Contents PartA:MacroOverview4 PartB:Taxation13 KeyTaxAnnouncementsinUnionBudget2019-2014 PartC-SectoralAnalysis21 AgricultureandAlliedActivities22 Art&Culture26 Automobiles&ElectricVehicles27 BlueEconomy28 FinancialServices40 CapitalGoods43 CapitalMarkets45 Chemicals&Petrochemicals49 CivilAviation51 Defence54 Drones56 Education58 Electronics&MobileManufacturing62 Environment63 ExternalTrade65 FinancialServices66 FMCG,Retail,InternalTrade&ECommerce70 FoodProcessing72 GeospatialTechnologies75 Healthcare77 HomelandSecurity84 InformationTechnologyandTelecommunication87 Media&Entertainment89 MicroSmallandMediumEnterprises91 Mines&Metals98 Oil&Gas99 Pharmaceuticals100 Power&RenewableEnergy101 Publishing104 RealEstateSectorandUrbanInfrastructure106 RuralEconomy108 Science&Technology109 SkillDevelopment111 StartUp&Innovation115 Sports&YouthAffairs117 Textiles118 TransportInfrastructure120 Tourism123 Water&Sanitation125 PartA:MacroOverview MacroOverview TheUnionBudget2020-21wasannouncedamidhighexpectationsandespeciallysowhentheeconomyisgoingthroughtestingtimes.TheHon’bleFinanceMinisterhastreadedthetightropesuccessfully,maintainingabalancebetweenthevariouscommitmentsofthegovernment. Withlimitedleversinhand,theannouncementsmadedisplaythatthegovernmenthastherightpulseofwhatneedstobedoneongroundtofurtherstrengthenfoundationofoureconomy.WithEaseofLivingasacommonthreadwovenaroundthethreekeythemes–AspirationalIndia,EconomicDevelopmentandCaringSociety-thebudgetlaysouttheroadmapforfuture. Theemphasisonagriculturesector,MSMEs,entrepreneurship,infrastructureetciswellplacedanddoesinfuseoptimism.Goingforward,withadeterminedfocustowardsimplementation,wearehopefulthattheeconomywouldsoongetbackontherecoverycourse. Theadvanceestimateof5.0%GDPgrowthforFY20putoutearlierthisyearisacauseforsomeunease–thegrowthis2.0-2.5%belowpotential.TheEconomicSurvey2019-20tabledadaypriortothebudgetestimatesgrowthtoreboundto6.0-6.5%in2020-21onbackofimplementationofreforms.FICCIinitsrecentlyreleasedEconomicOutlookSurveyhadputacrossagrowthestimateof5.5%forthesameyear. Weappreciatethegovernment’sdecisiontowardsrelaxingthefiscalgapfortheyear2020-21,whichwehopewillbeusedtoboostruraldemandandinfrastructureinvestments.FICCIhadbeensuggestingtothegovernmenttobeopentoafiscalexpansiongiventhepresentgrowthconsiderations.Also,therevisioninincometaxslabsshouldgivesomepushtothesubduedconsumptionactivity. However,wewerehopingforaraisedcorpusforMGNREGAasthiswouldhaveputmoreincomedirectlyinthehandsoffarmers’.Also,thegovernmentcouldhaveconsideredfront-loadingthepaymentsunderPM-KISANinthecomingyear.Thesecouldhavebeenbeamajorsentimentbooster.Pushingconsumptionisreallycriticalandourgroundlevelsurveysindicateweakdemandasoneofthemainconstrainingfactorsforbusinesses. Furthermore,theemphasisonwealthcreationiswelltaken.Wewerealsoencouragedbythepro-businessandanti-cronytoneputoutintheEconomicSurveyandtheimportancegiventotheroleofindustryinmeetingtheUSD5trillion. Theindustryisgoingthroughadifficultperiodwithpersistentstressonaccountofbothglobalanddomesticfactors.Wehailtheemphasisontheneedtofocusonmanufactureofnetworkedproducts,electronics,medicaldevicesandtechnicaltextiles.ThesearelowhangingfruitsforIndiaandholdimmensepotentialtowardsjobcreation.Infact,FICCIinitssuggestionstothegovernmenthadrecommendedfocusonthesesectors.However,wewerelookingforamentionoftheNewIndustrialPolicy. EntrepreneurshipisthebackboneofNewIndiaandtheintentofthegovernmenttoremoveanyroadblocksandcreatemoreopportunitiesforentrepreneursiswellreceived.TheproposaltosetupanInvestmentClearanceCelltoprovide‘end-to-end’facilitationandpre-investmentadvisoryserviceswillbeofgreatsupporttothenewstart-ups. Industry,Commerce& Investment Economic Development Infrastructure NewEconomy •AtaskforcetosuggestonloweringMMR,improvingnutritionlevels •Morethan6lakhanganwadiworkersequippedwithsmartphones •KnowledgeTranslationClustersforemergingtechnologysectors •NationalMissiononQuantumTechnologiesandapplications •NationalLogisticsPolicytobelaunchedsoon •103lakhcroreNationalInfrastructurePipelineprojectsannounced •Schemestopromotemanufacturingintechnicaltextiles,electronics •Settingupofaninvestmentclearancecellforendtoend •Apprenticeshipembeddedcoursesin150highereducationinstitutes •Specialbridgecoursesforthoseseekingemploymentabroad Agriculture,Irrigationand RuralDevelopment AspirationalIndia Wellness,Water andSanitation EducationandSkills •ViabilitygapfundingproposedforsettinguphospitalsinPPPmode •ExpansionofJanAushadhiKendraSchemetoalldistrictsby2024 •DetailedSixteenActionPointsagendaannounced EaseofLivingBouquet Women,ChildandSocial Welfare CaringSociety CultureandTourism EnvironmentandClimate Change •Encouragingstatesfortakingstepstoprovidecleanerair •CoalitionforDisasterResilientInfrastructurelaunchedinSep2019 •5archaeologicalsitestobedevelopedasiconicsites •EstablishIndianInstituteofHeritageandconservation Source:UnionBudget2020-21 Also,thestresslaidonNewEconomy–onewhichisbasedoninnovationsanddisruptivetechnologieslike3D