Other big-ticket proposals were the setting up a committee to review the impact of new technologies, like Artificial Intelligence, on the services sector and a Rs 40,000 crore push over five years for the semiconductor sector to focus on research and training centres.
One of the most keenly-watched sections of the speech is always tax proposals. Sitharaman began this section by announcing a tax holiday, till 2047, to any foreign company providing cloud services by setting up data centres in India. She also proposed a simplified tax regime for corporates and the rationalisation of the prosecution framework in the Income Tax Act.
During her speech the Finance Minister also announced seven high-speed rail networks – i.e., Mumbai-Pune, Hyderabad-Pune, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Silliguri – as ‘growth connectors’.
The budget, she said, was inspired by three kartavyas, or responsibilities. These are to accelerate and sustain economic growth by enhancing competitiveness, fulfill aspirations, and ensure every family, community, region has access to resources and opportunities.
For accelerated and sustainable economic growth, she proposed interventions in six strategic areas, including scaling up manufacturing in strategic sectors and the creation of ‘champion MSMEs’ and another to develop the country’s global bio-pharma hub under the Biopharma Shakti mission with an outlay of Rs 10,000 crore over five years.
Nirmala Sitharaman also unveiled a proposal for mega textile parks in ‘challenge mode’ and a National Fibre Scheme for self-sufficiency in this space, as well as the launch of a Mahatma Gandhi Gram Samaj initiative to support Khadi and handicrafts business. Expanding this sector, she said, would offer increased employment and announced an upskilling programme.
A significant proposal was to do with the banking sector. The Finance Minister proposed setting up a high-level committee to “comprehensively review” the sector and its operations. There was also a proposal for a comprehensive review of the Foreign Exchange Management framework.
And, in a bid to deepen India’s financial markets and draw more global capital, she also announced three key measures: a market-making framework for corporate bonds, a new route for foreign individuals to invest in Indian equities, and higher ownership limits for such investors in listed companies.
Also, taking a big step to reduce India’s dependence on China for rare earths, the Finance Minister said that dedicated corridors will be set up for the minerals in four states – Tamil Nadu, Kerala, Odisha and Andhra Pradesh.
Nirmala Sitharaman also said close to 25 crore individuals had come out of “multi-dimensional poverty” over the past decade. Mention was made of creating hubs for ‘medical tourism’, as part of which a proposal was made to launch a scheme to support state governments to set up five regional medical hubs with Aayush centres, infrastructure for diagnostics, and post-care rehabilitation to create jobs.
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