India, growth and debt reduction top agenda in 2013-2014 budget:
Mumbai (AsiaNews) - A budget for growth, in a very challenging national and global scenario. Clifton Desilva, Christian entrepreneur and director of Altina Securities (a financial consulting firm), thus describes the Union Budget for 2013/2014 presented yesterday by PC Chidambaram, the Indian Minister of Finance. The proposal aims to reduce debt and boost the Indian economy, opening it up further to foreign markets and increase taxation. However, the stock market has reacted negatively, with a fall of more than 1.5%. The Indian Sensex was down 291 points, while the New York Stock Exchange was down 103.
"The Indian economy - explained the businessman is in a slow down mode and the figures released for the third quarter of fiscal 2013 reveals that the economy has grown a mere 4.5% against estimates of 5%. The manufacturing, mining and agriculture sectors have disappointed. However the finance Minister appears hopeful of ending the fiscal 2013 with a GDP growth of around 5.5%. and has targeted a GDP growth of 6.1-6.7% for 2013-14".
Another area that needs great attention he explains, "is to reduce the current account deficit. Though the exports goal has been set at 350 billion, it may not be reached, the ministries of Finance and Commerce are planning to take steps to address the issue "
He does, however, welcome the proposal to apply the Rajiv Gandhi Equity Savings Scheme for the next three years. It is a system of tax savings that aims to bring together the flow of savings of small investors in the domestic market, with a series of tax breaks. In particular, the scheme allows for investments of up to 50 thousand rupees (670 euro), 50% of which is tax deductible, for a savings of up to 5150 rupees.
However, markets, adds Desilva, have reacted negatively, "to the introduction of a surcharge on income above Rs 10 million [1.4 million euro] for the individual, and more than 1 billion rupees [13.9 million euro] for business. This measure could hit the profit margins of companies, but at least it will only last a year. "
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