Union Budget 2018: Impact on Smartphones in India

The entire nation has their eyes set on the fifth and last full-fledged Union Budget in Narendra Modi’s government to be presented in Lok Sabha. This Union Budget 2018 will be presented on February 1, 2018, by Mr. Arun Jaitley, our Finance Minister. This Union Budget has a lot of significance as it is presented after two big financial decisions made in Mr. Modi’s government- Demonetization and GST. The previous year’s budget was also very unique as railway budget and general budget were presented on the same day.

Everybody is expecting some statement to be made about their respective sector in this Union Budget. There is anticipation that mobile phones may become cheaper after February 1, 2018.

Union Budget 2018: Smartphones to go cheaper?
Mobile phones are seen in every common man’s possession, especially youth. Youth is expecting cheaper handsets for use. The CEO and Director of COMIO Smartphones, Sanjay Kalirona said that the GST has to be reduced from 12%-5% and offer tax reductions to promote the mobile industry market in India. This should help in making mobiles affordable to the common man, especially youth. All the industrialists are looking up to Union Budget’s support for acceptable budgetary allocation for the growth of the mobile industry.

Budget 2018: In first 8 months of FY18, states have gone slow on capex

BUDGET 2018– Hemmed by rising expenditure on account of farm loan waivers and Pay Commission proceeds, state governments have slowed down the pace of capital expenditure in the current financial year.

An analysis of 17 state government accounts reveals that nine states have so far spent only 36 per cent of their budgeted capital expenditure in the current financial year (April to November), compared with 47 per cent over the same period the previous financial year. Capex by two other states is marginally lower than last year, while only six states have spent a greater proportion of their …

Budget 2018: All eyes on Arun Jaitley’s announcements for the rural sector

As Finance Minister Arun Jaitley gets down to deliver his fifth annual Budget 2018  financial year, all eyes will be on his announcements for the rural sector which is going through a downturn in the last few years. Two consecutive droughts along with a sharp fall in incomes have turned agriculture unprofitable resulting in massive agitations in several parts of the country.

According to some estimates, in the 2017 Kharif season alone, an estimated Rs 360 billion has been denied to farmers for not being able to sell their produce at the state-mandated Minimum Support Price (MSP). The fall in farm incomes not only threatens to dent the ruling BJP electorally but could also raise a big question mark on the government’s promise to double incomes by 2022.

In this perspective, Business Standard looks at budgetary allocation for agriculture and allied sectors in the past few years under the UPA and first years of the NDA along with agriculture growth during these years.

Budget 2018: Oil ministry seeks cut in excise duty on petrol, diesel

India’s oil ministry is pushing for a cut in excise duty on petrol and diesel in the upcoming budget 2018/19 to cushion the impact of rising oil prices on its vast consumer base, two oil ministry officials told Reuters on Monday.

Prime Minister Narendra Modi, who faces elections in key states later this year, and a nationwide election in early 2019, has faced pressure over a rise in retail prices of petrol and diesel to a record level.

India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for about 40-50 percent of the pump prices.

A litre of petrol costs 72.23 rupees ($1.13) while diesel is sold at 63.01 rupees. Petrol and diesel account for about half of India’s refined fuel consumption.

“We can only recommend. It is up to the finance ministry to take a decision,” a senior read more

Budget 2018: Agri-credit likely to increase to Rs 11 trn for better flow

The farm credit target is likely to be raised by a whopping Rs 1 trillion (Rs 1 lakh crore) to a record Rs 11 trillion (Rs 11 lakh crore) in the Budget 2018-19 to improve credit flow in the agriculture sector, according to sources.

In the current financial year, the government has kept a credit target of Rs 10 trillion (Rs 10 lakh crore). Of which, Rs 6.25 trillion (Rs 6.25 lakh crore) has already been disbursed in the first six months till September 2017, the government data showed.

“The government’s priority is agriculture. There is a possibility that the credit disbursal target for the agriculture sector will further be increased to Rs 11 trillion (Rs 11 lakh crore) for the next financial year,” sources read more

Budget 2018: Rs 30 bn for 1.2 mn CCTVs in all 11,000 trains, 8,500 stations

In its endeavour to provide a safe and secure travel experience to passengers, India Railways is pitching for the procurement of about 1.2 million CCTV cameras to ensure state-of-the-art surveillance systems in all trains and stations across the country.

The Railways will make a provision of around Rs 30 billion (Rs 3,000 crore) in its budget 2018-19 to install CCTV systems in all 11,000 trains — including premier and suburban services — and all the 8,500 stations in the Indian rail network, to provide safety and security at rail premises.

As per the plan, while each coach will have eight CCTV cameras covering the entry gates, aisle and vestibules, all crucial points at stations will have the read more

Budget 2018: This is what the automobile sector wants from FM Arun Jaitley

Budget 2018– Key developments In spite of a volatile regulatory environment, FY2018 has been a healthy growth year for India’s automotive industry
Industry volumes grew by about 11.3% in April-Dec on a year-on-year basis
Passenger vehicles segment rose around 8.1%, CV by around 15.2%.
Total two-wheeler market grew 11.8%, while exports grew at a healthy rate of 13%.
The automotive component industry continued to thrive due to a sharp growth in OEM demand and attractive exports growth.
Technology change and its importance have become apparent to the industry.
Safety and fuel efficiency came to the centre stage with expected regulation changes — to BSVI by 2020 being the steepest challenge.
Graph Industry ask Demand side Measures for employment generation: Core focus of the Budget is likely to be on employment generation led by public spend.Addressing rural distress and triggering private investments will be other key priorities.
Credit availability to rural sector: With lowering interest rate, the government is expected to take aggressive steps to manage high banking NPAs. Improving credit availability at the grassroots through rural finance programmes as well as focus on small businesses is read more.

Investing in MFs: Here’s how Budget 2018 could impact the bond market

Budget 2018- “The safest way to get decent returns is via mutual funds.” I’ve heard versions of this statement from half-a-dozen friends in the last year. Most of them are invested in debt mutual funds as well as diversified equity funds. It’s true that there is no safer way to get a decent nominal return. A bank fixed deposits offers much less interest.

Real estate is in the doldrums. Gold has been almost flat through 2017. But that safety is relative. Everyone understands that equity funds carry risk but debt mutuals can also suffer loss of capital. Mutual …read more

Budget 2018: Full text of all Budget speeches delivered since Independence

On February 1, Finance Minister Arun Jaitley will present the Budget 2018, his fifth and the Narendra Modi-led National Democratic Alliance (NDA) government’s final full Budget in the ongoing term.Budget 2018-19 will also be important in many respects because India has just had a fiscally difficult year and might need its finance minister to put things in order through a tight leash on the economy.

However, there are also some who say that Jaitley might be impelled to dole out freebies in Union Budget2018, in spite of the fisc, out of political compulsions – to shore up popular support for the ruling coalition going into the 2019 Lok Sabha elections.

ALSO READ: Budget 2018 needn’t be populist
Whether Union Budget 2018-19 will be a fiscally prudent Budget or a populist one? A clearer picture on this will emerge only on Union Budget 2018 date February 1, with FM Arun Jaitley speech on Budget2018. As of now, Budget 2018 expectations have been pouring in from various stakeholders of the read more

Budget 2018: This is what the technology sector wants from FM Arun Jaitley

• Newer technologies such as artificial intelligence, cloud, etc, are changing the rules of the game for incumbent IT players

• Impact of new regulations such as H1B, GDPR could result in higher deployment costs as well as increased compliance costs

• Convergence in online-offline business models in the e-commerce sector, largely due to heightened competition,What industry wants

• Adjustments to past years’ income emanating from APAs should be recognised as income of those years itself

• Equalisation levy should be treated as tax on income and be eligible for tax credit in a foreign country to the overseas online ad businesses

• Extend the exemptions granted to STP units in relation to procurements,as before the GST roll-out

• Tax collected at source (TCS) under the GST has been suspended till March 2018 for e-commerce companies. This provision should be removed, given their onerous compliance obligations

• Mechanism for entering into an advance agreement (akin to APA) with tax authorities for eligibility of tax holiday claim should be read more