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  • Indian Budget 2019
Report:

Indian Budget 2019

08 July 2019

With a new electoral mandate, the Modi government 2.0 presented its first budget in India on 5 July. The budget primarily focussed on infrastructure spending and boosting investments by private and foreign investors. The government forecasts that the Indian economy would grow to $5 trillion by 2025 which is almost twice its current size. With the budget announcements, a slew of reforms and policies are expected in the coming months for implementing these reforms, including the draft of the much-awaited Direct Tax Code which aims to overhaul the present direct tax law.

We are highlighting some of the key amendments, relevant from foreign investor’s perspective.

  1. Tax rates
  2. Real estate
  3. Start ups
  4. Electric vehicles manufacturing
  5. Transfer pricing adjustment
  6. Foreign investment
  7. Incentives for units in International Financial Services Centre (‘IFSC’)
  8. Increase of public shareholding in listed companies
  9. Receipt of assets below fair value
  10. Social stock exchange

The proposed changes to the policies and tax law indicates a direction which the government wishes to take with a hope of rejuvenated reforms. Once the proposed changes are implemented in the manner contemplated, the growth projected by the economic survey of 7% should be possible.

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