TELECOM INDUSTRY

Group member: Sunil soni Shashank chaturvedi Mukesh Saurabh Kumar

Templates for PowerPoint

Indias Finance Minister P Chidambaram presented the Union Budget 2013-14 in Parliament on February 28, 2013.

*Image via Bing

BUDGET 2013-14
BUDGET
An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals. One of the most important administrative tools, a budget serves also as a (1) plan of action for achieving quantified objectives, (2) standard for measuring performance, and (3) device for coping with foreseeable adverse situations.

BUDGET 2013-14
THE ECONOMY AND THE CHALLENGES
Getting back to potential growth rate of 8 percent is the challenge facing the country. Slowdown in Indian economy has to be seen in the context of slowing global economic growth from 3.9 per cent in 2011 to 3.2 per cent in 2012. However, no reason for gloom or pessimism. Of the large countries of the world only China and Indonesia growing faster than India in 201213. In 2013-14, only China projected to grow faster than India. Between 2004 and 2008, and again in 2009-10 and 2010-11 the growth rate was over 8 per cent and crossed 9 per cent in four of those six years. 11th Plan period had average growth rate of 8 percent, highest during any Plan period, entirely under the UPA Government. High growth rate can again be achieved through cooperation.

BUDGET 2013-14
Fiscal Deficit, Current Account Deficit and Inflation Three Ways to reduce CAD- FDI, FII or external borrowings. $75 billion needed to satisfy the current account deficit. FY 13 plan expenditure was too ambitious says FM. FY 14 expenditure to be 29.4% more than FY13. Current account deficit continues to be high due to excessive dependence on Oil, Coal, and gold imports and slowdown in export.

BUDGET 2013-14
TELECOME Indian Budget 2013-14 did not offer any special support for the struggling telecom industry in India duty increase on mobile phones priced above Rs 2000 and 5 percent duty hike on STB (set up boxes) FDI plummeting by 96 percent to $70.46 million in April to November 2012 period The sector saw decline of bank credit throughout the financial year 2011-12 from 17.77 percent to 15.21 percent

BUDGET 2013-14
TAXES
Relief for taxpayers in the bracket of 2 lakh Rupees to 5 lakh Rupees tax credit of 2000 Rupees to every person with total income up to 5 lakh Rupees Securities Transaction Tax (STT) reduced Additional deduction of interest up to 1 lakh rupees on home loan for first home buyer Surcharge of 10 percent on persons with taxable income exceeding 1 crore rupees

Five sectors likely to benefit from Union Budget 2013-14

Education sector:
The FM allocated Rs 65,867 crore to the Ministry of Human Resource Development, which is an increase of 17 per cent over the RE of the previous year. The Sarva Shiksha Abhiyan(SSA) and the Right to Education Act are firmly in place. The FM proposed to provide Rs 27,258 crore for SSA in 2013-14.

*Image via Bing

BUDGET 2013-14
Infrastructure sector: The 12th Plan projects an investment of USD 1 trillion or Rs 55,00,000 crore in infrastructure. The Plan envisages that the private sector will share 47 per cent of the investment. Some infrastruture companies to be allowed to float tax free bonds. Rs 5000 cr for construction of warehouses Select institution to be allowed issue tax free bonds to raise 50,000 cr to fund infrastructure projects.

BUDGET 2013-14
FM expands RGESS:
The FM proposed liberalising the Rajiv Gandhi Equity Savings Scheme to enable first time investors to park funds in MFs and listed shares and extended tax benefits to three successive years. Also, the limit for investors wanting to invest in RGESS has been raised to Rs 12 lakh from Rs 10 lakh earlier. Under the scheme, an individual with an income of less than Rs 12 lakh would get tax incentives for investing up to Rs 50,000 in the stock market.

BUDGET 2013-14
AGRICULTURE: RS. 27049 cr allocation to the agriculture ministry. Eastern India states to get 1,000 cr for agriculture 4% farm loan scheme extended to private banks Green revolution states to get 5,00 cr towards crop diversification. Rs. 200 cr. Allocated for promoting nutrient rich crops. Rs. 50 crore allocated for farmer producer organisation.

BUDGET 2013-14
WOMEN: Rs 97,000 cr for womens development An all-women bank by October 2013 with an initial capital of Rs 1,000 crore Rs 1,000 crore Nirbhaya Fund, named after Delhi gangrape victim, to empower women Rs 28,500 Cr for tribal women

BUDGET 2013-14
Some other things proposed by FM
Rs 1,000 crore for skill development of 10 lakh youth to enhance their employability For imported cars excise duty increased on these vehicles from 27 to 30 per cent Excise duty constant for all other cars at 12 per cent Rs 37000 cr allocated for Health Care. Allocate Rs 3511 cr to the ministry of minorities MNREGS target Rs 33000 cr To allocate Rs 1106 Cr for alternative medicine industry.

BUDGET 2013-14
Ministry of rural development to get 80,195 cr. Allocates Rs 41,561 Cr. for SC sub-plan, Rs 24,598 cr tribal sub plan. JNNRUM to get 14,873 Cr. Rs 4,727 cr to be allocated for medical education and research. 10,000 Cr for food security bill. Allocation of 50 crore to Ministry of Textile to incentivise setting up Apparel Parks within the SITPs to house apparel manufacturing units.

THANK YOU