| Fiscal Deficit - 5.1% of GDP. To be
further reduced by 0.4% by higher revenue buoyancy and
higher disinvestment receipts (Rs 12,000 crore) |
| Revenue Deficit - 3.6% of GDP |
| Defence Outlay raised by Rs 7,539 crore
to Rs 62,000 crore (13.8% increase). |
| 27 PSUs to be privatised |
| 1.5% reduction in Interest rate on PF
and Small Savings |
| Foreign Investment limit increased to
49% |
| Surcharge on income tax cut to 2% |
| Service Tax on 14 new areas, including
Telecom and Financial services |
| 10-year Tax holiday for infrastructure
(roads, highways, rail system, water treatment and supply,
irrigation, sanitation, solid waste management) |
| Tax on co-operatives cut to 30% |
| Winners of lotteries, game shows to
pay 30% TDS |
| Increased import duty on agri commodities
to the tune of 70 to 85% |
| Weighted reduction of 150% on expenses
for companies investing in R & D in Biotechnology,
Clinical trials, patent applications and regulatory affairs. |
| Abolition of Customs duty surcharge
for Pharma industry, effected by lowering cost of raw
materials. |
| Cars to cost less. 8% cut in excise
duty. Second-hand car import duty -105% (almost thrice
the average customs duty rate). |
| Two-wheelers to cost less. Excise duty
reduced from 24% to 16%. |
| Accelerated depreciation of 50% for
commercial vehicles in the first year of purchase |
| Soft drinks to cost less. |
| Burden of surcharge shifted to Tobacco
industry with a15% surcharge on cigarettes (for National
Calamity Contingency Fund) |
| Government approval not required for
lay-off, retrenchment and closure by industrial establishments
employing less than 1,000 workers. |
| 10-year Tax holiday for investment in
IT Parks and Special Economic zones |
| IT sector spared Service tax |
| Computers to cost less. Duty reduction
in finished goods, but overall increase in duty on components. |
| 5-year Tax holiday for Telecom sector
re-introduced (for units commencing operations on or before
March 31st 2003) |
| Two-way fungibility for GDRs and ADRs |
| Dividend Tax rate lowered from 20% to
10%. |
| Customs duty on Cement brought down
from 35% to 25%. |
6:20:21 PM 
