Budget 2014-15: Highlights

The finance minister, P Chidambaram today presented Budget 2014-15. Here are some of the highlights of the Budget 2014-15 relevant to the ICT sector.

To encourage domestic production of mobile handsets, the excise duties for all categories of mobile handsets is restructured. The rates will be 6 percent with CENVAT credit or 1 percent without CENVAT credit.

Manufacturing sector to be the base of India’s development and all taxes, central and state that go into an exported product should be waived or rebated. There should be a minimum tariff protection to incentiwise domestic manufacturing.

Massive investment in infrastructure needs to be mobilized through the Public Private Partnership.

The National Manufacturing Policy has set the goal of increasing the share of manufacturing in GDP to 25 percent and to create 100 million jobs over a decade. National Investment and Manufacturing Zones (NIMZ) along Delhi Mumbai Industrial Corridor (DMIC) have been announced. 9 Projects had been approved by the DMIC trust.

Liberalised FDI policy in tele-communication, pharmaceuticals, civil aviation, power trading exchange, and multi brand retail to attract large investment. Approval to establish 2 semi conductor wafer fab units.

The government has given approval of IT modernization project of Department of Post costing Rs 4,909 crore. By 2015, all 155,000 post offices will be modernized.

Ministry of MSME will create the ‘India Inclusive Innovation Fund’ to promote grass root innovations with social returns to support enterprises in the MSME sector with an initial contribution of `100 crore to the corpus of the fund.

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