ASSIGNEMENT- 1

IMPACT OF LATEST BUDGET 2019 ON BUSINESS ENVIRONMENT

ON VARIOUS INDUSTRIES.

Vital point: Rupee value is impacted due to budget.

Highlights: Budget 2019: Imported cars to get costlier following customs duty hike
Cars that are fully imported into the country by luxury brands such as Mercedes, BMW, Audi, Volvo and
Jaguar-Land Rover (JLR) will see a significant price hike following a rise in customs duty to 30% from
25%.

Highlights: Budget 2019 speech: Custom duty on gold, other precious metal raised to 12.5%
Custom duty on gold and other precious metals increased by 2.5% to 12.5%, says Finance Minister
Nirmala Sitharaman.

Highlights: Budget 2019 speech: Start-ups, investors filing declarations not to come under to
scrutiny for valuation premiums. ‘Stand Up India' scheme to continue until 2025
To resolve the angel tax issue, start-ups and investors filing declarations will not be subject to scrutiny on
valuation premiums, says Finance Minister Nirmala Sitharaman.

Highlights: Budget 2019 speech: 25% tax rate extended to firms with up to Rs 400 cr annual
turnover
Earlier, the tax rate of 25% was applicable only to companies with up to Rs 250-crore annual turnover.
This has been extended to companies with turnover of up to Rs 400 crore. That will leave only 0.7% of
all companies outside of the 25% tax rate, says FM Nirmala Sitharaman.

Highlights: Budget 2019 speech: ‘Stand Up India' scheme to continue until 2025

Finance Minister Nirmala Sitharaman says that the ‘Stand Up India' scheme will continue until 2025.

Automobile Industry.

The proposed GST for EVs is five per cent from 12 per cent which can boost the sales
as it could make the EVs more cost-effective.
  The finance minister proposed a guarantee of purchase of loans from NBFC by the
bank for one year. The proposal is also to cover loss of up to 10 per cent.
 In the next five years, 1,25,000km of rural roads are proposed to be upgraded with
investment of over Rs 80,250 crore which could benefit commercial vehicles.
 Customs duty has been increased from 25 per cent to 30 per cent.
 The fuel prices see an increase of Rs 2 per litre - Re 1 for increased excise duty and
Re 1 for road and infrastructure cess.
 The automotive industry attracts 28 per cent GST, although, gets 0-22 per cent
compensation. The GST stays unchanged.
 A two per cent grant for automobile component manufacturers.

Gold demand to fall by 2.4% in 2019 due to hike in import duty

Increase in import duty on gold is likely to be dampener for the yellow metal.
According to World Gold Council’s estimates a 2.5% increase to gold’s import
duty may result in a reduction of gold demand by approximately 2.4% in 2019.
World Gold Council (WGC) said in a report released on Thursday that if the
higher levy were to become permanent, it could reduce long-term Indian
consumer demand by slightly less than 1% per year.
In the Union budget 2019, the finance minister Nirmala Sitharaman proposed to
increase custom duty on gold and other precious metals from 10% to 12.5%.
After the budget announcement, commodity analysts had said that the hike in
import duties was unexpected.

On July 5, the online pharma industry will be eagerly awaiting Finance Minister Nirmala
Sitharaman’s presentation of the Union Budget 2019-2020 - one of the most important
markers of the economic growth of the country. According to an EY Report ‘E-pharma:
Delivering Healthier Outcomes,’  Indian e-pharma players are expected to reach a
combined market size of $2.7 billion by 2023. Evidently, this decade mark the formative
years for the Indian Epharmacy sector. The retail pharmaceutical sector was valued at
$25 billion in FY17, and is projected to grow at a CAGR of 15 percent to reach $59
billion by 2023. This is an opportunity for regulators to bring clarity and stability to the
nascent e-pharma industry, and allow it to flourish.