This document comprehensively covers the provisions of the Union Budget 2020-21 and offers a detailed take on how these provisions can impact the key sectors and industries of the Indian economy. We’ve undertaken a holistic overview of these sector proposals from the perspective of monetary allocations, public policy, and proposed reforms for the future.

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U N I O N B U D G E T 2 0 2 0 – A N A L Y S I S
K E Y S E C T O R P R O P O S A L S
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B A C K G R O U N D
Amidst an economic slowdown in India, all eyes were on the Finance
Minister, Nirmala Sitharaman, to deliver the Union Budget for the year.
Her speech had an overall theme which centred around 3 aspects;
Aspirational India, Economic Development, and Caring Society.
Via this presentation, we aim to showcase the major highlights of the
Budget speech and its provisions, whilst also emphasizing on the key
sectors which can look to benefit from a public policy perspective, going
forward.

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C O N T E N T S
SECTOR SLIDE NUMBER
AGRICULTURE AND FOOD PROCESSING 4 – 5
INFRASTRUCTURE 6 – 7
START-UPS AND MSMEs 8 – 9
BANKING, FINANCE AND NBFCs 10 – 11
EDUCATION AND SKILL DEVELOPMENT 12 – 13
MANUFACTURING 14 – 15
AUTOMOTIVE 16 – 18
TECHNOLOGY 19 – 20
REAL ESTATE 21 – 22
* Click on the individual topics to jump to their specific provisions

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I M P A C T O N A G R I C U L T U R E A N D
F O O D P R O C E S S I N G

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A W A V E O F C H A N G E S I N T H E S E C T O R
P U B L I C P O L I C Y
 Expanding the PM-KUSUM
Scheme to help 2 million farmers
in setting up stand-alone solar
pumps
 Helping another 1.5 million
farmers in solarizing their
existing grid-connected pump
sets
 The NABARD re-finance scheme
will be further expanded.
F O O D P R O C E S S I N G
A N D S T O R A G E
 To build a seamless national cold
supply chain for perishables, the
Indian Railways will set up a “Kisan
Rail” – through PPP arrangements.
There shall be refrigerated coaches
in Express and Freight trains as
well
 Proposing to create warehousing
as per WDRA norms. Government
to provide viability gap funding for
setting up the warehouses at block
level; collaborations to be
undertaken in PPP mode
F U N D S A N D T A R G E T S
 Agriculture credit target for the
year 2020-21 has been set at INR
15 lakh crore. All eligible
beneficiaries of PM-KISAN will be
covered under the KCC scheme
 Allocation of INR 1.60 Lakh crore
for agriculture and allied activities
for 2020-21
 Aim of raising fish production to
200 lakh tonnes by 2022-23
 Doubling milk processing capacity
from 53.5 million MT1 to 108
million MT by 2025
1 MT = Metric Ton

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I M P A C T O N I N F R A S T R U C T U R E

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 The National Infrastructure Pipeline was launched on
31st December 2019 for more than 6500 projects
 Projects range across housing, safe drinking water,
access to clean and affordable energy, healthcare for all,
world-class educational institutes, modern railway
stations, airports, bus terminals, metro and railway
transportation, logistics and warehousing, irrigation
projects, etc.
EXISTING INFRASTRUCTURE FOCUS
 INR 100 lakh crore would be invested on infrastructure
over the next five years; INR 1.7 lakh crore allotted for
transport infrastructure in 2020-21
 A National Logistics Policy to be released soon to create
a single-window e-logistics market
 Bengaluru Suburban transport project worth INR 18,600
crore to be green-lit; Government to provide 20% equity
FUTURE INVESTMENT AND NEW INITIATIVES
 Accelerated development to be undertaken for highways
including 2500 km access control highways, 9000 km of
economic corridors, 2000 km of land-port roads and
2000 km of strategic highways
 The Jal Vikas Marg on National Waterway-1 will be
completed. Further, the 890 Km Dhubri-Sadiya
connectivity will be done by 2022.
HIGHWAYS AND WATERWAYS
 Proposed to expand the national gas grid from the
present 16,200 km to 27,00 km
 INR 22,000 crore allotted to the power and renewable
energy sector in 2020-21
 Indian Railways aims to achieve electrification of 27,000
km of tracks
OIL, GAS, AND RENEWABLE ENERGY

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I M P A C T O N S T A R T - U P S A N D
M S M E s

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A N E W D A W N F O R S T A R T - U P S A N D M S M E s
 INR 27,300 crore allocated for development and promotion of Industry and Commerce for the year 2020-21
 Eligibility criteria for registering as a startup has increased from a turnover of INR 25Cr. to INR 100Cr. Also, startups with
turnover of up to INR 100 crore can now claim 100% deduction on their profit for computing tax liability for 3 consecutive
years out of 10 years since its incorporation
 A subordinate debt scheme to be introduced for MSME which would be counted as quasi-equity
 The tax exemption benefit that was given to the startups for a period of 3 years in a block of 7 years has been increased to 10
years, meaning that a startup can now avail tax benefits for a period of 3 years out of a block of 10 years
 ESOPs of startup employees will be liable for tax in one of the three cases:
– Five years after exercising the option
– The year in which they sell shares
– The year when the employee leaves the company, whichever is earlier
 Tax Audit for MSME shall be required in case the turnover exceeds Rs.5 Crore which was earlier Rs.1 Crore. However, this
benefit can only be availed by those MSME whose total cash transaction does not exceed 5% of the total transactions
 Under Section 194O, TDS of 1% to be paid by an e-commerce operator for sale of goods or provision of services facilitated by
it through its digital or electronic facility or platform. (with effect from April 1, 2020)
 Government e-Marketplace (GeM) is moving ahead for creating a Unified Procurement System in the country for providing a
single platform for procurement of goods, services and works

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I M P A C T O N B A N K I N G , F I N A N C E
A N D N B F C s

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P R O P O S E D C H A N G E S A N D R E F O R M S
Deposit Insurance and Credit Guarantee Corporation (DICGC) to increase Deposit
Insurance Coverage for a depositor, from INR 1 lakh to INR 5 lakh per depositor
INTEREST ON HOME
LOANS
The Govt. proposes to make necessary amendments to the Factor Regulation Act 2011.
This will enable NBFCs to extend invoice financing to the MSMEs through TReDS, thereby
enhancing their economic and financial sustainability
REFORMS FOR NBFCs
FINANCING MSMEs
INR 22,000 crore has already been provided to support the National Infrastructure
Pipeline. This would cater for equity support to Infrastructure Finance Companies such as
IIFCL and a subsidiary of NIIF. They would leverage it, as permissible, to create financing
pipeline of more than INR 1,00,000 crore. This would create a major source of long-term
debt for infrastructure projects and fulfil a long-awaited requirement
INFRASTRUCTURE
FINANCING
DEBT RECOVERY LIMIT
FOR NBFCs
The limit for NBFCs to be eligible for debt recovery under the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act
2002 is proposed to be reduced from INR 500 crore to asset size of INR 100 crore or loan
size from existing INR 1 crore to INR 50 lakh

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I M P A C T O N E D U C A T I O N A N D
S K I L L D E V E L O P M E N T

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E S C A L A T I N G I N D I A N E D U C A T I O N
P R O P O S E D R E F O R M S
 Govt. proposes INR 99,300 crore
for education sector in 2020-21
and about INR 3,000 crores for
skill development
 New Education Policy to be
announced soon and steps will
be taken to source External
Commercial Borrowings and FDI
to get better teachers and labs
S E C T O R A L
I N I T I A T I V E S
 About 150 higher educational
institutions to start apprenticeship
embedded degree/diploma
courses by March 2021
 Degree level full-fledged online
education programme to be
offered by top-ranked institutions
 “Study In India” programme - Ind-
SAT proposed in Asian and African
countries for benchmarking
foreign candidates who receive
scholarships for higher education
in India
F U T U R E
D E V E L O P M E N T S
 Proposal of a National Police
University and a National
Forensic Science University in the
domain of policing science,
forensic science, cyber-forensics
 To tackle the shortage of
qualified medical doctors,
proposal to attach a medical
college to district hospitals under
PPP model (would receive
Viability Gap Funding).

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I M P A C T O N M A N U F A C T U R I N G

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B O O S T I N G M A N U F A C T U R I N G H O L I S T I C A L L Y
P R O P O S E D R E F O R M S
 A scheme focused on encouraging manufacture
of mobile phones, electronic equipment and semi-
conductor packaging; Can also be applied to
manufacturing of medical devices with suitable
modifications
 National Technical Textiles Mission from 2020-21
to 2023-24 (allotted INR 1480 Crore) to promote
export of technical textiles from India
 All ministries to issue quality standard orders
throughout the course of the year for “Zero Defect
– Zero Effect” initiative in manufacturing
C U S T O M S D U T Y R E M O V E D O N
 Specific items of metals such as lead, zinc and tin
 Machinery used for certain projects such as
electricity generation, specified metro projects, as
well as on specified goods required for
construction of roads
 Copper metal and articles used thereof in
manufacturing of specified electronic items
 Sulphur fuel oil of certain standards, and polyester
liquid crystal polymers used in manufacture of
connectors
Customs duty has been reduced from 10% to 5% and 7.5% respectively for calcined petroleum coke and calendared plastic
sheets used in smart card manufacturing. It has also been reduced rom 12.5% to 7.5% for specific usage of platinum and
palladium in the manufacture of precious metal colloids and compounds.

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I M P A C T O N A U T O M O T I V E

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E N C O U R A G I N G D O M E S T I C M A N U F A C T U R I N G
 For the auto components sector, among others, a scheme of INR 1000 crore will be anchored by EXIM Bank together with
SIDBI, both contributing INR 50 crore each. This INR 100 crore would be achieved towards equity, R&D and technical
assistance. Debt funding of INR 900 crore from banks would be made available.
 Change in customs duty to encourage local manufacturing of vehicles are as follows:
S. NO. COMPONENT EXISTING RATE NEW RATE
1 Catalytic converter 10% 15%
2
Noble metal solutions and compounds used in manufacturing of
catalytic converter and its parts
5% 10%
3
Platinum or palladium used in manufacturing of catalytic converter
and its parts
5% Applicable Rate
4
Parts and other specified inputs for manufacture of catalytic
converters
5% 7.5%
5
Completely Built Units (CBUs) of commercial vehicles (other than
EVs) from 1st April 2020
30% 40%

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E N C O U R A G I N G D O M E S T I C M A N U F A C T U R I N G
 Basic Customs Duty (BCD) for catalytic converters, which are used in BS VI engines, is now 15% against 10% earlier.
 BCD for components used in the manufacture of catalytic converters such as certain ceramic parts and metal
parts/solutions/compounds has been raised to up to 10% from 5%.
 Changes in customs duty under Phased Manufacturing Programme for electric vehicles (from 1st April 2020) are as follows:
S. NO. TYPE OF UNITS EXISTING RATE NEW RATE
1 Completely built units of buses and trucks 25% 40%
2
Semi Knocked Down (SKD) units of buses, trucks, and two-
wheelers
15% 25%
3 SKD units of passenger vehicles and three-wheelers 15% 30%
5
Completely Knocked Down (CKD) units of passenger vehicles,
two-wheelers, three-wheelers, buses and trucks
10% 15%

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I M P A C T O N T E C H N O L O G Y

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I N D I A F O R T H E F U T U R E
 New policy to enable private industry players to build Data Centre parks throughout the country.
 Fibre To The Home (FTTH) connections through Bharatnet will link 100,000 Gram Panchayats this year - INR 6000 crore
assigned to Bharatnet programme in 2020-21.
 Outlay of INR 8000 crore over a period of 5 years for the National Mission on Quantum Technologies and Applications - new
frontiers in computing, communications, cyber security with wide-spread applications.
 Proposal to develop 5 new smart cities in collaboration with states in PPP mode.
 Knowledge Translation Clusters would be set up across different technology sectors including new and emerging areas.
 For designing, fabrication and validation of proof of concept, and further scaling up Technology Clusters, harboring such test
beds and small-scale manufacturing facilities would be established.

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I M P A C T O N R E A L E S T A T E

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N E W R A T E C U T S A N D D E D U C T I O N S
Proposal to extend by 1 more year the additional deduction of INR 1,50,000 for interest
paid on home loans taken for buying affordable homes.
INTEREST ON HOME
LOANS
Tax holiday on profits earned by developers on affordable projects approved by 31st
March 2020
Extension of the date of approvals on affordable projects for availing this benefit by 1
more year.
TAX RELIEF
Currently, if the consideration value is less than circle rate by more than 5 percent, the
difference is counted as income both in the hands of the purchaser and seller
Proposal to increase the limit of 5% to 10%.
CONSIDERATION VALUE
LIMIT

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Disclaimer
This publication does not constitute as professional advice. The information in this publication has been obtained or derived from sources believed by Coinmen Consultants LLP (Coinmen) to be
reliable but Coinmen does not represent that this information is accurate or complete. Any opinions or estimates contained in this publication represent the judgment of Coinmen at this time and are
subject to change without notice. Readers of this publication are advised to seek their own professional advice before taking any course of action or decision, for which they are entirely responsible,
based on the contents of this publication. Coinmen neither accepts or assumes any responsibility or liability to any reader of this publication in respect of the information contained within it or for any
decisions readers may take or decide not to or fail to take.
At Coinmen, our aim is to provide financial expertise to help set up your business and provide
profound advisory for its grow. This presentation is put together by our team to ensure that
you’re prepared well in advance before setting up a business in India and can navigate swiftly
through the required compliances.
T H A N K Y O U .