In the current wave of Robinhood mentality this Budget can be termed safe and nothing that would cause a severe damage to the economy or the industry. Not a single announcement was made to win votes in the forthcoming elections, as most of the proposals in the rural and agriculture sector are part of the path taken by the government in the last year’s Budget. This Budget has only reinforced the schemes announced last year.
Barring the surcharge on income earned above Rs 50 lakh to Rs 1 crore, the government refrained from broaching the long-term capital gains tax, and gift tax issues which are also a positive takeaway from the Budget.
As far as adoption of technology for doubling the agrarian income by 2022 is concerned, I would say the Budget definitely touched upon the point, but it needs to be seen if the adoption would be towards sustenance of the industry or to make the industry more efficient. If it’s latter, it will surely improve the agrarian income. The government definitely has the intent to bring technology to agriculture, but the Budget did not address it completely.
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A lot of buyers were holding up their purchases for the Budget to get over after demonetisation of high-end currencies impacted purchases. If the government announces the date for rollout of GST soon, it would further help in creating the momentum for the sector to take off. Buyers will not have to wait for another five months till July 1 for GST rollout.
The increase in incentives under the FAME India Scheme for hybrid cars in the Budget to Rs 175 crore from Rs 122 crore will create enough demand for hybrid vehicles.
As told to Vikas Srivastava