Pre-budget scenario/expectations and its impact on Indian economy for 2012- (OUTLINE)       SWOT of Indian economy in brief (to understand the problems and to expect the remedy on the same) Areas covered – Expectation as per general section of public ( Aam Aadmi ) Expectations of MSME sector Expectation of farming sectors Expectation of industries including (Bank, Textile,Oil and Natural gases) etc

SWOT ANALYSIS



Strength of Indian economy-

 A large pool of skilled labour.

 Young dynamic entrepreneur and educated class of which is leading the opening of market for outsiders and also enhancing the scope of services in abroad.

 Huge amount of natural resources.

Weakness

 As per the Report given by the Ambassador of WTO the problem faced in India is  -Lack of transparency, huge level of corruption, delay in implementation of policy, lowering the rank of India to 132 in comparison to other countries (Doing India Business Report 2012 ), lack of fund for infrastructure of India,, restriction on FDI FII etc.

Opportunities

 Vision of India 2020 can become reality by emerging the number of areas and by overcoming those weakness  Need is only to have clear and honest step rather than decision taken for own political advantage.

Threats

 Increasing trade cycles in Indian economy (inflation and recession) powers  Foreign exchange fluctuation which is itself a result of –  High interest rate, high inflation ,current a/c deficit, political uncertainty

Expectations of all but at what cost??????

        Every other sector wants its own advantage and benefit from the budget….. But the decision should be taken only after considering the present economy conditions that are lowering down of GDP @ 6.9% at last quarter of 2011 Threat of facing the global challenge like recession and decreasing the value of rupee with respect to dollar Increasing POL (petrol oil and Lubricant) cost Facing competition from china and other countries Problems faced by MSME and farming sectors Need for increase in infrastructure area Lowering of agriculture contribution in GDP reached to 18%

What's the need in present budget ? (industry or sector wise)

   Serious steps are required to provide help to the-

MSME sectors

(Because we should not forget the role of MSME 45% of India's manufacturing and 40% in export and almost 70 million are getting employment out of it) hence loan assistance up to the suspension of 2 years should be given which will be helpful in managing working capital and shutting down/NPAs can be controlled.

As the new innovations are coming up everyday IPR is becoming the need of an hour ..provision to protect the IPR rights for MSME should be brought in to face the inadvertent challenges.

Other Industrial expectations and relief -



Textile industries-

 This industries need really a boon to recover , hence basic custom duty on power, steam coal , thermal coal should be removed..(suggetion can be given that state govt. should also reduce or remove the vat on textile products) this will help in reducing the cost of product.

Fertilizing and farming sector

   it is suggested that custom or import duty on liquefied natural gas should be ended to support

fertilizers and power plants

For farming sectors allocation of fund/loan assistance should be properly monitored.

Proper system of determining the minimum support price should there to see trade cycles.

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Oil and petroleum sectors-

- -LNG should be given the status of declared goods to reduce the state tax Crude oil and petro products can be covered in the list of GST Use of natural and eco friendly fuel to be encouraged for that uniform rate of tax to be maintained in all the states To increase the revenue of government and to the ecofriendly impact excise on diesel vehicle can be increased

Corporate sectors

   Companies which are engaged in the function of CSR must be given the deduction up to 150% to increase there social aspect ( also its reporting must be directed by company secretary) Corporate tax for domestic companies must be decreased at least to level of 25% (without surcharge) and also to foreign companies relatively …. Reason is to increase the fund availability with them and to encourage their participation in infrastructure In the same way MAT may also be reduced from 18.5% to 15%  (This sector is to be beneficiate because to have fund for infrastructure and their participation in this regard)

Social sector expectations



Malnutrition of children, child labour, farmers' suicide and problems witnessed by women working in Self-help Groups.. Surely these areas need a special attention in the Budget.

Expectations of general class (aam aadmi )

     Surely there is a need to give some extent of relief to salary class or middle class….from increasing inflation situation Which may be Increasing the deduction limits u/s 80C to 1.5lac

TDS limit on the interest from the deposit of banks must be increased from 10000/ - to 30000/- so to increase the saving and depositing habits .

Either deduction on the interest from bank deposit should be allowed with introduction of separate section To see the rising cost of medical exemption limit of medical reimbursement must be raised to 50000/-

Contd…..

    Limit of leave encashment exemption should be revised for supporting the retiring of non govt employees up to Rs. 10 lac Interest on the housing loan in case of self occupied property should be raised to Rs 3 lac Investment on certain bond u/s 54 EC can be increased to control the inflationary situation To increase the revenue of department tax deduction should be raised upto 30% in case of non submission of PAN .

Combine efforts/Steps in part of Government and RBI

  The most important part is to relax the monetary policy and the tighten the fiscal policy its unfortunate that in our country its reverse….

From the resent step of RBI to reduce the CRR (5.5%) this can be understand that need to increase the liquidity is been identified but this will be successful only when the fiscal consolidation should be taken properly by the Government.

Conclusion

 Whatever be the outcome of the budget 2012……. honest allocation of funds and responsible effort is always welcome for overall growth……..

Thanking you …..to all……….