The Union Budget for 2011-12 had mixed impacts across various sectors: - Infrastructure allocation increased substantially while real estate saw some positive measures for affordable housing. - The IT industry was negatively impacted by an increased MAT rate and its application to SEZ units. - Steel saw higher export duties as a boost while oil and gas faced no tax reliefs. - Textiles, fertilizers, and banking received support but aviation and healthcare saw some cost increases.

2. InfrastructureInfrastructure allocation increased by 23% to Rs2.14tnFII limit for investment in corporate bonds issued by infra companies raised by US$20bn

3. Real EstateIncrease in home loan size to Rs2.5mn, to be characterisedas priority sector loan: Marginally positive for regional players like Purvankara, Unitech, HDIL, Sobha DevelopersImplementation of MAT on SEZ developers and units operating in those areas: Negative for DLF

4. Information TechnologyMAT increased from 18% to 18.5%MAT to be levied on companies operating in SEZMarginally negative for large sized and select mid-cap cos having material SEZ presence. No P&L impact, only CF impact

5. IT INDUSTRYUnexpected moves have hurt the IT companies in the form of higher taxes after the proposed higher Minimum Alternate Tax (MAT) rate of 18.5% for units operating in Special Economic Zones (SEZ) and on developers of the SEZs.

6. IT companies have been migrating to special economic zones as tax breaks under the Software Technology Parks of Indian (STPI) scheme will come to end this year under which companies operating in these units had been given a 10-year tax break that was to end in 2010. STEEL INDUSTRY- POSITIVE: Hike in Iron Ore export duty to 20% came in as a surprise, which will provide the much needed respite to domestic producers, as their margins were under pressure on grounds of high raw material prices.The domestic steel industry is expected to grow at a CAGR of 10% in next five years against the average annual growth of 8% achieved between 1991-2010.

7. OIL & GAS INDUSTRY –NEGATIVE:No cut in customs duty on crude oilNo reduction in excise duty on petrol/dieselProposed a system of direct transfer of Kerosene & LPGThe issue of Diesel Deregulation was not taken in the budget and no proposal was provided to deregulate it on the backing of rising inflation

8. BankingFY12 fiscal deficit targeted at 4.6% of GDP with net market borrowing of Rs3.43tn.Interest rate subvention of 1% on housing loans uptoRs1.5mn on property value of uptoRs2.5mnAdditional 1% interest subvention (cumulative 3%) for farmers who repaid their crop loans on timeNew banking licenses for few private players and NBFC

9. TEXTILES Union Budget 2011-12 has been positive for the Textile Sector. The Finance Minister has proposed to provide Rs. 3,000 crore to NABARD, which will benefit 15,000 cooperative societies and about 3 lakh handloom weavers. The optional levy of duty on garment and made-ups industry has been converted into mandatory duty of 10%.

10. PHARMA INDUSTRY-NEUTRALIn Budget 2011-12, Government didn’t focus to reduce healthcare cost as they made no proposals on reducing excise dutytax holiday on healthcare infrastructure and weighted deduction for expenses incurred outside R&D facility like overseas trials, preparations of dossiers, consulting & legal fees on healthcare and pharmaceutical sector. However, FM proposed to step up the plan allocations for Healthcare in 2011-12 by 20% to Rs. 26,760 crore as against Rs 22,300 crore in 2010-11.

11. FERTILIZERS INDUSTRY-POSITIVE:Fertilizer remains a prominent sector in Budget 2011-12. Government proposed to include capital investment in fertilizer production as an infrastructure sub-sector as the sector requires higher capital.Also, to ensure greater efficiency, cost effectiveness and better delivery for fertilizers, the Government proposes that it will take move towards direct transfer of cash subsidy to people living below poverty line in a phased manner.This is a positive move by the government and will benefit both farmers and companies in the industry.

12. AVIATION INDUSTRY-NEGATIVE:Overall the Union budget has been NEGATIVE for the aviation industry as the domestic air travel will cost more from the next financial year with the government raising service tax on it by Rs 50 and Rs 250 for domestic and international journeys respectively.However, there was relief to the Air India as the Finance Minister made a budgetary support of Rs 1,200 crore to the ailing national carrier as additional equity infusion.

13. HospitalityHotel accommodation in excess of Rs1,000/day and AC restaurants that serve liquor brought under 10% service taxTo impact most organized sector players but likely to be passed on to consumers

14. Sectoral impact AutomobilesIncreased budgetary allocations to agriculture and rural development schemes Imp: Positive for rural demand: M&M, Maruti and Hero Honda to be major beneficiaryNo hike in excise dutiesReduction in custom duty on carbon black feed from 5% to 2.5%

15. Highlights of the Budget 2011/12

16. POLICY REFORMSRaised foreign institutional investor limit in 5-year corporate bonds for investment in infrastructure by $20 billionFood security bill to be introduced this yearTo boost infrastructure development with tax-free bonds of 300 billion rupees

17. He brought down the eligibility age for senior citizen's tax exemption to 60 years from 65. Mukherjee also announced that exemption for senior citizens would be Rs. 2.5 lakh from the present Rs. 2.4 lakh.He also announced a special category of tax-paying senior citizens. Those 80 or above would get an exemption of Rs. 5 lakh

18. PriceService tax retained at 10 percentComputer parts and mobile accessories to get cheaperLED TVs to get cheaperDiapers to get cheaperHybrid car to go cheaperDomestic air tickets to get costlierHotel stay to get costlierMedical expenses (with AC rooms) to go up

19. Positive impact of budgetCurrent surcharge of 7.5 per cent on domestic companies proposed to be reduced to 5 per centAllocation to SarvaShikshaAbhiyan increase by 40 per cent to Rs 21,000 croreAllocation for education increased by 24 per cent over current yearAllocation of Rs 2,14,000 crore for infrastructure in 2011-12; an increase of 23.3 per cent over 2010-11Surcharge for companies cut to 5 per cent, from 7.5 per centCitizens over 80 years to have exemption limit of Rs 5 lakhTax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh

20. Crude palm used in sports exempted from customs duty to be positive for palm oil companiesDuty reduced on hybrid & electric cars along with batteries imported for such vehiclesBasic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per centNo import duty on ship parts positive for SCISpecial incentives for hybrid vehicle makers if manufacturing done in India to be positive for auto companies

21. Negative impact of budgetRate of MAT proposed to be increased from 18 per cent to 18.5 per cent of book profitsLower rate of Central Excise Duty enhanced from 4 per cent to 5 per centAC restaurants serving liquor to come under service tax netHealth Check-Ups in Private hospitals to become expensive

22. Travel, Healthcare to become expensive due to increased service taxBranded clothes may cost moreEXPENSIVE: International Air TravelEXPENSIVE: Domestic Air TravelTax on life insurance service providers could be negative for insurance companies

23. Thanking you