of the usual downs in the growth cycles?

The history of Indian agriculture is replete with cycles of growth and stagnation. The long-term growth of the agricultural sector has never crossed the threshold of 3.5 to 4 percent. The current situation cannot be ascribed to monsoon and, therefore, the policymakers cannot get away by blaming the rain god as usual.&nbsp;

An irritating question can be posed to the policymakers, are they were really unaware of the monsoon dependence of Indian agriculture of the last 7 decades? Right from independence, we have been blaming the rain god for the overall failure of the agriculture sector rather than admitting that monsoon failures create only temporary troughs. With all information technology and supercomputers at our disposal, Indian agricultural scientists and policymakers are helpless before this situation. This powerlessness is shameful when we boast about the scientific advances and an army of agriculture scientists around.&nbsp;

A Large part of the country is still hanging precariously on the performance of monsoon. It is necessary, that the Finance Minister takes up the cudgel to deal with the situations constructively. It is well-known that the Rainfed Authority of India did not deliver its promises and, in fact, it is hardly heard if the authority is functioning at all.&nbsp;

Regional Differentiation

Regional differentiation in the performance of agriculture is well-known in India. There are regions that compare with international standards of agriculture and the other vast steppe is proliferated by poor farmers. This differentiation occurs because of dissimilar factor endowments, including natural and man-made capital formation. There are regions which were termed backward during the initial phase of planning in India and continued to linger around the same position without any visible efforts by successive governments. It is these regions that need to pick up the tempo of growth and aggressively push themselves into the mainstream growth process.&nbsp;

Theodore Schultz argued during mid-sixties, these regions required and external investment push. It is only with that, we may be able to bring in a new growth perspective to the country. Historically, we have bypassed regions and bypassed farmer groups. A number of schemes were undertaken in order to bring these two segments into mainstream growth. However, the story is very clear and the failure is boldly written on the walls of our experience. Clearly, we have not been able to rope in the small and marginal farmers, belonging to Scheduled Caste and Scheduled Tribes, into the mainstream growth pattern. The Finance Minister needs to look carefully into this process of regional disparity and put larger attention to the bypassed groups and the regions.

Policy Vacuum&nbsp;

A few years back we have been talking about a policy paralysis in the agriculture sector. Following that a commission under the chairmanship of Prof. Swaminathan prepared a large report, covering almost every corner of the agricultural sector. Either the report was too complex for the policymakers or it was totally non-implementable and, hence, respectfully trashed by the government.&nbsp;

It is strange that the Niti Ayog could visit only a few aspects of the agriculture sector in pursuit of &lsquo;Doubling the Farmers&rsquo; Income&rsquo; during the coming years. This has become a fashionable phrase now and everyone small and big among the agricultural pundits is talking about &lsquo;Doubling of the Farmers Income&rsquo;.&nbsp;

It is known to all of us that the structure of Indian agriculture is quite complex, diversified and ground preparations for such a policy step are quite difficult. In the coming budget, it is necessary that the Finance Minister puts his attention to a strong policy-making group and look at the agricultural policy in a &lsquo;Bottom-Up Fashion&rsquo; than the usual &lsquo;Top-Down Fashion&rsquo; as has been the case always. It is quite unfortunate that in India the Agricultural Ministry does not have any policy specialists nor are policy document revisited routinely.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

In the coming budget, it is necessary that the Finance Minister puts his attention to a strong policy-making group and look at the agricultural policy in a ‘Bottom-Up Fashion’ than the usual ‘Top-Down Fashion’ as has been the case always.

We are in the fourth year of the current government and it seems that the farm sector problems have not been sorted out during these four years. We are exactly stranded at the same place where we began a decade back or maybe earlier. Despite strong pressures from the farm lobby, the stagnation in productivity and consequent low net income in the farm sector did not improve. Though in the current Indian Parliament, we have a large share of Members of Parliament (MP) declaring themselves as agriculturists or farmers, so far the fact has been of little use to the farm sector. The 16th Parliament has 53.8% of the total lawmakers as agriculturists and that is the largest share ever since independence. Despite this fact, and after four years of huge promises made to the agricultural sector, it continues to reel under economic pressure. The farm sector of this country is trying to wriggle out of the low-income trap. Every day cultivators are leaving agriculture to become construction workers in urban localities. It needs to be seen if the Finance Minister takes a few tricks out of his ‘Brown budget Bag’ to get the farm sector on a higher growth track. Slow down in agriculture Under the pressure of many pulsating current issues, which include Padmaavat, Supreme Court judges, Tripple Talaq, the usual crisis in Kashmir, not much has been said about the significant drop in the growth rates of the farm sector. Parliamentarians are quite happy investing their time without looking into the ulcerating problem of the farm sector. Not a word is spoken about the farm sector nor a scheme introduced in order to enhance the farmers’ income. The farmers have been reduced only to a ‘coin’ to be used only during elections and then stacking into deep corners. The World Economic Forum welcomed India broadly keeping in mind the kind of investment and the potential growth rates of the national economy. But below this shining surface, lies the crumpled face of the agricultural sector which cries for a boost. Productivity has stagnated, investment in the farm sector has not been increasing at the desired pace, real net income stagnated and marginalisation continues unabated. All these are increasing the miseries of the farmers. Is it one of the usual downs in the growth cycles? The history of Indian agriculture is replete with cycles of growth and stagnation. The long-term growth of the agricultural sector has never crossed the threshold of 3.5 to 4 percent. The current situation cannot be ascribed to monsoon and, therefore, the policymakers cannot get away by blaming the rain god as usual. An irritating question can be posed to the policymakers, are they were really unaware of the monsoon dependence of Indian agriculture of the last 7 decades? Right from independence, we have been blaming the rain god for the overall failure of the agriculture sector rather than admitting that monsoon failures create only temporary troughs. With all information technology and supercomputers at our disposal, Indian agricultural scientists and policymakers are helpless before this situation. This powerlessness is shameful when we boast about the scientific advances and an army of agriculture scientists around. A Large part of the country is still hanging precariously on the performance of monsoon. It is necessary, that the Finance Minister takes up the cudgel to deal with the situations constructively. It is well-known that the Rainfed Authority of India did not deliver its promises and, in fact, it is hardly heard if the authority is functioning at all. Regional Differentiation Regional differentiation in the performance of agriculture is well-known in India. There are regions that compare with international standards of agriculture and the other vast steppe is proliferated by poor farmers. This differentiation occurs because of dissimilar factor endowments, including natural and man-made capital formation. There are regions which were termed backward during the initial phase of planning in India and continued to linger around the same position without any visible efforts by successive governments. It is these regions that need to pick up the tempo of growth and aggressively push themselves into the mainstream growth process. Theodore Schultz argued during mid-sixties, these regions required and external investment push. It is only with that, we may be able to bring in a new growth perspective to the country. Historically, we have bypassed regions and bypassed farmer groups. A number of schemes were undertaken in order to bring these two segments into mainstream growth. However, the story is very clear and the failure is boldly written on the walls of our experience. Clearly, we have not been able to rope in the small and marginal farmers, belonging to Scheduled Caste and Scheduled Tribes, into the mainstream growth pattern. The Finance Minister needs to look carefully into this process of regional disparity and put larger attention to the bypassed groups and the regions. Policy Vacuum A few years back we have been talking about a policy paralysis in the agriculture sector. Following that a commission under the chairmanship of Prof. Swaminathan prepared a large report, covering almost every corner of the agricultural sector. Either the report was too complex for the policymakers or it was totally non-implementable and, hence, respectfully trashed by the government. It is strange that the Niti Ayog could visit only a few aspects of the agriculture sector in pursuit of ‘Doubling the Farmers’ Income’ during the coming years. This has become a fashionable phrase now and everyone small and big among the agricultural pundits is talking about ‘Doubling of the Farmers Income’. It is known to all of us that the structure of Indian agriculture is quite complex, diversified and ground preparations for such a policy step are quite difficult. In the coming budget, it is necessary that the Finance Minister puts his attention to a strong policy-making group and look at the agricultural policy in a ‘Bottom-Up Fashion’ than the usual ‘Top-Down Fashion’ as has been the case always. It is quite unfortunate that in India the Agricultural Ministry does not have any policy specialists nor are policy document revisited routinely. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Union Budget 2018 needs to end the sorry saga of Indian agriculture

The Union budget to be presented by the Finance Minister on 1st February is crucial for at least three reasons. Firstly, the budget comes at a time when the growth rate of the economy is projected to be at 6.5% for the current financial year, the lowest since the Modi government assumed office. Secondly, the budget comes in the backdrop of a major economic policy change of introducing Goods and Services Tax (GST) that the government initiated last year. Thirdly, this is perhaps the last full budget that the government will be placing before the Lok Sabha elections, due in 2019. Let us look at these issues seriatim.&nbsp;

&nbsp;

The growth rate of Gross Value Added (GVA) is projected to be 6.1% in 2017-18, as against 6.6% in 2016-17 and 7.9% in 2015-16. This growth slowdown is a manifestation of the fact that investment is simply not picking up in the economy. As a share of GDP, the investment declined from 31.3% in 2013-14 to 29% in 2017-18 (projected). The Centre for Monitoring the Indian Economy (CMIE) has reported that new project announcements by the Indian corporate sector reached a 13 year low in December 2017.&nbsp;

&nbsp;

The investment and growth slowdown in the country is a result of a complex set of factors. Firstly, it is now clear, even to die-hard supporters of the government, that the policy of demonetisation had a very serious adverse impact on the economy, particularly the informal sector, while unearthing precious little worth of black money. The uncertainty created because of this hard-headed measure and the concomitant contraction of economic activity has resulted in an economic slowdown in the country.

&nbsp;

Secondly, the problem of corporate debt overhang in the economy and the resulting bad loans in the banking sector are primarily responsible for the investment slowdown. The Reserve Bank of India reports that gross non-performing advances ratio increased from 9.6% to 10.2% between March and September 2017. Burdened with these NPAs, the credit growth rate of the banks is much below what it was a few years back. The government has not been able to solve the problem of NPAs in the Indian banking sector.&nbsp;

&nbsp;

In fact, when Mr. Jaitley became the Finance Minister, the gross non-performing assets of the scheduled commercial banks was around Rs. 2.6 trillion. This had reached around Rs. 8 trillion by March 2017, even after the government writing off a significant amount of the NPAs. Rather than take stringent action against the defaulters and recover the money, the government has brought a new Financial Resolution and Deposit Insurance (FRDI) bill, with the clause of bail-in which can jeopardise the stability of the public banking sector in India. This twin problem of NPAs and investment slowdown has to be tackled by the government.&nbsp;

&nbsp;

One of the ways in which the government can deal with the problem of the investment slowdown is to step up public investment. However, as a result of its adherence to the FRBM Act, the government is committed to maintaining a fiscal deficit which is 3.2% of GDP for the current fiscal. But as per the Controller General of Accounts data, the fiscal deficit has overshot the target (112% of the target set last year) by the end of November 2017. During the same period, last year, the fiscal deficit was 85% of the target in November 2016.&nbsp; Additionally, if the GDP projection does not meet target (which is possible given a downward revision of GDP growth projection), then clearly the fiscal deficit ratio is going to increase. The government, therefore, will have to cut back on expenditures in the remaining months of the fiscal to try and remain within the fiscal deficit target.

&nbsp;

This problem is basically a result of the inability of the government to meet revenue targets. It has been reported that tax collections under GST have been declining since its inception. In July, Rs 92283 crore was collected which declined to Rs 80808 crore in November 2017. Moreover, data shows that non-tax revenue has suffered a hit this fiscal. This is because the dividend from RBI has decreased by Rs 30000 crore and spectrum sales target have not been met. The shortfall in the RBI dividend, by the way, is a direct result of the policy of demonetisation. With the huge deposits in the banks, the interest paid to customers as well as banks to hold the deposit, plus the costs of new note printing drastically reduced the profitability of RBI, which resulted in a decline in its dividend paid to the government.

&nbsp;

This stressed fiscal situation is further aggravated by another crucial development. When Modi assumed office in 2014, the price of a barrel of crude oil in the international market was more than $100 which subsequently halved its value. Taking advantage of this low oil price, the government increased the excise duty on petroleum products, such that while crude oil prices declined, retail prices did not. Through this imposition of excise duties, the government collected 1.8% of GDP as revenue. The total excise duty collection from the oil sector doubled. Now, however, crude oil prices are rising up. As a result, retail prices of petrol and diesel are also increasing. For example, within 6 months, the price of petrol in Kolkata increased by more than Rs 6/litre. Rising oil prices have cascading effects on inflation, and they are politically sensitive. Therefore, the government is faced with a situation where they may have to reduce excise duty on oil, like they did in October last year. This will only aggravate government&rsquo;s revenue mobilisation problem.

&nbsp;

There has been a lot of discussion in the media regarding the rural and agriculture sector with speculation that the government would be announcing some relief for this sector. It is true that agriculture sector is in crisis. The political manifestations of this have been in terms of farmers&rsquo; agitations in Maharastra, Madhya Pradesh, Rajasthan and other states. Even in Gujarat, the BJP&rsquo;s support base was dented in the rural areas. The root cause of this crisis is non-remunerative prices for agricultural products, the problem of agricultural loans and government&rsquo;s refusal to write off farmers&rsquo; debts.&nbsp;

&nbsp;

The government also had promised to double the income of the farmers. Far from doubling, what has happened is that the agricultural growth rate has slowed down in the country. In such a situation and given the election year, the buzz around rural sector spending increasing is natural. However, the macroeconomics of the budget with shortfalls in revenue generation will tie up the government&rsquo;s hands. Either the government has to impose a new set of taxes to generate resources to be spent in the rural areas. Or else, the expenditure will be nominally increased in rural areas, at the cost of expenditures in other sectors.&nbsp;

&nbsp;

The other major challenge of the government is job creation. While the PM has now turned around from digital economy towards designating pakoda making as gainful employment, the fact of the matter is that there is a slowdown in the job-generating capacity of the economy. The annual survey of Labour Bureau shows the real picture where there has been a decline in employment between 2013-14 and 2015-16. What the government will do in terms of providing jobs to the youth remain to be seen.

&nbsp;

What is, however, binding the government to raise resources in a progressive manner and go for large-scale fiscal stimulus is not economics but its own politics and a warped notion of economic policy. In a situation where there are growth and investment slow down, agrarian crisis, growing joblessness, undergraduate economics teaches us that a fiscal stimulus will surely help in improving the situation. This stimulus can be funded by simply taxing the rich and super-rich in the country.&nbsp;

&nbsp;

It has been reported by Oxfam that the top 1% of India&rsquo;s population amassed 73% of the total wealth created in the country last year. The super-rich in our country are truly having ache din. If these wealth earners are taxed, such expansionary policies can be undertaken. The tax-GDP ratio in India is one of the lowest in the world.&nbsp; This is so at a time when India is having a record number of dollar billionaires. It is however unlikely that a government which goes ecstatic with an improvement in ranking in the faulty &lsquo;ease of doing business&rsquo; will try to impose burdens on the rich for spending on aam admi.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

It has been reported by Oxfam that the top 1% of India’s population amassed 73% of the total wealth created in the country last year.

The Union budget to be presented by the Finance Minister on 1st February is crucial for at least three reasons. Firstly, the budget comes at a time when the growth rate of the economy is projected to be at 6.5% for the current financial year, the lowest since the Modi government assumed office. Secondly, the budget comes in the backdrop of a major economic policy change of introducing Goods and Services Tax (GST) that the government initiated last year. Thirdly, this is perhaps the last full budget that the government will be placing before the Lok Sabha elections, due in 2019. Let us look at these issues seriatim. The growth rate of Gross Value Added (GVA) is projected to be 6.1% in 2017-18, as against 6.6% in 2016-17 and 7.9% in 2015-16. This growth slowdown is a manifestation of the fact that investment is simply not picking up in the economy. As a share of GDP, the investment declined from 31.3% in 2013-14 to 29% in 2017-18 (projected). The Centre for Monitoring the Indian Economy (CMIE) has reported that new project announcements by the Indian corporate sector reached a 13 year low in December 2017. The investment and growth slowdown in the country is a result of a complex set of factors. Firstly, it is now clear, even to die-hard supporters of the government, that the policy of demonetisation had a very serious adverse impact on the economy, particularly the informal sector, while unearthing precious little worth of black money. The uncertainty created because of this hard-headed measure and the concomitant contraction of economic activity has resulted in an economic slowdown in the country. Secondly, the problem of corporate debt overhang in the economy and the resulting bad loans in the banking sector are primarily responsible for the investment slowdown. The Reserve Bank of India reports that gross non-performing advances ratio increased from 9.6% to 10.2% between March and September 2017. Burdened with these NPAs, the credit growth rate of the banks is much below what it was a few years back. The government has not been able to solve the problem of NPAs in the Indian banking sector. In fact, when Mr. Jaitley became the Finance Minister, the gross non-performing assets of the scheduled commercial banks was around Rs. 2.6 trillion. This had reached around Rs. 8 trillion by March 2017, even after the government writing off a significant amount of the NPAs. Rather than take stringent action against the defaulters and recover the money, the government has brought a new Financial Resolution and Deposit Insurance (FRDI) bill, with the clause of bail-in which can jeopardise the stability of the public banking sector in India. This twin problem of NPAs and investment slowdown has to be tackled by the government. One of the ways in which the government can deal with the problem of the investment slowdown is to step up public investment. However, as a result of its adherence to the FRBM Act, the government is committed to maintaining a fiscal deficit which is 3.2% of GDP for the current fiscal. But as per the Controller General of Accounts data, the fiscal deficit has overshot the target (112% of the target set last year) by the end of November 2017. During the same period, last year, the fiscal deficit was 85% of the target in November 2016. Additionally, if the GDP projection does not meet target (which is possible given a downward revision of GDP growth projection), then clearly the fiscal deficit ratio is going to increase. The government, therefore, will have to cut back on expenditures in the remaining months of the fiscal to try and remain within the fiscal deficit target. This problem is basically a result of the inability of the government to meet revenue targets. It has been reported that tax collections under GST have been declining since its inception. In July, Rs 92283 crore was collected which declined to Rs 80808 crore in November 2017. Moreover, data shows that non-tax revenue has suffered a hit this fiscal. This is because the dividend from RBI has decreased by Rs 30000 crore and spectrum sales target have not been met. The shortfall in the RBI dividend, by the way, is a direct result of the policy of demonetisation. With the huge deposits in the banks, the interest paid to customers as well as banks to hold the deposit, plus the costs of new note printing drastically reduced the profitability of RBI, which resulted in a decline in its dividend paid to the government. This stressed fiscal situation is further aggravated by another crucial development. When Modi assumed office in 2014, the price of a barrel of crude oil in the international market was more than $100 which subsequently halved its value. Taking advantage of this low oil price, the government increased the excise duty on petroleum products, such that while crude oil prices declined, retail prices did not. Through this imposition of excise duties, the government collected 1.8% of GDP as revenue. The total excise duty collection from the oil sector doubled. Now, however, crude oil prices are rising up. As a result, retail prices of petrol and diesel are also increasing. For example, within 6 months, the price of petrol in Kolkata increased by more than Rs 6/litre. Rising oil prices have cascading effects on inflation, and they are politically sensitive. Therefore, the government is faced with a situation where they may have to reduce excise duty on oil, like they did in October last year. This will only aggravate government’s revenue mobilisation problem. There has been a lot of discussion in the media regarding the rural and agriculture sector with speculation that the government would be announcing some relief for this sector. It is true that agriculture sector is in crisis. The political manifestations of this have been in terms of farmers’ agitations in Maharastra, Madhya Pradesh, Rajasthan and other states. Even in Gujarat, the BJP’s support base was dented in the rural areas. The root cause of this crisis is non-remunerative prices for agricultural products, the problem of agricultural loans and government’s refusal to write off farmers’ debts. The government also had promised to double the income of the farmers. Far from doubling, what has happened is that the agricultural growth rate has slowed down in the country. In such a situation and given the election year, the buzz around rural sector spending increasing is natural. However, the macroeconomics of the budget with shortfalls in revenue generation will tie up the government’s hands. Either the government has to impose a new set of taxes to generate resources to be spent in the rural areas. Or else, the expenditure will be nominally increased in rural areas, at the cost of expenditures in other sectors. The other major challenge of the government is job creation. While the PM has now turned around from digital economy towards designating pakoda making as gainful employment, the fact of the matter is that there is a slowdown in the job-generating capacity of the economy. The annual survey of Labour Bureau shows the real picture where there has been a decline in employment between 2013-14 and 2015-16. What the government will do in terms of providing jobs to the youth remain to be seen. What is, however, binding the government to raise resources in a progressive manner and go for large-scale fiscal stimulus is not economics but its own politics and a warped notion of economic policy. In a situation where there are growth and investment slow down, agrarian crisis, growing joblessness, undergraduate economics teaches us that a fiscal stimulus will surely help in improving the situation. This stimulus can be funded by simply taxing the rich and super-rich in the country. It has been reported by Oxfam that the top 1% of India’s population amassed 73% of the total wealth created in the country last year. The super-rich in our country are truly having ache din. If these wealth earners are taxed, such expansionary policies can be undertaken. The tax-GDP ratio in India is one of the lowest in the world. This is so at a time when India is having a record number of dollar billionaires. It is however unlikely that a government which goes ecstatic with an improvement in ranking in the faulty ‘ease of doing business’ will try to impose burdens on the rich for spending on aam admi. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Taxing the super rich is how we can revive Indian economy

India&#39;s government will unveil its budget for the 2018-19 fiscal year on Thursday, with investors expecting increased investment in key areas such as agriculture, and a slew of incentives for businesses.

After the roll out of the Goods and Services Tax (GST) last year, India&#39;s economy is expected to post growth of 6.75 per cent in the 2017-18 fiscal year ending in March, which would be the slowest in three years.

The government is widely expected to increase spending to ensure growth recaptures momentum, but most investors expect it to be prudent as loosening fiscal deficit targets by too much would likely spark a sell-off in the bond market.

However, speculation is rife in different sectors for tax sops. Everyone is putting forward its wishlist for Finance Minister Arun Jaitley as he geats ready to present Modi government&#39;s last full Budget.

Leading health insurance company Aviva wants the government to increase the income tax slabs exemption &quot;leaving more money in people&#39;s hands&quot;.

&quot;The insurance industry has always played a significant role in the economic development of nations and society. Predominantly, what we should look forward following the upcoming budget would be increase in the number of people having adequate insurance cover. To attain the same, there should be an increase in the income tax slabs exemption leaving more money in people&#39;s hands to channelise the funds well,&quot; said Karni S Arha, Chief Financial Officer, Aviva India.

We should expect to promote a separate dedicated insurance premium exemption limit as the current composite limit u/s 80c (Rs 1.5lac) is already overcrowded and exhausted, he added.

As per the IRDA, the insurance penetration (percentage of insurance premium to the GDP) in India is currently at 3.42 per cent, significantly lower than the global average of 6.2 per cent. The industry believes this is one of the aspects which needs to be looked into on priority.

The growing recognition of India&#39;s healthcare crisis has led to urgency for increased public funding of healthcare, which, the industry believes, can be taken up in the Union Budget.

After the roll out of the Goods and Services Tax (GST) last year, India's economy is expected to post growth of 6.75 per cent in the 2017-18 fiscal year ending in March, which would be the slowest in three years.

India's government will unveil its budget for the 2018-19 fiscal year on Thursday, with investors expecting increased investment in key areas such as agriculture, and a slew of incentives for businesses. After the roll out of the Goods and Services Tax (GST) last year, India's economy is expected to post growth of 6.75 per cent in the 2017-18 fiscal year ending in March, which would be the slowest in three years. The government is widely expected to increase spending to ensure growth recaptures momentum, but most investors expect it to be prudent as loosening fiscal deficit targets by too much would likely spark a sell-off in the bond market. However, speculation is rife in different sectors for tax sops. Everyone is putting forward its wishlist for Finance Minister Arun Jaitley as he geats ready to present Modi government's last full Budget. Leading health insurance company Aviva wants the government to increase the income tax slabs exemption "leaving more money in people's hands". "The insurance industry has always played a significant role in the economic development of nations and society. Predominantly, what we should look forward following the upcoming budget would be increase in the number of people having adequate insurance cover. To attain the same, there should be an increase in the income tax slabs exemption leaving more money in people's hands to channelise the funds well," said Karni S Arha, Chief Financial Officer, Aviva India. We should expect to promote a separate dedicated insurance premium exemption limit as the current composite limit u/s 80c (Rs 1.5lac) is already overcrowded and exhausted, he added. As per the IRDA, the insurance penetration (percentage of insurance premium to the GDP) in India is currently at 3.42 per cent, significantly lower than the global average of 6.2 per cent. The industry believes this is one of the aspects which needs to be looked into on priority. The growing recognition of India's healthcare crisis has led to urgency for increased public funding of healthcare, which, the industry believes, can be taken up in the Union Budget.

Budget 2018: What the insurance sector wants

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender&nbsp;inequality.

India&#39;s chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said.

Arvind Subramanian on Economy

- Recovery is underway in the economy.

- We hope that growth will get a boost.

- Growth depends on many factors.

- Export can get a boost.

- GST is no longer bearing the burden of note ban.

Arvind Subramanian on Petroleum Products

- Petroleum products need to be brought under GST.

- Oil prices are increasing steadily.

- Demand for bringing GST in prices increased due to rising prices.

- Oil prices will come down after coming into GST

- When petroleum comes into GST, the government&#39;s revenue will decrease.

Arvind Subramanian on GST

-Revenue growth from GST has been quite good.

- The picture will be clear&nbsp;in one or two quarters.

- Further changes in GST expected.

- Power, oil may be brought under GST.

- Will consider simplifying the GST rate structure.

Arvind Subramanian on Gender Issue

- Gender inequality is very high in society

- In the love of sons, people keep having daughters

- Because of this, 21 million unwanted daughters were born

- There is an environment of discrimination against girls in society

Arvind Subramanian on &quot;Ease of Doing Business&quot;

- There will be more work in many areas.

- The judicial system needs to improve.

- There are too many cases pending in the court today.

- It directly has an impact on the &quot;ease of doing business&quot;.

- There are many cases of income tax pending in court.

Arvind Subramanian on private&nbsp;investment

- There are several reasons why private investment does not grow.

- Many private companies borrowed a lot.

- Government is taking several steps to improve it.

- Many cases of non-repayment of loans were sent to NCLT.

- The government also focused on the recap of banks.

Arvind Subramanian on Growth

- GDP growth is expected to be 7-7.5% in FY19.

- A lot depends on world growth.

- Crude prices upsetting equation.

Arvind Subramanian on Agriculture

- Our focus will be on the betterment of the agriculture sector.

- It is important to improve the condition of farmers.

Subramanian said the that there is a recovery in the economy of the country and hoped for further growth

A day after Arun Jaitley tabled the Economic Survey in parliament ahead of the Union Budget, Chief economic advisor Arvind Subramanian spoke about various topics namely GST, oil prices and gender inequality. India's chief economic advisor said that there is a recovery in the economy of the country and hoped for further growth. However, growth depends on various other factors, he said. Arvind Subramanian on Economy - Recovery is underway in the economy. - We hope that growth will get a boost. - Growth depends on many factors. - Export can get a boost. - GST is no longer bearing the burden of note ban. Arvind Subramanian on Petroleum Products - Petroleum products need to be brought under GST. - Oil prices are increasing steadily. - Demand for bringing GST in prices increased due to rising prices. - Oil prices will come down after coming into GST - When petroleum comes into GST, the government's revenue will decrease. Arvind Subramanian on GST -Revenue growth from GST has been quite good. - The picture will be clear in one or two quarters. - Further changes in GST expected. - Power, oil may be brought under GST. - Will consider simplifying the GST rate structure. Arvind Subramanian on Gender Issue - Gender inequality is very high in society - In the love of sons, people keep having daughters - Because of this, 21 million unwanted daughters were born - There is an environment of discrimination against girls in society Arvind Subramanian on "Ease of Doing Business" - There will be more work in many areas. - The judicial system needs to improve. - There are too many cases pending in the court today. - It directly has an impact on the "ease of doing business". - There are many cases of income tax pending in court. Arvind Subramanian on private investment - There are several reasons why private investment does not grow. - Many private companies borrowed a lot. - Government is taking several steps to improve it. - Many cases of non-repayment of loans were sent to NCLT. - The government also focused on the recap of banks. Arvind Subramanian on Growth - GDP growth is expected to be 7-7.5% in FY19. - A lot depends on world growth. - Crude prices upsetting equation. Arvind Subramanian on Agriculture - Our focus will be on the betterment of the agriculture sector. - It is important to improve the condition of farmers.

Chief economic advisor Arvind Subramanian on GST, oil prices & ease of doing business

Benchmarks buckled under heavy selling pressure today as wary investors pocketed gains in recent winners ahead of the Union Budget amid lacklustre global leads.

The BSE Sensex sank about 250 points to end at 36,033.73, while the broader NSE Nifty dropped 80 points to 11,049.65.

Brokers said investors took money off the table and held back fresh bets ahead of the Union Budget on February 1.

Market sentiment was also impacted as other Asian markets retreated from record highs, tracking overnight meltdown at the Wall Street after a sell-off in Apple shares.

Investors were also cautious ahead of the US Federal Reserve&#39;s two-day monetary policy meeting beginning today.

The 30-share Sensex, after opening a shade lower at 36,277.12, continued its slide to crack the 36,000-mark and hit a low of 35,993.41 during the day. It finally settled at 36,033.73, down 249.52 points, or 0.69 per cent.

The index had gained 232.81 points yesterday and closed at a record high of 36,283.25.

The Nifty too closed lower by 80.75 points, or 0.73 per cent, at 11,049.65 after hitting a low of 11,033.90.

It had ended at a lifetime high of 11,130.40 yesterday.

&quot;Market slid followed by weaknesses in global markets while investors are likely to utilise the correction as improving domestic macros coupled with earnings growth will benefit in the long run.

&quot;The upcoming US Fed policy and India budget will remain the near term catalyst,&quot; said Vinod Nair, Head of Research, Geojit Financial Services.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 291.86 crore on net basis while domestic institutional investors (DIIs) also picked up equities to the tune of Rs 90.08 crore yesterday, provisional data showed.

Asian Paints was the worst performer among the Sensex components by falling 2.22 per cent, followed by Kotak Mahindra Bank at 2.20 per cent.

Other laggards were Axis Bank, Dr Reddy&#39;s, Adani Ports, Reliance Industries, Wipro, ICICI Bank, TCS, Yes Bank, HDFC Ltd, Infosys, Tata Steel, Tata Motors, Maruti Suzuki, NTPC, ONGC, Bajaj Auto, Bharti Airtel, ITC and HDFC Bank.

Bucking the trend, Coal India, Hero MotoCorp, Sun Pharma, SBI, IndusInd Bank, HUL and Power Grid finished with gains of up to 1.71 per cent.

Reliance Communications soared 10.46 per cent after the company reported narrowing of consolidated loss to Rs 130 crore for the quarter ended December 2017.

Sector-wise, the BSE consumer durables index was the weakest of the lost, dropping 1.74 per cent, followed by IT 1.07 per cent, teck 1.02 per cent, bankex 0.85 per cent, realty 0.80 per cent, metal 0.63 per cent, healthcare 0.61 per cent, infrastructure 0.56 per cent, auto 0.48 per cent, capital goods 0.36 per cent and FMCG 0.33 per cent.

Oil &amp; gas and PSU indices managed to close in the green.

The broader markets continued to face selling pressure, which pulled down the small-cap index by 1.34 per cent and mid-cap by 0.67 per cent.

Overseas, European stocks were trading lower following sharp losses in Asian bourses and on Wall Street. Key indices like Frankfurt&#39;s DAX was down by 0.35 per cent, while Paris CAC 40 shed 0.19 per cent in their late morning deals. London&#39;s FTSE fell 0.42 per cent.

In Asia, Japan&#39;s Nikkei fell 1.43 per cent and Hong Kong&#39;s Hang Seng slipped 1.09 per cent, while Shanghai Composite Index dropped 0.99 per cent.

The BSE Sensex sank about 250 points to end at 36,033.73, while the broader NSE Nifty dropped 80 points to 11,049.65

Benchmarks buckled under heavy selling pressure today as wary investors pocketed gains in recent winners ahead of the Union Budget amid lacklustre global leads. The BSE Sensex sank about 250 points to end at 36,033.73, while the broader NSE Nifty dropped 80 points to 11,049.65. Brokers said investors took money off the table and held back fresh bets ahead of the Union Budget on February 1. Market sentiment was also impacted as other Asian markets retreated from record highs, tracking overnight meltdown at the Wall Street after a sell-off in Apple shares. Investors were also cautious ahead of the US Federal Reserve's two-day monetary policy meeting beginning today. The 30-share Sensex, after opening a shade lower at 36,277.12, continued its slide to crack the 36,000-mark and hit a low of 35,993.41 during the day. It finally settled at 36,033.73, down 249.52 points, or 0.69 per cent. The index had gained 232.81 points yesterday and closed at a record high of 36,283.25. The Nifty too closed lower by 80.75 points, or 0.73 per cent, at 11,049.65 after hitting a low of 11,033.90. It had ended at a lifetime high of 11,130.40 yesterday. "Market slid followed by weaknesses in global markets while investors are likely to utilise the correction as improving domestic macros coupled with earnings growth will benefit in the long run. "The upcoming US Fed policy and India budget will remain the near term catalyst," said Vinod Nair, Head of Research, Geojit Financial Services. Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 291.86 crore on net basis while domestic institutional investors (DIIs) also picked up equities to the tune of Rs 90.08 crore yesterday, provisional data showed. Asian Paints was the worst performer among the Sensex components by falling 2.22 per cent, followed by Kotak Mahindra Bank at 2.20 per cent. Other laggards were Axis Bank, Dr Reddy's, Adani Ports, Reliance Industries, Wipro, ICICI Bank, TCS, Yes Bank, HDFC Ltd, Infosys, Tata Steel, Tata Motors, Maruti Suzuki, NTPC, ONGC, Bajaj Auto, Bharti Airtel, ITC and HDFC Bank. Bucking the trend, Coal India, Hero MotoCorp, Sun Pharma, SBI, IndusInd Bank, HUL and Power Grid finished with gains of up to 1.71 per cent. Reliance Communications soared 10.46 per cent after the company reported narrowing of consolidated loss to Rs 130 crore for the quarter ended December 2017. Sector-wise, the BSE consumer durables index was the weakest of the lost, dropping 1.74 per cent, followed by IT 1.07 per cent, teck 1.02 per cent, bankex 0.85 per cent, realty 0.80 per cent, metal 0.63 per cent, healthcare 0.61 per cent, infrastructure 0.56 per cent, auto 0.48 per cent, capital goods 0.36 per cent and FMCG 0.33 per cent. Oil & gas and PSU indices managed to close in the green. The broader markets continued to face selling pressure, which pulled down the small-cap index by 1.34 per cent and mid-cap by 0.67 per cent. Overseas, European stocks were trading lower following sharp losses in Asian bourses and on Wall Street. Key indices like Frankfurt's DAX was down by 0.35 per cent, while Paris CAC 40 shed 0.19 per cent in their late morning deals. London's FTSE fell 0.42 per cent. In Asia, Japan's Nikkei fell 1.43 per cent and Hong Kong's Hang Seng slipped 1.09 per cent, while Shanghai Composite Index dropped 0.99 per cent.

Sensex, Nifty tumble from record highs ahead of Budget

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