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Make in India

  • Revival of growth and investment in domestic manufacturing for job creation.
  • Simplified Tax System for Ease of Doing Business.
  • Expert committee to examine possibility and propose draft legislation to replace multiple prior permissions with easier mechanism.
  • Basic custom duty on 22 inputs/raw materials reduced to minimise impact of duty inversion and reduce manufacturing cost in various sectors.
  • Permanent Establishment norms to be modified to encourage fund managers to relocate to India.
  • General Anti Avoidance Rule (GAAR) to be deferred by two years. To be applied prospectively to investments made on or after 01-04-2017.
  • Rate of Income Tax on royalty and fees from technical services reduced from 25% to 10% to facilitate technology inflow.
  • Basic customs duty on 22 inputs/raw materials and Special Additional Duty (SAD) on certain other inputs/raw materials reduced to minimize impact of duty inversion and reduce manufacturing cost in various sectors.
  • Rental income of REITs from their own assets to have pass through facility.
  • Tax pass through to be allowed to both category I and Category II Alternate Investment Funds.
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Skill India

  • National Skills Mission (with 31 Sector Skills Councils) to be launched soon: will consolidate skill initiatives spread across several ministries and allow standardization of procedures and outcomes.
  •  1,500 cr. set apart for Deen Daya Upadhyay Gramin Kaushal Yojana.
  • Several institutes ranging from higher technical education to skills education to come up in various parts of the country:
  • AIIMS to be set up in Jammu& Kashmir, Punjab, Tamil Nadu Himachal and Assam.
  • IITs to be set up in Karnataka and ISM Dhanbad made into full-fledged IIT.
  • Post Graduate Institute of Horticulture Research and Education to be set up in Amritsar.
  • IIMs will be set up in Jammu & Kashmir and Andhra Pradesh.
  • New National Institutes of Pharmaceutical education and research in Maharashtra, Rajasthan and Chhattisgarh.
  • An Institute of Sciences and Educational Research to be set up in Nagaland and Odisha.
  • Centre for Film Production, Animation and Gaming in Arunachal Pradesh for entire North East.
  • Apprenticeship Training Institute for women in Haryana and Uttrakhand.
  • Student Financial Aid Authority to be set up to administer and monitor scholarship as well as Educational Loan Schemes through Pradhan Mantri Vidya Lakshmi Karyakram: No student to miss out on higher education for lack of funds.
  • Faster implementation of National Optical Fiber Network Programme (NOFNP).
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    Encouraging Entrepreneurship

    • Encouragement to entrepreneurs to set up micro units: refinance for Micro Finance Institutions from MUDRA Bank (with corpus of 20000 crores and with 3000 crores credit guarantee corpus) through Pradhan Mantri Mudra Yojana. Priority for lending to SC/STs.
    • Atal Innovation Mission: To be established in NITI to provide innovation platform: Sum of   150 cr. earmarked.
    •  1000 cr. earmarked for Self Employment and Talent Utilization (SETU) Mechanism.
    • Loans to Medium enterprises being brought under priority sector lending.
    • Small Finance Banks will augment supply of credit to MSMEs.
    • A separate 7.5% sub target is being created under priority sector lending: will increase finance for micro enterprises.
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    Productivity

    Farmer prosperity will primarily depend on increasing productivity in agriculture. Therefore, there is major thrust on “Soil Health” and “ per drop more crop” for ushering in prosperity:
    • Soil Health Card Scheme to be supported by Paramparagat Krishi Vikas Yojana for organic farming with an allocation of 300 cr.
    • Per drop more crop:  5,300 cr. allocation for micro irrigation, watershed development and Pradhan Mantri Krishi Sinchai Yojana. States urged to chip in substantially.
    • Emphasis on Agricultural Research and Education. 6320 cr. allocated.
    • Focus on improving quality and effectiveness under MGNREGA.
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    Other Measures

    • Work with the States, in NITI, for creation of Unified National Agriculture Market for better remuneration to the farmers.
    • 481.50 cr. allocated for Dairy Vikas Abhiyan.
    • 410 cr. allocated for Blue Revolution.
    • 72968 cr. kept for fertilizer subsidy.
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    Credit

    • 25,000 Cr. allocated to the corpus of Rural Infrastructure Development Fund in NABARD.
    • 15,000 cr. for Long Term Rural Credit Fund.
    • 45,000 cr. for Short Term Cooperative Rural Credit Refinance Fund and 15000 cr. for Short Term RRB Refinance Fund.
    • Ambitious target of 8.5 lakh cr. of agricultural credit this year.
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    Basic Needs

    Vision for "Team India"


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    Social Protection and Welfare

    • 34,699 crores for MGNREGA.
    • 124419 crore for food subsidy.
    • Cut in subsidy leakages, not subsidies themselves: Game changing reform through JAM Trinity - Jan Dhan, Adhar and Mobile to implement direct transfer of benefits.
    • Despite fiscal pressure due to larger transfer of resources to the States, welfare programmes for poor and socially disadvantaged remains fully supported by Union Government:
    • National Social Assistance Programme ( 9000 crores provided).
    • PMGSY ( 10100 crores provided).
    • Special Central Assistance to Tribal Sub Plan: 1250 crore provided.
    • Umbrella Scheme for education of ST children: 113 crores provided.
    • MGNREGA: 34699 crore provided initially.
    • Scholarships to SC, ST, OBCs: 3291 crore provided.
    • Pradhan Mantri Adarsh Gram Yojna: 200 crore provided.
    • Indira Gandhi Matritva Sahyog Yojana: 400 crores provided.
    • Social Security for unorganized sector Workers scheme: 1290 crore.
    • 30,851 crore and 19990 crore allocation made for SCs and STs respectively.
    • 69968 crore allocated to Eductaion including mid-day meals, 33152 crore allocated to Health Sector, 79526 crore allocated to Rural Development (inclusive of MGNREGA), 22407 crore allocated for Housing and Urban Development, 10351 crore allocated to women and child development, and 4173 crore allocated to Water Resources and NamamiGange.
    • Creating universal Social Protection for all Indians: Jan Dhan to Jan Suraksha: Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jivan Jyoti Bima Yojana to cover death risk of 2 lakhs. Senior Citizen Welfare Fund to subsidise insurance premium of vulnerable groups (Old age Pensioners, BPL card holders, Small and Marginal Farmers).
    • Physical Aids and Assisted living Devices for senior citizens living Below Poverty Line.
    • Control on inflation: a big social protection.
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    Skills and Jobs

    Skills and Jobs are the surest way to freedom from poverty. They have been boosted by:

    • Deen Dayal Upadhya Gramin Kaushal Yojana with allocation of 1500 crore.
    • National Skills Mission with 31 Sector Skills Councils.
    • Ease of scholarships and loans through Pradhan Mantri Vidya Lakshmi Karyakram: No Student to miss out from higher education for lack of funds.
    • Several institutes ranging from higher technical education to skills based education announced in the Budget.
    • Encouragement to entrepreneurs to set up micro units: refinance for Micro Finance Institutions from MUDRA Bank (with corpus of 20000 crores and with 3000 crores credit guarantee corpus) through Pradhan Mantri Mudra Yojana. Priority for lending to SC/STs.
    • 7.5% sub target for priority sector lending which will make finance available to entrepreneurs for micro-enterprise.
    • Many measures purposed in Budget for “Make in India” which will result in substantial job creation.
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    Good Governance

    • Need to cut subsidy leakages
      • To achieve this, Government is committed to the process of rationalizing subsidies. The JAM trinity of Jan Dhan, Adhar and Mobile will be used for this.
      • Direct Transfer of Benefits in scholarship schemes to be extended from 1 crore to 10.3 crore.
    • Simplified taxation system.
    • Measures to curb black money: comprehensive new law on black money with stringent provisions.
    • Transparency in public procurement.
    • Public Contracts (Resolution of Dispute Bill) to streamline settlement of disputes in public contracts.
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    Financial Markets and Investments

    • Monetary Policy Framework signed between Government and RBI for inflation targeting. Monetary Policy committee to be set up.
    • Begin deepening of Indian Bond market by setting up the Public Debt Management Agency.
    • Merge Forwards Markets Commission with SEBI.
    • Commitment to introduce a unified Indian Financial Code.
    • Task force to establish a sector-neutral Financial Redressal Agency.
    • Gold monetisation to be introduced.
    • Allow Foreign Investments in Alternate Investment Funds.
    • Boosting savings in the economy: Tax benefits increased for investments in New Pension Scheme (NPS); Sovereign Gold Bond, as an alternative to purchasing metal gold scheme to be developed.
    • Do away distinction between different types of foreign investments particularly between FDI and FPI.
    • Set up autonomous Bank Board Bureau which will search and select heads of Public Sector Banks and help them in developing differentiated strategies and capital raising plans. This would be an interim step towards establishing a holding and investment company for Banks.
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    Infrastructure

    • Sharp increase in outlays of roads & railways.
    • Capital expenditure of public sector units to also go up.
    • National Investment & Infrastructure Fund to be established with an annual flow of
      20,000 crores.
    • Tax free infrastructure bonds for projects in rail, road and irrigation sector.
    • Regulatory reform law bringing cogency of approach across various sectors of infrastructure.
    • Rental Income of REITs from their own assets to have pass through facility; Rationalisation of capital gains regime for sponsors exiting REITs and InvITS.
    • 5 new Ultra Mega Power Projects, each of 4000 MW to be set up in Plug & Play Mode.
    • Thrust for Smart Cities.
    • DMIC allocated 1200 crore.
    • Public Contracts (Resolution of Dispute Bill) to streamline of disputes in public contracts.
    • 175000 MW power by 2022 from New and Renewable Energy Sources (100000 MW Solar, 60000 MW Wind, 10000 MW biomass, 5000 MW Small Hydro).
    • Corporatisation of public sector ports.
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    × The matter shown here is for representation purpose only. Official budget documents are available at indiabudget.nic.in
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    T & C