Transcript SWOT - ICSI Knowledge Portal

Pre-budget scenario/expectations and its impact on
Indian economy for 2012- (OUTLINE)
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SWOT of Indian economy in brief (to understand the
problems and to expect the remedy on the same)
Areas covered –
Expectation as per general section of public ( Aam
Aadmi )
Expectations of MSME sector
Expectation of farming sectors
Expectation of industries including (Bank, Textile,Oil
and Natural gases) etc
SWOT ANALYSIS
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Strength of Indian economyA large pool of skilled labour.
Young dynamic entrepreneur and educated
class of which is leading the opening of
market for outsiders and also enhancing the
scope of services in abroad.
Huge amount of natural resources.
Weakness
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As per the Report given by the Ambassador
of WTO the problem faced in India is
-Lack of transparency, huge level of
corruption, delay in implementation of policy,
lowering the rank of India to 132 in
comparison to other countries (Doing India
Business Report 2012 ), lack of fund for
infrastructure of India,, restriction on FDI FII
etc.
Opportunities
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Vision of India 2020 can become reality by
emerging the number of areas and by
overcoming those weakness
Need is only to have clear and honest step
rather than decision taken for own political
advantage.
Threats
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Increasing trade cycles in Indian economy
(inflation and recession) powers
Foreign exchange fluctuation which is itself a
result of –
High interest rate, high inflation ,current a/c
deficit, political uncertainty
Expectations of all but at what
cost??????
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Every other sector wants its own advantage and benefit from
the budget….. But the decision should be taken only after
considering the present economy conditions that arelowering down of GDP @ 6.9% at last quarter of 2011
Threat of facing the global challenge like recession and
decreasing the value of rupee with respect to dollar
Increasing POL (petrol oil and Lubricant) cost
Facing competition from china and other countries
Problems faced by MSME and farming sectors
Need for increase in infrastructure area
Lowering of agriculture contribution in GDP reached to 18%
What's the need in present budget ?
(industry or sector wise)
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Serious steps are required to provide help to theMSME sectors (Because we should not forget the role of
MSME 45% of India's manufacturing and 40% in export and
almost 70 million are getting employment out of it) hence loan
assistance up to the suspension of 2 years should be given
which will be helpful in managing working capital and shutting
down/NPAs can be controlled.
As the new innovations are coming up everyday IPR is
becoming the need of an hour ..provision to protect the IPR
rights for MSME should be brought in to face the inadvertent
challenges.
Other Industrial expectations and
relief 
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Textile industriesThis industries need really a boon to recover
, hence basic custom duty on power, steam
coal , thermal coal should be
removed..(suggetion can be given that state
govt. should also reduce or remove the vat
on textile products) this will help in reducing
the cost of product.
Fertilizing and farming sector
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it is suggested that custom or import duty on liquefied natural gas
should be ended to support fertilizers and power plants
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For farming sectors allocation of fund/loan assistance should be
properly monitored.
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Proper system of determining the minimum support price should there
to see trade cycles.
Oil and petroleum sectors---LNG should be given the status of declared goods to reduce the state tax
Crude oil and petro products can be covered in the list of GST
Use of natural and eco friendly fuel to be encouraged for that uniform
rate of tax to be maintained in all the states
To increase the revenue of government and to the ecofriendly impact
excise on diesel vehicle can be increased
Corporate sectors
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Companies which are engaged in the function of CSR must be
given the deduction up to 150% to increase there social aspect
( also its reporting must be directed by company secretary)
Corporate tax for domestic companies must be decreased at
least to level of 25% (without surcharge) and also to foreign
companies relatively …. Reason is to increase the fund
availability with them and to encourage their participation in
infrastructure
In the same way MAT may also be reduced from 18.5% to 15%
(This sector is to be beneficiate because to have fund for
infrastructure and their participation in this regard)
Social sector expectations
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Malnutrition of children, child labour,
farmers' suicide and problems witnessed
by women working in Self-help Groups..
Surely these areas need a special
attention in the Budget.
Expectations of general class (aam
aadmi )
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Surely there is a need to give some extent of relief to salary
class or middle class….from increasing inflation situation Which
may be
Increasing the deduction limits u/s 80C to 1.5lac
TDS limit on the interest from the deposit of banks must be
increased from 10000/ - to 30000/- so to increase the saving
and depositing habits .
Either deduction on the interest from bank deposit should be
allowed with introduction of separate section
To see the rising cost of medical exemption limit of medical
reimbursement must be raised to 50000/-
Contd…..
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Limit of leave encashment exemption should be
revised for supporting the retiring of non govt
employees up to Rs. 10 lac
Interest on the housing loan in case of self occupied
property should be raised to Rs 3 lac
Investment on certain bond u/s 54 EC can be
increased to control the inflationary situation
To increase the revenue of department tax deduction
should be raised upto 30% in case of non
submission of PAN .
Combine efforts/Steps in part of
Government and RBI
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The most important part is to relax the monetary
policy and the tighten the fiscal policy its unfortunate
that in our country its reverse….
From the resent step of RBI to reduce the CRR
(5.5%) this can be understand that need to increase
the liquidity is been identified but this will be
successful only when the fiscal consolidation should
be taken properly by the Government.
Conclusion
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Whatever be the outcome of the budget
2012……. honest allocation of funds and
responsible effort is always welcome for
overall growth……..
Thanking you …..to all……….