Finance Minister Nirmala Sitharaman Friday said India needs to make structural reforms to achieve USD 5 trillion economy in the next few years.
Presenting the first Budget of the Modi government in itssecond term, she said the Indian economy, which stood at USD 1.85 trillion fiveyears back, has reached USD 2.7 trillion now, and is within capacity to reachUSD 5 trillion in the next few years.
She said the interim budget focused on 10-point vision toboost economy. In the current year, India’s economy will grow to become USD 3trillion economy, sixth largest in world.
“We need to invest in infrastructure, digital economyand job creation in small and medium enterprises,” Sitharaman said.
She said that in terms of Purchasing Power Parity (PPP),India has become the third largest economy in the world after the US and China.
The minister emphasised the need for structural reforms for achieving USD 5 trillion economy.
BUDGET HIGHLIGHTS
* Surchargehiked on individuals with taxable income above Rs 2 cr
* Effectivetax rate on Rs 2-5 crore taxable income hiked by 3%
* Effectivetax rate on over Rs 5 crore taxable income hiked by 7%
* Companieswith turnover up to Rs 400 cr to pay 25% tax
* To launchautomated, faceless assessment of tax
* To makepre-filled tax return forms available
* Legacydispute resolution plan to settle litigation in excise, service tax cases
* Fiscaldeficit for 2019-20 at 3.3% of GDP
* Grossmarket borrowing pegged at Rs 7.1 lakh crore
* GSTcollections pegged at Rs 6.63 lakh cr
* Disinvestmenttarget pegged at Rs 1.05 lakh cr
* Dividendincome from state-owned companies seen at Rs 57,486 cr
* Dividend/surplusfrom RBI, financial institutions at Rs 1.06 lakh cr
* Customsduty on gold, precious metals hiked to 12.5%, from 10%
* Customsduty on stainless steel hiked to 7.5% from 5%
* SpecialAdditional excise, road cess on petrol, diesel hiked by Re1/litre
* Taxdeduction of Rs 1.50 lakh on e-vehicle loan interest
* Extra Rs1.50 lakh tax deduction on affordable housing loans
* RBI,banks to absorb merchant discount rate at small shops
* To imposebasic excise duty on tobacco products
* Exciseduty of Rs 5/1,000 sticks imposed on filter cigarettes
* India now6th largest economy vs 11th five years ago
* India tobecome USD 3 trn economy in FY20
* Wellwithin capacity to reach USD 5-trln economy in few years
* To soonannounce policy package for power tariffs
* Proposedmore power to RBI over NBFCs in Finance Bill
* One-time, six-month guarantee to PSU banks to buy some NBFC loans
* Strategicdivestment of CPSEs to remain a priority
* Mullingbelow 51% stake in PSUs on case-to-case basis
* Governmentto re-initiate process of Air India sale
* Plans toincrease minimum public shareholding in listed cos to 35%
* Stepstaken for easing angel tax issue of startups
* Startups,investors not to face scrutiny for share premium if they file return.