Mar 1, 2003|
Budget Reactions from Mr. Ravi Uppal, Vice Chairman & MD, ABB India
On the macro level it is a budget aimed at the common man and has something for every sector i.e. infrastructure, agriculture, industry and services.
The budget should see the return of an overall ‘feel good’ factor and aims at increasing the spending power of consumers through several benefits by way of income tax relief, medical benefits, LTC, removal of dividend tax etc
Fiscal deficit continues to remain high and here the focus must remain on the quality of the deficit i.e. Infrastructure investment as opposed to government expenditure.
It is focused on stimulating consumer demand, which should have a multiplier effect and in turn fuel industrial growth.
On the infrastructure front , a significant project outlay (Rs 600 bn) has been announced , focusing mainly on roads, airports, ports, water etc. with private sector participation
Housing & construction have been given a boost – this is good for derived demand and infrastructure development.
Core sector industries should benefit along with others like automobiles, textiles, white goods, IT, telecom etc. and increased focus on healthcare and tourism.
Reduction of peak rate in customs duties from 30% to 25% and simplification of excise duties to a three-tier structure are positive moves from an industry perspective.
Although the dividend tax has been abolished the burden has been shifted on to corporates through distribution tax.
All listed equities acquired from 1st March 2003 and sold after lapse of one year or more have been exempted from capital gains tax.
Procedural simplifications aimed at cutting down bureaucracy & red-tape should assist in speeding up transactions and helping the economic recovery gain momentum. Moreover the FM has reposed greater trust in the people.
The FM once again reiterated the intention of passing the Electricity Bill in this session. This will go a long way in giving more structure and direction to the power sector and laying out a blueprint for the sector reform process which is already underway
The budget was largely silent on specific power sector outlay and distribution reforms e.g. APDRP funding etc.
There is a provision to extend the mega power project benefits to all generation projects that meet the mega power project criteria, in order to give a fillip to power generation. This in turn has an effect on follow through transmission & distribution.
More Views on News
Mar 30, 2017
NTPC declared results for the quarter ended December 2016. The company reported revenue growth of 10.9% while profits declined by 7.5% YoY.
Nov 23, 2016
NTPC declared results for the quarter ended September 2016. Here is our analysis of the results.
Nov 23, 2016
Power Grid Corp (PGCIL) declared its results for the quarter ended September 2016. The company reported a revenue and profit growth of 28% YoY and 32% YoY respectively.
Sep 29, 2016
Power Grid Corp (PGCIL) declared its results for the quarter ended June 2016. The company reported a revenue and profit growth of 31% YoY and 35% YoY respectively.
Sep 29, 2016
NTPC declared results for the quarter ended June 2016. Here is our analysis of the results.
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 10, 2017
Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407