Amendments
to the Union Budget for 2001-2002
Certain amendments
to the Union Budget 2001-02 carried out by the Finance Minister, Shri Yashwant
Sinha before the budget was passed on 25.04.2001 are as under:-
-
Percentage of
export profits to be taxed cut from 40% to 30%.
-
Standard deduction
on income upto Rs.3 lakh hiked by Rs.5,000/-.
-
Customs Duty on
new cars and two-wheelers up from 35% to 60%.
-
16% cenvat on
branded garments extended to all readymade garments.
-
Stock exchanges
exempted from capital gains tax on transfer of assets.
-
Limit of deduction
on interest income hiked to Rs.12,000 from Rs.9,000.
-
TDS on interest
payments raised from Rs.2,500 to Rs.5,000.
-
5% customs duty
on ships abolished.
-
Customs duty on
specified telecom parts slashed to 5%.
-
Charitable trusts
with income up to Rs.1 crore need not publish accounts.
Exports maintain
20 pc growth
Exports showed
a 20.03 percent surge in dollar terms in the first 11 months of the 2000-01
fiscal by crossing $ 39.54 billion mark during the period, as per the latest
monthly trade data released on April 01, 2001.
There was
a marked improvement in the trade deficit which was recorded at $ 5.83
billion during the period under review as against $ 9.60 billion during
the same period of the previous fiscal.
Oil imports
during the first 11 months of 2000-01 stood at $ 15 billion which is 66.17
percent higher than the imports in the corresponding period in 1999-2000.
Exports
double in past decade
The country's
exports have more than doubled during the past decade from $ 17.9 billion
in 1991-92 to $ 37.5 billion in 1999-2000 according to the commerce ministry's
annual report released on 29.03.2001.
The exports
during the first 10 months of the current fiscal are valued at 35.6 billion,
which is 20.70 percent higher than those valued at $ 29.5 billion in the
same period last year.
The trade
policy reforms initiated in the past few years have aimed at creating an
environment for achieving a rapid increase in exports and making them an
engine for achieving higher economic growth, the report said.
The reform
process has been carried further, while simultaneously ensuring that the
transition towards globalisation is made without causing undue hardship
to the domestic players.
During April-November
2000, the principal commodities whose exports increased significantly over
the previous corresponding period included pulses, seasame and niger seeds,
oil meals, sugar and molasses, processed food. The other items were marine
products, iron ore, processed minerals, other ores and minerals, leather
and manufactures, gems and jewellery, chemicals and related products, engineering
goods, electronic hardware items etc.
The exports
of commodities which declined in the above period, included, tea, tobacco,
castor oil, sports goods etc. The US continues to be India's largest trading
partner accounting for nearly 22.3 percent of this country's exports and
5.6 percent of its imports. As a trading bloc, the European Union is India's
largest partner and accounts for about a quarter of its exports and a third
of its imports.
Trade with
Latin American region has witnessed a high growth of 47 percent during
the current year.
Steel output
up 7.8% in 11 months
Finished steel
production has witnessed a growth of 7.8 percent (estimated) at 26.4 million
tonne during April-February period of the current financial year as against
24.48 million tonne in the corresponding period last year.
Steel output
in pvt. sector up 44%
Showing a
regular growth for the last five years, steel production in the private
sector rose by 44.29 percent to 18.18 million tonnes in 1999-2000 from
12.6 million tonnes in 1995-96. Steel output in 1996-97, 1997-98 and 1998-99
stood at 14.2, 14.83 and 16.18 million tonnes respectively.
Production
in the public sector has been more or less constant over the last five
years and contributed 8.53 million tonnes of the National production of
26.71 million tonnes in 1999-2000. The production in the public sector
in the previous four years was 7.54, 8.54, 8.5 and 8.8 million tonnes respectively.
ADB approves
$ 500 million aid for Gujarat
Asian Development
Bank has approved a $ 500 million aid for quake-affected Gujarat. This
is the largest-ever loan for a single project in the country.
It is meant
to reconstruct and restore the damaged essential infrastructure in the
quake-affected districts. ADB has also set up an extended office in Gandhi
Nagar to ensure prompt implementation of the rehabilitation project.
16% duty
threatens survival of Gujarat ball bearings sector
Withdrawal
of exemption applicable to small and tiny industries engaged in the manufacture
of ball/roller bearings and imposition of a 16 percent central excise duty
in the 2001-02 Budget will spell doom for over 1,800 units in Gujarat,
says Federation of Saurashtra Kutch Industries and Trade.
The ball/roller
bearings industry was reeling under heavy competition from China, Japan
and other countries since 1988.
The burden
of 16 percent central excise duty cannot be absorbed by the sector as it
would lead to a hefty increase in the production cost and is enough to
upset the units' viability.
Persisting
budget deficits will mar robust growth in India : WB
The World
Bank global development finance report has said that the persistence of
large budget deficits will restrain the robust growth of India.
The report
released today pointed out that the budget deficit inclusive of capital
expenditure currently stood at some 10 percent of gross domestic product.
The rapidly rising states' deficits had touched 4.5 percent of GDP with
the consolidated public deficit pegged at around 11.2 percent in 1999-2000.
The already
high debt servicing prevents regional governments from expanding key public
services and investment in infrastructure and it also tends to raise interest
rates, thereby, reducing private investment opportunities. The New Millennium
Deposit scheme for non-resident Indians, which mopped upto $ 5.5 billion,
helped finance the rising current account deficit in India due to the high
oil import bill which had touched $ 8 billion.
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