As expected, this was a year of goodies for every significant constituency. The pension scheme, increase in outlay for North- East India, money in the hands of consumers through tax breaks are likely to have significant trickle-down impact on the economy and metals sector in the short-term.
However, it must be said that some long standing needs of the metals and mining sector remain unfulfilled.
The interim budget proposed this year aims to continue the momentum that we have seen in FMCG buoyancy over the last few quarters. This budget focusses more on the consumer, consumption and measures around rekindling the investment cycle.
Financial Services sector has been given a push by increasing the disposable income and further providing liquidity cushion. Key measures that will impact liquidity, consumption and lending are regular interval payment to farmers with marginal land holdings, nil tax for income till INR500,000, increase in standard deduction and gratuity increase by INR10 lakh and relaxation in TDS rules on interest income.
One of the key announcements for the Government sector during the intern budget 2019 was the interest subvention of two percent for farmers hit by natural calamities for the entire period of repayment of crop loans. The government also has a set target of 1 lakh digital villages in the next five years.