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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.

US Vice President JD Vance, his family arrive in Delhi

  • PTI
  • Apr 21, 2025
  • 2 min read


NEW DELHI: US Vice President J D Vance arrived here on Monday on a four-day visit to India against the backdrop of ongoing negotiations for a bilateral trade agreement between the two strategic partners to address a variety of issues, including tariff and market access.


Vance is accompanied by his Indian-origin wife Usha Chilukuri and their three children Ewan, Vivek, Mirabel and a delegation of senior US government officials.


The US Vice President and the Second Lady were received at the Palam air base by Union Minister Ashwini Vaishnaw.


The American leader was also accorded a ceremonial welcome on his arrival.

In the evening, Prime Minister Narendra Modi will host a dinner for the Vances after holding wide-ranging talks with the US Vice President.


External Affairs Minister S Jaishankar, NSA Ajit Doval, Foreign Secretary Vikram Misri and Indian ambassador to US Vinay Mohan Kwatra are expected to be part of the Indian team to be led by PM Modi at the talks.


The focus of the meeting is likely to be on early finalisation of the proposed bilateral trade pact as well as ways to boost overall trajectory of ties between the two countries.


Besides Delhi, Vance and his family will travel to Jaipur and Agra.

Vance's first visit to India comes weeks after US President Donald Trump imposed and then paused a sweeping tariff regime against around 60 countries, including India.


New Delhi and Washington are now holding negotiations to seal a bilateral trade agreement that is expected to address a variety of issues, including tariff and market access.


Vance and his family are scheduled to leave for Jaipur on Monday night.

In Delhi, the US Vice President and his family are staying at the ITC Maurya Sheraton hotel.


On April 22, the Vances will visit a number of historical sites in Jaipur, including the Amer Fort, also known as Amber Fort. The fort is a UNESCO world heritage site.


In the afternoon, the US Vice President is scheduled to address a gathering at the Rajasthan International Centre in Jaipur.


Vance is expected to delved into broader aspects of India-US relations under the Donald Trump administration during his speech that is expected to be attended by diplomats, foreign policy experts, Indian government officials and academia.


The US Vice President and his family will travel to Agra on the morning of April 23, people familiar with the matter said.


In Agra, they will visit the Taj Mahal and Shilpgram which is an open air emporium showcasing various Indian artefacts, they said.


After concluding their visit to Agra, the Vances will return to Jaipur on the second half of April 23.


The US Vice President and his family will depart for the US from Jaipur on April 24, according to the people cited above.

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