comprehensive analysis of indian budget 16 17

February 29, 2016

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COMPREHENSIVE ANALYSIS INDIAN BUDGET2016-2017

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1.FORWARD

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FOREWARD

The Union Budget of 2016-17 was the second full budget presentedby the Modi led government and was in the response to mountingexpectations of investors, both domestic and foreign.

Although, the financial year 2015-2016 did not see much headwayin the biggest and long pending reforms like Goods and Service Tax,Land Aquisition Bill and Bankruptcy bill, yet, Honorable FinanceMinister still had lot many expectations to answer from theindustry, common man and the investors. Reduction in corporateincome tax rates while rationalising the exemptions and deductionswas one of the key aspect to ponder upon. Other balancing acts thefinance minister is expected to manage are between economist’soutlook on fiscal deficit and demands of industry for increasedspending, distressed sectoral demands like agriculture, acts tofurther accelerate Make in India drive by pushing manufacturing,power and infra and of course overall further ease in doingbusiness.India’s 7.6 percent growth rate in GDP for year 2015-2016 was thegreen shrub in the global parched economies. InternationalMonetary Fund mentioned India to be in the bright spot. However,exchange rates are under a huge pressure and also the investorsentiments seems to be very pessimistic evidently visible inplummeted stock market in the recent days. The Finance Ministerwas supposed to walk a tightrope while delivering this budget.

The budget clearly did not disappoint as it gave due importance toall needy and focused sections of the economy and tried to enhancethe ease-of-doing business while keeping its focus on infrastructuredevelopment.

Overall, a balanced budget to support theneeds of the stressed sectors whilesimultaneously weighing the impact ofadditional burden on account of therecommendations of the 7th Central PayCommission and the implementation ofDefence OROP.

One of the biggest challenges, inflation, has been on a decliningmode. The global oil prices crash gave much needed tailwind to thegovernment while export sales had plummeted due to weak globaleconomic demands.

My key take aways from the budget would be:

1. Government plan to skill 1 crore youth in next 3 years2. Infrastructure push: Increased capital outlay of INR 218,000

crores3. 10,000 KM of National Highways in FY 2016-20174. MGNREGA allocation hiked to INR 38,500 crores, highest ever5. 1st time home buyers to get additional deduction of INR 50,000

on interest6. Government sets FY17 disinvestment target at Rs 56,500 crore7. Nuclear sector to get INR 3,000 crore yearly allocation8. Dispute clearance windows for all assesses including those

grappling with retrospective tax amendments9. 100% FDI in marketing of food products

TABLE OF CONTENTS

1. FORWARD

2. MACRO ECONOMIC INDICATORS

3. BIG BANG ANNOUNCEMENTS

4. BUDGET HIGHLIGHTS

5. SECTORS, INDUSTRIES AND FOREIGN INVESTORS

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2.MACRO ECONOMICINDICATORS

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MACRO ECONOMIC INDICATORS

The Macros 2015-2016Actuals

2016-2017Estimated

GDP growthBased on economic survey-rational one

7.6% 7-7.75%

InflationTrending down, FY17(E) 5%

5.4% 5%

Fiscal deficitAimed at 3.5% by FY 17

3.9% 3.5%

Current account deficitDrop in Oil prices

1.4% 1.3%

Industrial growthNeed a push

3% 2.9%

Foreign exchange reserves 350 Billion Dollars N.A

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3.BIG BANGANNOUNCEMENTS

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Economist’s viewprevails-Fiscaldeficit intact

Education, Skillsand Job Creation

BIG BANG ANNOUNCEMENTS

9 distinctive pillarsincludes Governance,Ease of Doing Business

and Tax reforms

3 Major schemes forweaker sections

Spending increased onpriority areas: Farm,Rural, Social, Infra

and Recapitalization ofBanks

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ECONOMIST’S VIEW PREVAILS | FISCAL DEFICIT INTACT

• Honorable Finance Minister believed that prudence lies in adheringto the fiscal targets. Consequently, the fiscal deficit in RE2015-16 and BE 2016-17 have been retained at 3.9% and3.5% of GDP respectively.

• To improve the quality of Government expenditure, every newscheme being sanctioned by Government will have a sunset dateand outcome review.

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4.BUDGET HIGHLIGHTS

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SPENDING INCREASED ON PRIORITY AREAS | FARM, RURAL,SOCIAL, INFRA AND RECAPITALIZATION OF BANKS

Farm Mission: Double the income of farmers by 2022, Total Allocation INR 35,984 crores

• ‘Pradhan Mantri Krishi Sinchai Yojana’ scheme to bring INR 28.5 lakh hectares under irrigation

• Dedicated Long Term Irrigation Fund in NABARD with an initial corpus of about INR 20,000 crore

• Sustainable management programme of ground water resources

• Soil Health Card Scheme to provide farmers information about nutrient level of the soil helping them making judicious use offertilizers.

• 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities

• Fertilizer companies to co-market city compost to increases the efficacy of chemical fertilizer

• Organic farming to be promoted under ‘Parmparagat Krishi Vikas Yojana’. Also, a value chain based organic farming scheme called“Organic Value Chain Development in North East Region” to find local and international demand for marketing the organic products

• Farmers to access the market: Unified Agriculture Marketing Scheme containing common e-market platform in selected 585 regulatedwholesale markets.

• Pradhan Mantri Gram Sadak Yojana (PMGSY) to be ramped up to improve connectivity of rural areas

• Agricultural credit in 2016-17 will be an all-time high of INR 9 lakh crores.

• Crop Insurance: Path breaking Crop Insurance Scheme approved, namely, Prime Minister Fasal Bima Yojana.

• 3 initiatives: Decentralized procurement, online procurement system with Food Corporation of India and effective Pulses procurement

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Rural sector objectives: Allocation of INR 38,500 crores for Mahatma Gandhi National RuralEmployment Gurantee Act (MGNREGS), overall allocation INR 87,765 Crores

• Grant in Aid to Gram Panchayats and Municipalities, quantum jump of 228% compared to the previous five yearperiod. To transform villages and small towns. Ministry of Panchayati Raj to work with States and evolve guidelines

• 300 Rurban Clusters to incubate growth centres in rural areas by providing infrastructure amenities and market access forthe farmers and to expand employment opportunities for the youth.

• 5542 villages have been electrified. Government to achieve 100% village electrification by 1 May, 2018.

• To promote Swachh Bharat Abhiyan, priority allocation from Centrally Sponsored Schemes will be made to rewardvillages that have become free from open defecation

• Digital Literacy Mission Scheme for rural India to cover around 6 crore additional households within the next 3 years.

• Aiming dispute free titles of land, The National Land Record Modernisation Programme revamped under the DigitalIndia Initiative and will be implemented as a Central sector scheme with effect from 1st April, 2016.

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Social Sector including health care: Massive mission to provide LPG connection in the name ofwomen members of poor households. Scheme to cover a total of 5 crore BPL households in coming 3 years.

• For poor and economically weak families, New health protection scheme to provide health cover up to Rs. One lakh per family andan additional top-up package up to INR 30,000 for senior citizens

• 3,000 Stores Jan Aushadhi Yojana to open during 2016-17 in order to supply generic drugs at affordable prices

• ‘National Dialysis Services Programme’ to provide dialysis services in all district hospitals. Exemption to certain parts of dialysisequipment from basic customs duty, excise/CVD and SAD.

“Stand Up India Scheme” to promote entrepreneurship among SC/ST and women. Scheme to facilitate at least two such projects perbank branch, one for each category of entrepreneur.

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Education, Skills and Job Creation• To focus on quality of education, 62 new Navodaya Vidyalayas will be opened in the remaining uncovered districts over the next two

years:

• To empower Higher Educational Institutions to help them become world class teaching and research institutions, an enablingregulatory architecture will be provided to ten public and ten private institutions

• Higher Education Financing Agency (HEFA) with an initial capital base of INR 1,000 crores.

• To help validate authenticity, safe storage and easy retrieval of School Leaving Certificates, College Degrees, Academic Awards and Marksheets, on the pattern of a Securities Depository, a Digital Depository to be established.

• To set up 1500 Multi Skill Training Institutes across the country

• Entrepreneurship Education and Training will be provided in 2200 colleges, 300 schools, 500 Government ITIs and 50 VocationalTraining Centres through Massive Open Online Courses. Aspiring entrepreneurs, particularly those from remote parts of the country, willbe connected to mentors and credit markets.

• To incentivize creation of new jobs in the formal sector, Government to pay the Employee Pension Scheme contribution of 8.33% forall new employees enrolling in EPFO for the first three years of their employment.

• 80JJAA to provide deduction of 30% of the emoluments paid to new employees (having monthly salary upto INR 25,000 and for whomthe government is not paying the entire pension scheme contribution) for three years.

• Voluntarily adoptable Model Shops and Establishments Bill to give option to small shops to remain open on all seven days of theweek. This will generate further employment.

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Infrastructure and Investment: Total outlay INR 221,246 Crores

• Allocation of INR 55,000 crores for Roads and Highways, further topped up by additional INR 15,000 crores to be raised by NHAIthrough bonds. Total investment in the road sector, including Pradhan Mantri Gram Sadak Yojana (PMGSY) allocation, would be INR97,000 crores during 2016-17.

• Together with the capital expenditure of the Railways, the total outlay on roads and railways will be INR 2,18,000 crores in2016-17.

• To approve nearly 10,000 kms of National Highways in 2016-17. Nearly 50,000 kms of State highways to be up-graded asNational Highways.

• Abolition of permit-raj: To enact necessary amendments in the Motor Vehicles Act in order to open up the road transport sector inthe passenger segment. Entrepreneurs will be able to operate buses on various routes, subject to certain efficiency and safety norms.

• Civil aviation: 160 airports and air strips to be revived with State Governments to develop regional connectivity.

• Proposal under consideration to incentivize gas production from deep-water, ultra deep-water and high pressure-high temperatureareas, which are presently not exploited on account of higher cost and higher risks

• Comprehensive plan being drawn up, spanning next 15 to 20 years, to augment the investment in nuclear power generation.Budgetary allocation up to INR 3,000 crore per annum, together with public sector investments.

• Mobilisation of additional infrastructure finances may be permitted to the extent of INR 31,300 crore by NHAI, PFC, REC, IREDA,NABARD and Inland Water Authority through raising of Bonds during 2016-17

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Infrastructure and Investment…..:• 3 new initiatives to reinvigorate private sector:

(i) A Public Utility (Resolution of Disputes) Bill to be introduced during 2016-17 to streamline institutional arrangements forresolution of disputes in infrastructure related construction contracts, PPP and public utility contracts;

(ii) Guidelines for renegotiation of PPP Concession Agreements to be issued, keeping in view the long term nature of suchcontracts and potential uncertainties of the real economy, without compromising transparency;

(iii) A new credit rating system for infrastructure projects which gives emphasis to various in-built credit enhancement structuresto be developed, instead of relying upon a standard perception of risk which often result in mispriced loans.

• New policy for management of Government investment in Public Sector Enterprises, including disinvestment and strategic sale,has been approved. NITI Aayog to identify opportunities for strategic sale.

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SPENDING INCREASED ON PRIORITY AREAS | FARM, RURAL,SOCIAL, INFRA AND RECAPITALIZATION OF BANKSFinancial Sector Reforms• Code on Resolution of Financial Firms will be introduced as a Bill to serve as a resolution mechanism to deal with bankruptcy

situations in banks, insurance and financial sector entities. Together with the Insolvency and Bankruptcy Code 2015, when enacted,will provide a comprehensive resolution mechanism for our economy.

• Amendment in RBI Act 1934 to provide statutory basis for a Monetary Policy Framework and a Monetary Policy Committeethrough the Finance Bill 2016.

• Financial Data Management Centre to facilitate integrated data aggregation and analysis in the financial sector

• To improve retail participation in Government securities, RBI will facilitate their participation in the primary and secondarymarkets through stock exchanges and access to NDS-OM trading platform.

• New derivative products to be developed by SEBI in the Commodity Derivatives market.

• Measures to facilitate deepening of corporate bond market to be introduced

• To tackle the problem of stressed assets in the banking sector, proposed amendments in the SARFAESI Act 2002 to enable thesponsor of an ARC to hold up to 100% stake in the ARC and permit non-institutional investors to invest in Securitization Receipts.

• Seed capital of INR 25,000 crores introduced to support the Banks and to support credit growth

• Bank Board Bureau will be operationalized during 2016-17 and a roadmap for consolidation of Public Sector Banks will bespelt out and Debt Recovery Tribunals will be strengthened

• General Insurance Companies owned by government to be listed in stock exchanges

• Pradhan Mantri Mudra Yojana (PMMY) target increased to INR 180,000 crores. To benefit entrepreneurs.

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GOVERNANCE AND EASE OF DOING BUSINESS

• 3 specific initiatives(i) Introduction of a bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework. A

social security platform will be developed using Aadhar to accurately target beneficiaries.

(ii) Proposal to introduce Direct Benefit Transfer on pilot basis for fertilizer in a few districts across the country, with a view toimproving the quality of service delivery to farmers.

(iii)Automation facilities to be provided in 3 lakh Fair Price Shops by March 2017.

• Introduction of a bill to amend the Companies Act, 2013 which will also improve the enabling environment for start-ups. Theregistration of companies will also be done in one day.

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TAX REFORMS

Direct Taxes

• Individuals with income not exceeding INR 5 lakhs, proposal to raise the ceiling of tax rebate under section 87A from INR2,000 to INR 5,000. 2 crore tax payers to get a relief of INR 3,000 in their tax liability.

• Proposal to increase the limit of deduction in respect of rent paid under section 80GG from INR 24,000 per annumto INR 60,000 per annum (for those who do not have any house)

• Turnover limit to avail Presumptive taxation scheme increased to INR 2 crores from INR 1 Crore. For professionals, thelimit of professional receipts has been increased up to INR 50 lakh with the presumption of profit being 50% of the grossreceipts.

• Reduction in corporate income tax rate to be calibrated with the gradual phasing out of exemptions and deductionsavailable under various sections:

Changes in Corporate income tax rate:

(a) The new manufacturing companies incorporated on or after 1.3.2016 are proposed to be given an option to betaxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do notavail of investment allowance and accelerated depreciation.

(b) Proposal to lower the corporate income tax rate for the next financial year of relatively small enterprises i.e companieswith turnover not exceeding INR 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess.

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TAX REFORMSDirect Taxes

• Exemptions being phased out:

(a) The accelerated depreciation provided under IT Act will be limited to maximum 40% from 1.4.2017.

(b) The benefit of deductions for Research would be limited to 150% from 1.4.2017 and 100% from 1.4.2020.

(c) The benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020.

(d) The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020.

• For Startups set up during April 2016 to March 2019, 100% deduction of profits for 3 out of 5 years for startups. MAT willapply in such cases. Capital gains will not be taxed if invested in regulated/notified Fund of Funds and by individuals in notifiedstartups, in which they hold majority shares.

• 10% rate of tax on income from worldwide exploitation of patents developed and registered in India

• ARC’s trusts and securitization trusts to get Income Tax pass through: income will be taxed in the hands of the investorsinstead of the trust. However, the trust will be liable to deduct tax at source

• The period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced fromthree to two years.

• Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision forbad and doubtful debts.

• Government committed for General Anti Avoidance Rules (GAAR) to be implemented from 1.4.2017

• Finance Bill, 2016 to include provision for requirement of country by country reporting for companies with a consolidated revenue ofmore than Euro 750 million, in order to support BEPS initiative of OECD and G-20

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TAX REFORMSDirect Taxes….

• Finance Bill, 2016 to include provision for requirement of country by country reporting for companies with a consolidated revenue ofmore than Euro 750 million, in order to support BEPS initiative of OECD and G-20

• Proposal to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme

• For superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will applyin respect of corpus created out of contributions made after 1.4.2016

• Proposal for a monetary limit for contribution of employer in recognized Provident and Superannuation Fund of INR 1.5 lakh perannum for taking tax benefit.

• 100% deduction for profits to an undertaking from a housing project for flats upto 30 sq. metres in four metro cities and 60 sq.metres in other cities, approved during June 2016 to March 2019, and is completed within three years of the approval. Minimum AlternateTax will, however, apply to these undertakings

• Deduction for additional interest of INR 50,000 per annum for loans up to INR 35 lakh sanctioned during the next financial year,provided the value of the house does not exceed INR 50 lakh

• Proposal to exempt Dividend Distribution Tax for distribution made out of income of SPV to the Real Estate Investment Trustshaving specified shareholding

• Tax at the rate of 10% of gross amount of dividend will be payable by the recipients, that is, individuals, HUFs and firms receivingdividend in excess of INR 10 lakh per annum

• Increase in surcharge from 12% to 15% on persons, other than companies, firms and cooperative societies having income above INR 1crore

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• Tax collection at source at the rate of 1% on purchase of luxury cars exceeding value of INR 10 lakhs and purchase of goodsand services in cash exceeding INR 2 lakhs

• Rate of Securities Transaction tax in case of ‘Options’ is proposed to be increased from .017% to .05%

• Tapping on foreign e-commerce companies: a person making payment to a non-resident, who does not have a permanentestablishment, exceeding in aggregate INR 1 lakh in a year, as consideration for online advertisement, will withhold tax at 6% ofgross amount paid, as Equalization levy. The levy will only apply to B2B transactions.

• Compliance Window for domestic taxpayers to declare undisclosed income or income represented in the form of any assetand clear up their past tax transgressions by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is atotal of 45% of the undisclosed income. No scrutiny or enquiry regarding income declared in these declarations under theIncome Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution. Immunity from Benami Transaction(Prohibition) Act, 1988 is also proposed subject to certain conditions. The surcharge levied at 7.5% of undisclosed income will becalled Krishi Kalyan surcharge to be used for agriculture and rural economy. Window will be opened from 1st June to 30thSeptember, 2016 with an option to pay amount due within two months of declaration.

• New Dispute resolution scheme: Appeals pending at Commissioner (Appeals) can be settled by paying the disputed tax andinterest up to the date of assessment. No penalty in respect of Income-tax cases with disputed tax up to INR 10 lakh willbe levied. Cases with disputed tax exceeding INR 10 lakh will be subjected to only 25% of the minimum of the imposable penaltyfor both direct and indirect taxes. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum ofthe imposable penalty.

• For cases pending due to Retrospective amendments, a one-time scheme of Dispute Resolution announced, in which, casescan be settle by paying only the tax arrears in which case liability of the interest and penalty shall be waived

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• Curb on discretionary power of the tax officers in imposing penalties: rates will now be 50% of tax in case ofunderreporting of income and 200% of tax where there is misreporting of facts. Remission of penalty is also proposed incertain circumstances where taxes are paid and appeal is not filed.

• Quantification of disallowance of expenditure relatable to exempt income in terms of Section 14A: 1% of the averagemonthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed

• Proposal to provide a time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty

• Rationalisation of TDS provisions for small tax payers

• Alternative documents may be provided in case PAN number is not available with non-residents

• Proposal to expand the scope of e-assessments to all assessees in 7 mega cities. Cases will be scrutinized in e-environmentwhereby unless the assessee himself wants to be heard, or for special reasons to be recorded, the assessing officer wants to hearthe party, there will be no face to face contact of IT Department with assessee

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TAX REFORMSIndirect Taxes

• Service tax exemptions

(a)Services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodiesempanelled by Ministry of Skill Development & Entrepreneurship.

(b) General insurance services provided under ‘Niramaya’ Health Insurance Scheme launched by National Trust for theWelfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability

(c)Annuity services provided by the National Pension System (NPS) and Services provided by EPFO to employees

(d)Reduction in service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid incertain cases

(e)Construction of affordable houses up to 60 square metres under any scheme of the Central or State Government includingPPP Schemes

• For refrigerated containers, reduction in the basic custom and excise duty on them to 5% and 6% respectively.

• Changes in customs and excise duty rates on certain inputs, raw materials, intermediaries and components andcertain other goods and simplify procedures, so as to reduce costs and improve competitiveness of domestic industry insectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils,chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts andship repair etc

• Excise duty exemption to Ready Mix Concrete.

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• Krishi Kalyan Cess, @ 0.5% on all taxable services, to come into force from 1st June 2016. Input Tax credit of this cesswill be available for payment of this cess.

• Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on otherhigher engine capacity vehicles and SUVs

• Excise duty of 1% without input tax credit or 12.5% with input tax credit on articles of jewellery [excluding silverjewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits ofINR 6 crores and INR 12 crores respectively.

• Change in the excise duty on branded readymade garments and made up articles of textiles with a retail sale price ofINR 1,000 and above from ‘Nil without input tax credit or 6%/12.5% with input tax credit’ to ‘2% without input tax credit or12.5% with input tax credit’

• Excise duty on tobacco products increased by about 10-15%

• Renaming of ‘Clean Energy Cess’ levied on coal, lignite and peat as ‘Clean Environment Cess’ and increase in rate from INR200 per tonne to INR 400 per tonne

• Proposed Amendment in Finance Act, 1994 to declare assignment by the Government of the right to use the radio-frequencyspectrum and its subsequent transfers a service, to make it clear that assignment of right to use the spectrum is aservice leviable to service tax and not sale of intangible goods.

• Creation of 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT)

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• Proposal to amend the CENVAT Credit Rules, 2004, so as to improve credit flow, reduce the compliance burden andassociated litigation, particularly those relating to apportionment of credit between exempted and non exempted finalproducts/services. Also enable multiple manufacturing units to maintain a common warehouse for inputs and distributeinputs with credits to the individual manufacturing units.

• Facility for revision of return being extended to Central Excise assessees also

• Additional options to banking companies and financial institutions, including non-banking financial companies, forreversal of input tax credits with respect to non-taxable services provided by them by way of extending deposits, loansand advances

• Allowance of deferred payment of customs duties for importers and exporters with proven track record.

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5.SECTORS, INDUSTRIESAND FOREIGN INVESTORS

SECTORS, INDUSTRIES AND FOREIGN INVESTORS

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Infrastructure FinancialInstitutions

ForeignInvestors

Defense andAerospace

§ Total outlay onroads and railwaysINR 2,18,000 crores

§ Nearly 10,000 kmsof NationalHighways in 2016-17. Nearly 50,000kms of Statehighways to be up-graded as NationalHighways.

§ Resolution ofDisputes Bill

§ Seed capital of INR 25,000crores to support the Banks

§ Amendment in RBI Act 1934to provide statutory basis fora Monetary Policy Frameworkand a Monetary PolicyCommittee through theFinance Bill 2016.

§ General Insurance Companiesowned by government to belisted in stock exchanges

§ Roadmap for consolidation ofPublic sector banks

Manufacturing

§ Exemption from BasicCustoms duty, CVD andSAD and excise dutywhen tools and tool kitsimported by MROs foraircraft

§ Custom dutiesexemption withdrawn forimports by GOI and PSU

§ Custom dutiesexemption withdrawn forimports by contractors ofGOI or PSU

§ 49% FDI in Insurance and pensionsectors

§ 100% FDI in ARC’s§ Investment limit for foreign entities

in Indian stock exchangesenhanced from 5 to 15%.

§ Investment by FPIs in CentralPublic Sector Enterprises-upto 49%

§ 100% FDI in marketing of foodproducts

§ FDI in hybrid instruments§ Residency status to foreign

investors§ Centre State Investment

Agreement

§ CVD exemption onroad constructionequipmentswithdrawn

§ Basic Custom dutyon Golf carsincreased to 60%

§ Excise duty reducedon Routers,modems, set topboxes