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By:

Amey Chitale

28 October 2024 at 5:29:02 am

Growth Without Fireworks

The Budget leans on tourism, technology, trade calibration and fiscal discipline to anchor growth amid global uncertainty Mumbai: The new budget positions tourism as a key driver of jobs, forex earnings, and local growth. Incentives will back indigenous seaplane manufacturing through a Seaplane VGF Scheme, while a new National Institute of Hospitality will strengthen academia-industry-government linkages. A pilot programme will upskill 10,000 guides at 20 iconic sites with IIM collaboration,...

Growth Without Fireworks

The Budget leans on tourism, technology, trade calibration and fiscal discipline to anchor growth amid global uncertainty Mumbai: The new budget positions tourism as a key driver of jobs, forex earnings, and local growth. Incentives will back indigenous seaplane manufacturing through a Seaplane VGF Scheme, while a new National Institute of Hospitality will strengthen academia-industry-government linkages. A pilot programme will upskill 10,000 guides at 20 iconic sites with IIM collaboration, and a National Destination Digital Knowledge Grid will document cultural and heritage sites. Heritage tourism will be enhanced with experiential upgrades at 15 archaeological sites, and new projects will expand the Buddhist circuit in the northeast. Seven High-Speed Rail corridors will serve as sustainable ‘growth connectors,’ boosting mobility and linking emerging hubs. Software services, IT-enabled services, KPO, and contract R&D are consolidated under ‘Information Technology Services’ with a uniform safe harbour margin of 15.5 percent. The safe harbour threshold rises from Rs. 300 crore to Rs. 2,000 crore, easing compliance for mid-sized firms. To spur investment in critical infrastructure, a tax holiday until 2047 is offered to foreign companies delivering global cloud services via Indian data centres, provided domestic customers are served through Indian resellers. This landmark measure positions modern data centres as central pillars of India’s digital economy and future growth. Key Reforms Income tax rates remain steady but introduces key compliance reforms. TCS on foreign travel and education is reduced to 2 percent, and TDS rules for manpower services have been simplified. Taxpayers can now file Form 15G/15H directly through depositories, easing coordination. Penalty provisions are de-criminalised, with many shifted to late fees. While broader capital gains rationalisation was anticipated, relief comes through treating buyback proceeds as capital gains, lowering the tax burden for recipients. Trade-friendly customs duty reforms find place instead changes rather than sweeping reforms. The duty-free import limit for seafood export inputs rises from 1 percent to 3 percent of turnover, with similar relief extended to shoe uppers. Exporters of leather, textiles, and footwear gain flexibility as the export period is extended to one year. To encourage domestic value addition in consumer electronics, specified parts for microwave oven manufacturing are now exempted. The recommendations of 16th Finance Commission have been accepted by the centre which recommended 41 percent devolution. Budget 2026 reaffirms the government’s commitment to fiscal consolidation while safeguarding social priorities. The debt-to-GDP ratio is projected to decline from 56.1 percent in 2025–26 to 55.6 percent in 2026–27, freeing resources for priority spending by lowering interest outgo. The fiscal deficit target has been met at 4.4 percent of GDP in 2025–26 and is estimated to further ease to 4.3 percent in 2026–27, in line with the path toward a 50±1 percent debt-to-GDP ratio by 2030–31. Revised estimates for 2025–26 place non-debt receipts at Rs. 34 trillion and expenditure at Rs. 49.6 trillion, including Rs. 11 trillion in capital outlay. For 2026–27, receipts are projected at Rs. 36.5 trillion and expenditure at Rs. 53.5 trillion, with net tax receipts of Rs. 28.7 trillion. The government is banking on higher RBI dividends and higher disinvestment receipts. Fiscal deficit financing will hinge on Rs. 11.7 trillion in net market borrowings, supplemented by small savings and other sources, with gross borrowings at Rs. 17 trillion. Successful execution will decide if the budget’s ambitions become reality. This year’s strategy favours actions over numbers, consolidating and reinforcing the ecosystem instead of chasing headline reforms. Amid geopolitical tensions and market volatility, it prioritises stability and durable growth over quick wins - less a Sehwag-style first-ball six, more a Rahul Dravid innings: deliberate, resilient, and built for the long haul.

The Arm Strong of Nashik

The Arm Strong of Nashik

The story of Chhagan Bhujbal is a stellar example of how hard work can get one to the top but a few wrong moves can make the entire career trajectory go on a downward spiral. Bhujbal, now 77, began his work life as a vegetable vendor in Mumbai and was among the early ones to join the Shiv Sena after Bal Thackeray founded the party in 1966. Known for his captivating oratory and a fiery attitude, Bhujbal closely rose up the ranks in the party, became a corporator and was twice elected as the mayor of Mumbai. A tiff with Manohar Joshi and other Sena leaders saw Bhujbal defect to the Congress in 1991 under Sharad Pawar’s leadership. By now, he had won a widespread following as an OBC leader. He followed his mentor Pawar to the NCP when the party was founded in 1999.


Bhujbal earned a reputation for being a daredevil politician—he gave fiery speeches, in the eighties when the Maharashtra-Belgaum border issue was on the boil, he entered Belgaum in disguise and hoodwinked the police for a while until he was arrested; as the home minister of Maharashtra, he is believed to have cracked down on the underworld and in 2000, he did what no one had done before—he put his original mentor, Thackeray, behind bars in a case related to the Sena party paper Saamna. Bhujbal founded the Maharashtra Education Trust that runs schools and colleges in Mumbai and Nashik.


His son and nephew entered politics as his successors. Son Pankaj is a two-term legislator from Nandgaon and nephew Sameer is a former Member of Parliament from Nashik and while they enjoy various positions in the NCP, neither has risen to the star status that Bhujbal enjoyed.


Bhujbal’s career was marred by numerous controversies and a jail term. He was alleged to have played a part in the stamp paper scam in which Abdul Karim Telgi was the mastermind; he faced charges in Rs 800 crore scam and even spent two years in jail until he was acquitted. In 2023, he supported Ajit Pawar when the NCP split. His fortunes have, however, dwindled. In 2024, despite news that he was keen on contesting the Parliamentary polls from Nashik, he was denied the opportunity.


Always flamboyant in his dressing sense and oratory, Bhujbal faced the ire of the Maratha community when he opposed the challenged the Maratha reservations during the ongoing agitation by Manoj Jarange-Patil. His son Pankaj’s nomination to the legislative council recently is seen as an attempt to pacify a sulking father who was overlooked for the Rajya Sabha elections in June.

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