A brief analysis of the Union Budget 2015 for India, focusing on India's growth prospects in Infra and Power sector, commitments to support manufacturing, capacity building and entrepreneurship promotion along with improvements proposed for better governance

1. UNION BUDGET 2015 –
AN ANALYSIS
BY SANDEEP WAGHMARE
Presented at:
Department of Business Management, RTM Nagpur University | 11th Feb, 2015

2. Concept of budget
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Among other things, following are the typical
characteristics of a Public Budget
 Estimates of Expenditure and Revenue (Sectoral,
Target/Focus areas, etc.)
 Has a tenure of 1 year
 Highlights short term goals and long term strategy

3. Indian scenario – challenges of new
economy
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 Growing start-up ecosystem
 Trend moving towards employment creation than only seeking
employment
 Sectors opened: Agriculture, Social Sector, Internet, Urban Transport
 Changing commerce: E-Commerce, mCommerce, micro payments
 Poor rank on ease of doing business
 Significant entry barrier
 Sustained red tape
 Societal perception
 Skills gap across sectors / hierarchy
 Reliance on conventional skills
 Lower acceptability to change
 Access to skill enhancement

4. Vision for growth – a need
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 Improve internal business environment to drive “Ease of Doing
Business”
 Focussed incentives
 Simplified taxation
 Reduced red tape
 Make India more competitive
 Adopting global best practices in business
 Provide skilled labour
 Diversify from protective policieis
 Drive social inclusion, thereby, push towards growth
 Ensure financial inclusion (Jan Dhan)
 Assure housing (Low Cost Housing schemes)
 Improve services (water supply, sanitation, health)
Pushing toward independent India …

5. Marching towards self reliance
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 Reform the urban sector
 Enhance the quality of urban life via improved services
 Improve connectivity within as well as between urban centres
 Create environment of brain drain
 Raise the outreach of energy via more and better generation and
improved distribution
 Focus on renewable sector (Solar / Wind / etc.) (e.g. created 70000 new jobs in
2013-14 while adding 12GW to grid)
 Adopt technology based loss reduction (e.g. Nagpur water supply, R-APDRP)
 Promote technology innovation to improve outreach to off-grid regions (e.g.
micro grids)
 Improve public distribution system
 Increase storage capacity (e.g. new warehouses, etc.)
 Enhance distribution via rail / road /etc. (e.g. new terminals, etc.)
 Improve tracking and quality management

6. While much remains to be done, some of the
key offerings of the Budget 2015 are listed.
Budget 2015 offerings
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By Sandeep Waghmare

7. Overall - Reinstating commitment to growth
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Funding to be raised via..
#1: Road cess in form of increased excise on Petrol and Diesel
#2: Government divestments proposed to the tune of Rs.695 billion
#3: More onus on CPSUs to raise investment/funds via capital markets as well
as otherwise
#4: Private equity via PPPs to raise Rs.200 billion

8. Infrastructure: Investment boost through
higher public spending
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9. Power: Boost to investments
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10. How will the budget boost
manufacturing? ↗
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 Support through forward and backward linkages – like road,
rail, etc.
 Improvement in ease of doing business – speedy processing,
reformed bankruptcy laws, etc.
 Reduction in custom and excise duty on certain inputs -
supporting “Make in India”

11. Capacity building and Entrepreneurship
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 National Skills Mission set up under the Skill Development
Authority
 New AIIMS, IITs and IIMs along with other National Institutes to be
set up
 A fully IT-based Student Financial Aid Authority to be set up. It will
administer and monitor scholarships as well as educational loan
schemes through the Pradhan Mantri Vidya Lakshmi Karyakaram
 Visa-on-Arrivals for 150 countries might provide easy access to
students, researchers and academicians
 Self Employment and Talent Utilization (SETU) plans an outlay of
Rs.1000 crores for young companies and technologies
“No student should have to miss higher education due to financial
constraint” – Arun Jaitley, Union Minister

12. Services – empowering change
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 Greater and more flexible financial allocations to
States
 Reformed PPP model to ensure government picks
up more risk of the project
 Urban renewal schemes continue to be shared
between Centre and State
 Emphasis on technology adoption

13. Building clearer accountability
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 Enhanced transparency
 Double entry system
 attendance.gov.in/
 Citizen led initatives
 Janaagraha
 SLB Connect
 Crowd sourcing
 IMakeMyCity
 Etc.
One other key emphasis on

14. What remains to be done…
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 Focussed approach to innovative business models
like eCommerce, etc.
 Unstable exchange rate of USD, primary currency
for students going for higher education
 And much more…

15. THANK YOU!15