India is going through the phase of ups and downs. We dream of becoming an economic super power but this seems to be a distant reality. Though this year’s Interim Budget has given relief to SUV and mobile buyers but not to those who are struggling hard for food, shelter and cloth. Experts are calling this as a growth friendly Budget and very beneficial for certain segments of the market. Measures to improve the financial stability and efficiency have been stated by the finance minister P Chidambaram.
Interim Budget 2014 has given some relief to the buyers of cars, SUV and two wheelers as the excise duty on these has been lowered down but what about petrol and diesel price. Ever increasing price of fuel is affecting the sale of automobiles. To manage the negative growth in automobile sector, finance minister P Chidambaram has declared a decrease in excise duty. Earlier the excise duty on these items was 12% which has been cut down to 8%. Excise duty on sports vehicle was 30% which has been reduced to 24%.Mid-sized cars have also been covered under this reduction of excise duty. The new excise duty for these is 20%.
Finance Minister and his team has tried to boost the domestic product by reducing excise duty on certain items which are manufactured in the country. In this category domestic mobile manufacturing companies will witness some beneficial announcements. Nokia and Samsung which have the manufacturing units in India may see the reduction in excise duty. It is expected that this will also lower down the overall cost and buyer can purchase it at a bit lower price. This is a good move to decrease the import of mobile phones and to strengthen the domestic industry.
The soaps manufactured in India will also see a decline in price. Government has streamlined the customs duty on non-edible grade industrial oils, part of fatty acids and fatty alcohols. This has been done to support the domestic production of soaps and oleo chemicals.
Price of many consumer goods such as keyboards, digital cameras, electric irons, MP3 player, scanners, vacuum cleaners, TVs, refrigerators, printers, computers, hair dryers, dish washers etc will be lowered down. Manufacturing companies like LG are now looking into market trends to define the new price.
Rice may see a price decline as service tax on loading, unloading, packing, storage and warehousing of the commodity will be exempted.
Cord banking will be cheaper than before.
There is no change in the income tax rates.
Budget has something stored for students as well. Finance minister has proposed a moratorium period for interest on education loan taken from PSU banks between the period from March 2009 to December 2013.
Government has allocated Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy but will it affect the inflation and rectify the common man’s problem or not cannot be said with certainty.
Budget seems to be middle class friendly and restricted to the buyers of SUV and automobiles. But there is no respite to the problems of a poor man. Rising vegetables, fruits and other food items’ cost is still a problem.