Union Budget 2021 Updates: Textile body seeks customs duty hike on man-made yarns in Budget

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Realty sector seeks sops in Union budget

The real estate sector wants stimulus in the form of sops in the upcoming Union Budget to boost housing demand
The demands include:
Personal tax relief, tax rebate on housing, extension of interest subvention, GST waiver, infrastructure status for the realty and easing liquidity for the sector

Government may announce formulation of policy for toys sector in Budget 2021

Textile body seeks customs duty hike on man-made yarns in Budget

Developers demand govt to hold back basic customs duty on solar equipment

Solar power developers in the country have demanded that the government should hold back the imposition of basic customs duty (BCD) on solar equipment for the time being in the forthcoming budget. They fear that this could derail the government’s ambitious target of having 175GW renewables by 2022, requiring an investment flow of Rs 1.75 lakh crore.

Department of Expenditure approves Rs 660 crore additional funds to MP

“A list of capital projects with an estimated cost of Rs 660 crore was approved by the Department of Expenditure. Fifty per cent of the approved amount (i.e. Rs 330 crore) has also been released to the state (Madhya Pradesh) as first instalment for the approved projects,” FinMin said in a statement.

Delivery on budget promises(2018-19): National Agricultur Market (e-NAM)

National Agriculture Market (eNAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities.

  • All the 585 Markets have been integrated with e-NAM portal by March 2018
  • Another 415 Markets have also been integrated into e-NAM platform by May 2020
  • A total of 175 commodities are available for the trade
  • Source: FinMin

Mobile industry demands GST rate cut

Industry body India Cellular and Electronics Association (ICEA) has renewed its demand for reducing Goods and Services Tax (GST) for the mobile industry ahead of the Union Budget to be presented on February 1, reports IANS.

What renewable energy industry wants from Budget?

The renewable energy industry is hoping that the upcoming Union budget will provide clarity on implementation of the long-pending basic customs duty on solar cells and modules, which they said would fast-track investments in the sector.

Delivery on budget promises(2020-21): NBFCs and HFCs

Special Liquidity Scheme for NBFCs and HFCs

  • Special Liquidity Scheme for NBFCs and HFCs to improve liquidity and to avoid potential systemic risks for the financial sector was launched by on July 1, 2020
  • Scheme was to remain open for three months for making subscriptions by SPV, which ended on September 30, 2020 and recovery of dues was to be done in the next three months upto December 29, 2020
  • All operations of the Scheme have been completed within the targeted time period
  • A total of 7,125.51 cr has been disbursed by way of 28 instruments to 23 NBFCs/HFCs
  • Repayment of principal and interest amounting to 7,249.60 cr for all instruments has been received
  • Source: FinMin

What India Inc wants from Budget?

Majority of India Inc expects the Union Budget 2021-22 to focus on giving a boost to infrastructure while offering simpler tax regimes to promote ease of doing business, according to a survey conducted by Deloitte Touche Tohmatsu.

Textile body seeks customs duty hike on man-made yarns in Budget

  • The Northern India Textile Mills’ Association (NITMA) has urged the government to raise customs duty on man-made yarns to 10 per cent in the upcoming Union Budget.
  • The customs duty on man-made yarn is currently at 5 per cent. According to the industry body, monthly average imports of Virgin Polyester Spun Yarn have increased manifold from 2015 to 2020. Imports from Vietnam alone have increased over 100 times, as per NITMA.

Real estate sector seeks sops in budget 2021

The demands include personal tax relief, tax rebate on housing, extension of interest subvention, GST waiver, infrastructure status for the realty and easing liquidity for the sector, a top Credai Bengal official said

FM may announce policy for toys sector

The government may in the Budget next week announce formulation of a dedicated policy for the toys sector to boost domestic manufacturing, sources said. They said the policy will help in creating a strong ecosystem for the industry in the country and also attract startups.

Delivery on budget promises(2020-21): Electronics & Information Technology

Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing (Source: Finance Ministry)

  • Scheme proposes to provide production linked incentive of 4% – 6% on incremental sales of specific categories of electronic goods manufactured in India
  • Scheme approved by the Union Cabinet on 20th March, 2020
  • 16 companiesgot approved under the scheme
  • The projected outcome over the next 5 years:
  1. Production: 10.5 lakh crore
  2. Exports: 6.5 lakh crore
  3. Employment: More than 2,00,000 direct jobs

Investors keen on opportunities in India

Global investors are keen on investing in startups in India, with over USD 2 trillion worth of liquidity being available for entrepreneurs as they tap into opportunities across sectors like health-tech, ed-tech and social commerce, according to industry executives.

Fiscal deficit of states to hit a peak

Contraction in tax collections for state governments due to Covid-19 pandemic-induced lockdowns and consequent slump in economic activity will result in a near four times expansion in their revenue deficits this fiscal. This will not only expand states’ aggregate gross fiscal deficit (GFD) to an all-time high of Rs.8.7 lakh crore, or 4.7% of GSDP and increse credit risks of states, according to ratings firm Crisil.

What logistics players want from Budget?

  • The logistics industry which has been impacted by the pandemic expects the upcoming Union Budget to announce a working capital package for the sector.
  • The industry also expects major investment announcements for infrastructure to boost the sector, reports IANS.

Indians save during pandemic

While Covid pandemic and the lockdowns that came with it disrupted a lot of lives and even business, it may just have a silver lining. Indians ended up saving additional $ 200 billion during this time, a UBS report said.

Recovery in services jobs

The services sector, barring education, witnessed a near-complete recovery in employment by the December quarter after a significant dip earlier in the year due to the Covid-19 pandemic, the Centre for Monitoring Indian Economy said.

Delivery on budget promises(2020-21): Electronics & Information Technology

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

  • Scheme proposes to provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products
  • Scheme approved by the Union Cabinet on 20th March, 2020
  • New investment in electronics Sector envisaged to the tune of Rs 20,000 crore
  • Scheme may help in increasing the Domestic value addition from 20% to 40%
  • Source: Finance Ministry

There is a need to postpone basic customs duty on solar modules till domestic manufacturers mature. Considering the present disruption of the supply chain due to the COVID-19 pandemic, dependence on importing modules must be reduced, precisely targeted through the Government of India through its Atmanirbhar initiative

– Shekhar Dutt , Director-General Solar Power Developers Association (SPDA)

The pandemic lesson for Budget 2021

  • The pandemic has emphasised the key role of healthcare in the lives of people, underlining the importance of higher budget allocation for improving the healthcare infrastructure in the country, sectoral players said.
  • The pharma sector which has played a leading role as the ‘pharmacy of the world’ said it expects support and incentives especially for research & development and innovation in the coming budget.

Easing of import duty payment timelines likely

The government is evaluating relaxation of payment timelines of import duties so that many importers can hold on to their authorised economic operator, or AEO, status, a government official told ET.

Delivery on budget promises(2018-19): Health Sector

Health Wellness Centres (HWCs)

  • More than 56,311 HWCs are operational as on 13th January, 2021
  • So far, approvals for more than 1,05,000 HWCs have been accorded

FM may unveil mega textile park scheme

The finance and textiles ministries are in discussion over the scheme that will offer incentives to investors that set up facilities in these parks as also the developers. “We have recommended these to the finance ministry and, if accepted, they could benefit India’s textiles sector,” said an official.

NBFCs look for TDS exemption on interest income

About a dozen non-banking finance companies (NBFC) have approached the finance ministry seeking an exemption from Tax Deducted Source (TDS) on their interest income. The facility is available to high-street banks.

PM Modi likely to address the World Economic Forum on 28th Jan

New investment in Rajasthan

Electric two-wheeler maker Okinawa Autotech plans to invest Rs 150 crore in setting up a new manufacturing unit in Rajasthan, and roll out fresh products as it sets a target of selling 1 lakh units in the next fiscal year, according to a top company official. (PTI)

What luxury car makers want from FM?

Luxury car makers Mercedes-Benz, Audi and Lamborghini expect the government to lower taxes on automobiles in the upcoming Budget, saying the premium segment of the auto industry has not been able to grow due to high taxation besides being hit hard by coronavirus.

Delivery on Budget promises(2014-15): Renewable energy

Scheme for development of Solar Parks & Ultra Mega Solar Power Projects

  • The scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” was rolled out on 12-12-2014
  • Under this scheme, it was proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity within a span of 5 years starting from 2014-15
  • The capacity of the Scheme has been enhanced from 20,000 MW to 40,000 MW
  • Ultra Mega Solar Power Projects taken up in all these State except Ladakh
  • Cumulative capacities of Solar Power Projects are 5389 MW in Rajasthan; 3918 MW in Gujarat and 4315 MW in Tamil Nadu
  • Government has planned to establish 10,000 MW Solar/Wind hybrid projects in Ladakh for which various actions have been initiated
  • Source: Finance Ministry

Resolving demand-side issues

“It is high time to change gears and focus on the demand side as well, lest the ongoing recovery begins to lose steam. There is nothing wrong in addressing the supply-side issues, as it was necessary to restore/augment the broken supply chains. But, lack of adequate demand may jeopardise the recovery and may even lead to a second-round impact,” Sunil Kumar Sinha of India Ratings warned in a note on Friday.

For Hassle-free access of Budget documents

Finance Minister launched the “Union Budget Mobile App”. The mobile App facilitates complete access to 14 Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc. as prescribed by the Constitution.

RBI expected to rein-in rising rupee

  • The Reserve Bank of India (RBI) is expected to rein in any sharp appreciation in rupee due to hefty FIIs’ inflows during the upcoming week.
  • Experts contend that effects of large FIIs’ inflows will be neutralised by the RBI as it aims to keep the country’s exports competitiveness.

A modified parking plan for MPs vehicles?

The MPs will be informed through WhatsApp and telephonically about the parking arrangements and vehicular movement in and around the Parliament House complex well in advance, to ensure their smooth movement during the session which will conclude on April 8 with a recess in between from February 15 to March 8, reports IANS.

Attention GST Taxpayers

Due date for filing Form ITC-04 in respect of inputs/capital goods sent to a job worker or received from a job worker, during the quarter (October to December, 2020) is January 25, 2021. (Source: Finance Ministry)

A demand from mobile industry

Industry body India Cellular and Electronics Association (ICEA) has renewed its demand for reducing Goods and Services Tax (GST) for the mobile industry ahead of the Union Budget to be presented on February 1.

Karnataka’s budget outlay might dip by at least 10%

With more than Rs 30,000 crore revenue shortage, Karnataka is staring at downsizing its outlay by at least 10 per cent this fiscal 2021-22, a senior official of the Finance department told IANS.


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