New Delhi: Credit rating agency Icra says this year’s budget is likely to focus on infrastructure and welfare programmes. It also says expectations are high for tax-related sops for the IT industry, infrastructure, and low-cost housing.
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India’s corporate borrowers are waiting for the budget to be announced before they make any big moves. Investors expect the government’s new borrowing target will exceed the February estimate of Rs362,000 crore. More government borrowing could put pressure on the corporate bond market.
Urban development minister Jaipal Reddy wants the government to scrap excise duty on city buses. The finance ministry has already halved excise duty for buses over the last two years to 8%.
The government has been trying to improve public transport in India’s crowded cities and is already helping state governments buy more than 15,000 buses.
The textile industry is lobbying the government to abolish the 5% duty on synthetic fibres when it unveils the budget. The industry says the move will make them more competitive by allowing them to buy cheaper fibre from abroad.
About half of the textiles produced in India are exported.