Budget AnalysisHyundaiEconomic Survey 2015FISCAL DEFICIIndia must meet its medium!term "scal de"cit target o# $ %ercent o# &D'&ovt s(ould ensure e)%enditure control to reduce "scal de"cit&*+,H 2015-1. &D' gro/t( seen at over 0 %ct y-yotal stalled %ro1ects seen at a2out 3 %ercent o# &D'4 mostly in %rivate sector Economic gro/t( at mar5et %rices seen 2et/een 061 ! 065 %ercent in 2015-1.*EF+*7S (ere is sco%e #or 2ig 2ang re#orms no/ India can increase %u2lic investments and still (it its 2orro/ing targetsI8FLAI+8Lo/er in9ation o%ens u% s%ace #or more monetary %olicy easing&ovt and central 2an5 need to conclude monetary #rame/or5 %act to consolidate gains in in9ation control Consumer in9ation in 2015-1. li5ely to range 2et/een 5!565 %ercentC:**E8 ACC+:8 DEFICIEstimated at a2out 16$ %ercent o# &D' in 201;-15 and less t(an 160 %ercent o# &D' in 2015-1.'eo%le*ationali?ation o# ta)es is one 5ey re@uest6 Im%lementation and s%eedy action on &S>- Hyundai IndiaAlo/ering o# interest rates4 long term sta2ility in e)cise duty structure and introduction o# uni#orm ta) structure A- Honda cars IndiaA(e consumer also (as lot o# #avoura2le e)%ectations #rom t(e :nion Budget in terms o# Direct a)es /(ic( /ill give e)tra money in t(e (ands o# consumer and (el% revive t(e consumer sentiments6> A *oll2ac5 in e)cise duty4 im%lementation o# &S and introduction o# a scra%%age sc(eme>-Renault IndiaUNION BUDGET 2015-16"The credibility of Indian economy has been re-established. The world is predicting it is India's time to fy. We have turned around the economy. It is quite obvious that incremental change is not going to tae us anywhere. We have to thin in terms of a quantum !ump." #run $aitley% &inance 'inister in his budget speechSalient Features of Budget &ocus on governance &inancial inclusion and conquering infation (rdinance for land acquisition% &)I in insurance% reform in coal sector&)I liberalisation in defence and construction *assle-free business environment through non-adversarial ta+ regime&ocus on curbing blac money'erger of the &orwards 'arets ,ommission with -./I )ecision on capital account transactions centralised with &'0evitalise 111 infrastructureUNION BUDGET 2015-16&S im%lementation is e)%ected to 2e a ma1or 2oost #or t(e automotive industryB Attract good investment in t(e sector and also create demand6 Custom duty on im%ort o# com%letely 2uilt unit o# commercial ve(icles increased to ;0C #rom 10CB (is /ill (el% t(e local manu#acturers 2y stemming im%orts6Cor%orate a)ation cut to start #rom ne)t year4 trimmed to 25C #rom $0C #or ne)t yearB Com%anies /ill (ave more money to invest6*s 3D4000 crore investment in in#rastructure including construction o# one la5( 5ilometres o# ne/ road /ill give 2oost6 Investments and re#orm in agriculture /ill (el% #armers ma5e more money t(us 2oosting demand #or automo2ile %roducts in t(e rural mar5et6S%ecially t(is /ill (el% t(e t/o!/(eeler industry65 'ros o# t(e 2udget ont(e Automo2ile Industry+nly *s 35 crore allocated #or electric ve(icle manu#acturing t(at is seen as a disa%%ointment as t(e industry /as e)%ecting muc( more in t(is direction6 (ere /as no announcement #or t(e automotive sector in s%eci"c6 8ot(ing /as oEered to give 2oost to *F D in t(e automotive sector6Increase in service ta) cess on t(e %etroleum %roducts /ill also (urt t(e industry6 8o announcement to correct t(e inverted ta) structure6 Some o# t(e ra/ material attract more duty t(an t(e "nis(ed goods suc( as ru22er4 ally etc6 (is %uts Indian manu#acturer in a disadvantageous situation65 Cons o# t(e 2udget on t(e Automo2ile IndustryAutomo2ile Sector#llocation of I20 345 million to promote manufacturing of electric vehicles 6.7s8. ,oncessional customs and e+cise duties onhybrid and .7 parts e+tended until 'arch 95:;. t from this measure. *owever% the impact would not be signi>cant now% as sales of electric vehicles are very low.Increase in customs duty on fully-built commercial vehicles 6,7s8 from :5? to 95?. -uch signi>cant increase in customs duty would give domestic players lie Tata 'otors and #sho @eyland an advantage over their foreign counterparts. *owever% the impact would not be signi>cant% as fully built commercial vehicles imports &arm credit target increased by I20 455 billion to I20 A.4 trillion. *igher allocation to rural >nancing agencies such as 2#/#0) and 00/s% and to initiatives such as '