Presentation to Members of Institute of Cost Accountants Union Budget 2019 13th July 2019

GDP Growth Country 2018 2019 Brazil 1.1 1.4 Russia 2.3 India 7.3 6.8 China 6.6 6.2 Country 2018 2019 World 3.6 3.2 US 2.9 2.6 Eurozone 1.8 1.2 UK 1.4 Japan 0.8 0.5

Macro-economic Performance of Bric Countries Parameters Years Brazil Russia India China GDP Growth% 2018 1.1 2.3 7.3 6.6 2019 1.4 6.8 6.2 Inflation Rate % y-o-y 3.7 2.9 3.9 1.9 4 4.9 2.5 Fiscal Deficit as % GDP -7.1 2.6 -3.4 -4.2 -5.8 2.1 -3.3 -4.5 Public Debt as % GDP 77.2 10.3 49.3 19.4 82.2 9.5 48.3 22.5 Current A/c Balance USD Billion -14.5 113.8 -64.9 49.1 -24.9 115 -53.3 37.2

India Economic Slowdown Demand Side Parameters - Growth in Percentage Parameters 1Q2019 4Q2018 Private Consumption 7.3 8.0 Gross Fixed Capital Formation 3.6 11.7 Public Consumption 9.2 6.5 Exports 10.6 16.7 Imports 13.3 14.5 Supply side - Growth in Percentages Manufacturing 3.1 6.4 Trade, hotel, transport, Communication 6.0 6.9 Construction 7.1 9.7 Agriculture, Forestry, Fishing 0.1 2.8 Mining 4.2 1.8 Social and Personal Services 10.7 7.5 Fin, Real Estate, Professional Services 9.5 7.2

Economic Slowdown Retreat of Globalisation Inventory levels in auto / real estate very high Collapse in private consumption – demonitisation Rural economy badly hit SMEs slowdown High NPAs – Tight lending Vicious cycle Roll-out of GST Small businesses badly hit Compliance with GSTN Network Highest rate of Unemployment Crisis in aviation sector ILFS, DHLF defaults

Economic Survey Virtuous cycle Savings Investments Exports Demography Insolvency Code Swachta Abhiyan Legal Framework Tax Administration Behaviourial Economics

Reform, Perform Transform Aasha, Vishwas, Aakansha यक़ीन हो तो कोई रास्ता निकलता है हवा की ओट भी ले कर चराग़ जलता है 

Long Term Vision: 5 Trillion Dollar Economy

Karya purusha karena lakshyam sampadyate With determined human efforts, the task will surely be completed Mazboot desh ke liye Mazboot Nagarik

Turning Points in the History of Nation Date Turning Points 15th Aug 1947 Tryst with Destiny 24th July 1991 Tryst with Reforms 1st July 2017 Tryst with Taxation 5th July 2019 Tryst with Economy

8% p.a. Growth Expected

Paradigm Shift One Nation, One Tax One Nation, One Grid Old Policy New Policy Mixed Economy Market Economy Public Sector Private Sector Internal Financing External Financing Agriculture Infrastructure One Nation, One Tax One Nation, One Grid

Implications of Union Budget 2019

Heavy Inflows in Stock Exchange Commanding Heights of the Economy are up for Disinvestment Rs. 1.05 lakh crore of Disinvestment in Central PSUs Public Shareholding increased from 25% to 35% Promotors Quota to be maximum 65% from 75% Surplus shares to be offered for sale or MNCs delisting Huge Inflows Expected in Stock Market: Rs. 4 lakh crores Huge supply of shares can impact its prices. Timing is very important in minimizing the impact Over 1400 companies likely to be impacted. Special mention: TCS, Wipro, Dabur, Bandhan, Pidilite

Inward Outward 100% FDI permitted in Insurance Intermediaries Local Sourcing Norms eased for FDI in Single Brand Retail Sector India getting integrated with global value chain. India becoming part of global financial system Investments from Pension Funds, Sovereign Wealth Funds, top Insurance Cos.\ FPIs investments in debt securities issued by ReIT and InvIT permitted FPI Investment in stocks

One Nation One Grid Rs. 1 lakh crores investment planned in Infrastructure sector for next 5 years. Rs. 50 lakh crores investment in Railways next 12 years. Smooth connectivity through Rural Roads, Industrial Corridors, Freight Corridors, Bharatmala, Sagarmala, Udaan Scheme Power availability to states – developing gas grids, water grids, i-ways and regional airports.

Essentials for Development Main Item With Politics Principles Wealth Work Pleasure Conscience Commerce Morality Science Humanity Worship Sacrifice