24 July 2024, The Hindu
Angel tax on foreign investments in start-ups nixed
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GS 3: Indian Economy - Investment models (PPP etc)
- In a major respite to India’s fledgling start-ups, Finance Minister Nirmala Sitharaman announced scrapping of the contentious angel tax on foreign investments received by such enterprises, a development that is expected to ease their funding woes.
- Ms. Sitharaman introduced the measure stating that it would help “bolster the Indian start-up ecosystem, boost the entrepreneurial spirit and support innovation”.
A pathway to inclusive growth
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GS 3: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment
- The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, represents a significant milestone in India’s ongoing journey towards inclusive growth and economic resilience.
- With a strategic emphasis on job creation, infrastructure development, support for MSMEs, and affordable housing, this Budget addresses the nation’s critical needs while prudently reducing the fiscal deficit to 4.9%.
- A cornerstone of this Budget is the ambitious scheme to boost job creation in the manufacturing sector, specifically targeting first-time workers.
Unlisted bonds, debentures, debt MFs to attract capital gains tax
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GS 3: Indian Economy - Government Budgeting
- With a view to deepening tax base in the country, Finance Minister Nirmala Sitharaman proposed to increase Securities Transaction Tax (STT) on Futures and Options contracts to 0.2% and 0.1%, respectively. The measure is viewed as one to curb speculation in the stock market.
- In another measure, income received on buyback of shares by companies from shareholders would now be taxed in the hands of the recipient.
- This is also viewed as a negative for retail investors.
- As per the Budget proposal, unlisted bonds and debentures, debt mutual funds and market-linked debentures will now attract tax on capital gains irrespective of the holding period.
Placing thrust on infrastructure
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GS 3: Indian Economy - Infrastructure – Energy, Ports, Roads, Airports, Railways etc.
- Finance Minister Nirmala Sitharaman accelerated the government’s thrust on the crucial infrastructure sector in her seventh successive Budget presentation and the first of PM Modi’s third term.
- A massive expansion in urban housing at an investment of ₹10 lakh crore, a rural roads programme worth ₹26,000 crore are among the major features of the big infrastructure push.
- The capex budget for FY25 has been retained at ₹11.1 lakh crore, or 3.4% of GDP.
Five new schemes to aid job creation
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GS 3: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment
- Amid the increasing unemployment rate, and job and wage losses, the first Budget of the third Narendra Modi government has proposed taking a prioritised approach in the fields of employment and skilling.
- The Union Budget has proposed five schemes with an outlay of ₹2 lakh crore to generate jobs for the youth.
- Union Finance Minister Nirmala Sitharaman said the Centre will implement three schemes for ‘Employment Linked Incentive’ as part of the Prime Minister’s package.
- “These will be based on enrolment in the Employees’ Provident Fund Organisation (EPFO), and focus on recognition of first-time employees, and support to employees and employers,” she said.
Govt. keeps focus on critical areas
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GS 3: Indian Economy - Government Budgeting
- The world is witnessing unprecedented disruptions and uncertainty. India, however, presents the promise of growth, stability, and opportunities for investment.
- To avail of these opportunities, multiple steps were necessary: strong capital expenditure and infrastructure push by the Indian government; significant support to small and medium enterprises; job creation and skill development; and enhancing the purchasing power of both urban and rural Indian consumers.
Emission standards may be imposed on polluting industries
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GS 3: Environmental pollution and degradation
- Finance Minister Nirmala Sitharaman’s Budget speech has for the first time signalled that polluting industries, such as iron, steel, and aluminium will have to conform to emission targets.
- “A roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for transition of these industries from the current ‘Perform, Achieve, and Trade’ mode to ‘Indian Carbon Market’ mode will be put in place,” Ms. Sitharaman said in her address.
A big boost for the home finance sector
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GS 3: Indian Economy - Government Budgeting
- The Indian real estate sector has been experiencing a significant boom in recent quarters, driven by factors such as rapid urbanisation, policy reforms, increase in disposable income and a continuous growth in consumer sentiments.
- Last year, the sector registered remarkable progress, consolidating its position among various other sectors.
Union Budget 2024-25 — no signs of learning
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GS 3: Indian Economy - Government Budgeting.
- Just before Nirmala Sitharaman presented her seventh consecutive Budget as Union Finance Minister of a coalition led by the Bharatiya Janata Party (BJP), which managed to gain power for the third time on an underwhelming mandate, signals from the government seemed to suggest what its thrust may be.
- The Economic Survey 2023-24 made clear that while India’s industrialists and business elite were “swimming in excess profits”, the priority of the government was not to tax away that excess for developmental purposes, but to ease the burden of regulation on business and goad the private sector into generating productive jobs out of “enlightened self-interest”.
- Business must lead the march to Viksit Bharat 2047, and the job of the government is to persuade the private sector not to shy away from leadership.
Nepal, Sri Lanka, Seychelles secure more funds under Budget allocation for MEA
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GS 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting the Indian interests
- India-funded projects in the neighbourhood received the bulk of the allocation for the Ministry of External Affairs (MEA) under the Union Budget presented by Finance Minister Nirmala Sitharaman on Tuesday.
- Nepal secured an allocation of ₹700 crore, which is a jump of ₹150 crore from previous year’s allocation of ₹550 crore. Sri Lanka, which has a number of India-funded projects, has received ₹245 crore, an improvement of ₹95 crore over last year’s funding of ₹150 crore. Seychelles, which had an allocation of ₹10 crore, has also received a boost in funding with the infusion of ₹30 crore.
Drug used to treat clots can protect against cobra venom damage
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GS 3: General awareness in the fields of IT, Space, Computers, Robotics, Nanotechnology, bio-technology
- Orange-red in colour and native to Tanzania, the Naja pallida — the red spitting cobra — is a formidable, 1.2-metre-long foe.
- When threatened, it raises its hood and hisses loudly. If this display doesn’t deter its predator, it opens its mouth.
- Muscles around the snake’s venom glands squeeze, releasing jets of venom onto the eyes, nose, and mouth of the threat.
- As the victim’s face sears in pain, the cobra takes the opportunity to lunge forward and bite, delivering a massive quantity of venom into the victim’s body.
- The venom attacks cells in the body and damages the nervous system.
- For most of the cobra’s regular victims — toads, frogs, birds, and other snakes — the only fate is death. A lucky human might be spared but with a permanent disability.
