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February 28, 2001                                       Feedback  

    - EXIM POLICY '00



    - BUDGET 00-01
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First-cut analysis: Favourable impact seen on equity markets

Overall, the Union Budget 2001 is expected to have a very favourable impact on the Equity markets.

Positive Direct Impact

  • Removal of all surcharges except the 2% Earthquake Relief surcharge.
  • Interest Rate Cuts on small savings schemes reduced by 1%- 1.5% as of March 1, 2001.
  • FII investment limit increased from 40% to 49%.
  • Dividend Tax reduced to 10% from 20%.
  • No tax on Long Term Capital gains if re-invested in IPOs.

Positive Non-Fiscal Measures

  • Acceleration on PSU Disinvestment Reforms
  • Concrete Measures towards reduction in Govt. Wage Bill
  • Levying of User Charges for Infra for Govt. Services
  • Strong Commitment at reducing taxes and simplifying tax structures
  1. Removal of all surcharge except that for Gujarat Earthquake
  2. Rationalisation of excise duty to three rates: The three rates to be reduced to single rate of 16%.
  3. Customs' Duty to be cut to 20% peak rate in 3 years

Rediff-CRISIL Budget Impact Analysis
Budget 2001

Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site.

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