The Union Budget for 2013-14 has lot of expectations from the Finance Minister more so since the last 4 - 5 months have seen some bold measures in the oil& gas space, FDI, ECB borrowings relaxation for corporates,etc. Some measures which will be keenly expected are as follows:-
1. Relief for the auto sector - Some concessions in excise could be expected keeping the slagging auto demand in the past few months.
2. Metals Export duty on iron ore which was imposed at 30 per cent could be relaxed to make exports competitive
3. Oil & gas - The customs duty on crude imports which was reduced to 0 per cent may attract some levy since some decontrol on diesel and petrol have been announced.
4. Re-introduction of investment allowance on capital equipment which could boost fresh investments. This could provide incentives for the capital good sector in particular.
5. Concessions for the housing sector in the form of more tax deduction to individuals which will act as a catalyst for housing demand .
6. Sops for capital markets - Some re-orientation of the RGESS which will make the scheme more attractive for capital market players. Some sops for the mutual fund industry could also be expected to promote investment in equity markets in the domestic front.
(The article has been written by K Subramanayam of Asit C Mehta)
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