S.No

Priority

ESG Action Plan

1

Inclusive Human Resource Development and Social Justice

The states in the Eastern part of the country are rich in endowments and have strong cultural traditions. Government will formulate a plan, Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.  This will cover human resource development, infrastructure, and generation of economic opportunities to make the region an engine to attain Viksit Bharat.

2

Inclusive Human Resource Development and Social Justice

On the Amritsar Kolkata Industrial Corridor, Government will support development of an industrial node at Gaya. This corridor will catalyze industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy. This model shall showcase “Vikas bhi Virasat bhi” in our growth trajectory.

3

Inclusive Human Resource Development and Social Justice

Government will also support development of road connectivity projects, namely (1) Patna-Purnea Expressway, (2) Buxar-Bhagalpur Expressway, (3) Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and (4) additional 2-lane bridge over river Ganga at Buxar at a total cost of ` 26,000 crore. Power projects, including setting up of a new 2400 MW power plant at Pirpainti, will be taken up at a cost of ` 21,400 crore.  New airports, medical colleges and sports infrastructure in Bihar will be constructed. 

4

Inclusive Human Resource Development and Social Justice

Government will provide an additional allocation to support capital investments. The requests of Bihar Government for external assistance from multilateral development banks will be expedited.

5

Inclusive Human Resource Development and Social Justice

Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act.  Recognizing the state’s need for a capital, government will facilitate special financial support through multilateral development agencies. In the current financial year ` 15,000 crore will be arranged, with additional amounts in future years.

6

Inclusive Human Resource Development and Social Justice

Under the Act (Andhra Pradesh Reorganisation), for promoting industrial development, government will provide funds for essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor. 

7

Inclusive Human Resource Development and Social Justice

Government will provide Grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra

8

Inclusive Human Resource Development and Social Justice

Government will set up more than 100 branches of India Post Payment Bank in the Northeast region to expand the banking services.

9

Inclusive Human Resource Development and Social Justice

Government has made a provision of ` 2.66 lakh crore for rural development including rural infrastructure.   

10

Manufacturing & Services

Government has formulated a package covering financing, regulatory changes and technology support for MSMEs to help them grow and compete globally, as mentioned in the interim budget.

11

Manufacturing & Services

For facilitating term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme will be introduced by the government. The scheme will operate on pooling of credit risks of such MSMEs. A separately constituted self-financing guarantee fund will provide, to each applicant, guarantee cover up to ` 100 crore, while the loan amount may be larger. The borrower will have to provide an upfront guarantee fee and an annual guarantee fee on the reducing loan balance.

12

Manufacturing & Services

Public sector banks will build their in-house capability to assess MSMEs for credit, instead of relying on external assessment. They will also take a lead in developing or getting developed a new credit assessment model, based on the scoring of digital footprints of MSMEs in the economy. This is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. That will also cover MSMEs without a formal accounting system.

13

Manufacturing & Services

Government has launched a new mechanism for facilitating continuation of bank credit to MSMEs during their stress period. While being in the ‘special mention account’ (SMA) stage for reasons beyond their control, MSMEs need credit to continue their business and to avoid getting into the NPA stage. Credit availability will be supported through a guarantee from a government promoted fund. 

14

Manufacturing & Services

Government has increased the limit of Mudra loans to ₹ 20 lakh from the current ₹ 10 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.

15

Manufacturing & Services

For facilitating MSMEs to unlock their working capital by converting their trade receivables into cash, government has reduced the turnover threshold of buyers for mandatory onboarding on the TReDS platform from ` 500 crore to ` 250 crore. This measure will bring 22 more CPSEs and 7000 more companies onto the platform. Medium enterprises are also included in the scope of the suppliers.

16

Manufacturing & Services

SIDBI will open new branches to expand its reach to serve all major MSME clusters within 3 years and provide direct credit to them. With the opening of 24 such branches this year, the service coverage will expand to 168 out of 242 major clusters. 

17

Manufacturing & Services

To enable MSMEs and traditional artisans to sell their products in international markets, E-Commerce Export Hubs will be set up in public-private-partnership (PPP) mode by the government. These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export related services under one roof.

18

Manufacturing & Services

Our government will facilitate development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning schemes. 

Twelve industrial parks under the National Industrial Corridor Development Programme are planned by government to be set up.

19

Manufacturing & Services

Our government will launch the auction of the first tranche of offshore blocks for mining, building on the exploration already carried out. 

20

Manufacturing & Services

Government is set to develop DPI applications at population scale for productivity gains, business opportunities, and innovation by the private sector. These are planned in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance.

21

Manufacturing & Services

An Integrated Technology Platform will be set up by government, for improving the outcomes under the Insolvency and Bankruptcy Code (IBC) and achieving consistency, transparency, timely processing and better oversight for all stakeholders.

22

Manufacturing & Services

The services of the Centre for Processing Accelerated Corporate Exit (C-PACE) are set to be extended for voluntary closure of LLPs to reduce the closure time.

23

Manufacturing & Services

Appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up insolvency resolution. Additional tribunals will be established. Out of those, some will be notified to decide cases exclusively under the Companies Act. 

24

Manufacturing & Services

Government will take steps for reforming and strengthening debt recovery tribunals and will establish additional tribunals to speed up recovery.

25

Urban Development

Working with states, our government will facilitate development of ‘Cities as Growth Hubs’. This will be achieved through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes.

26

Urban Development

For creative brownfield redevelopment of existing cities with a transformative impact, our government will formulate a framework for enabling policies, market-based mechanisms and regulation.

27

Urban Development

Transit Oriented Development plans for 14 large cities with a population above 30 lakhs will be formulated by government, along with an implementation and financing strategy. 

28

Urban Development

Government will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes.

29

Energy Security

Government has completed development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants with much higher efficiency. A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant using AUSC technology. The government will provide the required fiscal support. Moving forward, development of indigenous capacity for the production of high-grade steel and other advanced metallurgy materials for these plants will result in strong spin-off benefits for the economy.

30

Infrastructure

Significant investment the Central Government has made over the years in building and improving infrastructure has had a strong multiplier effect on the economy. Government will endeavour to maintain strong fiscal support for infrastructure over the next 5 years, in conjunction with imperatives of other priorities and fiscal consolidation. This year, government has provided ` 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP.

31

Infrastructure

Government will encourage states to provide support of similar scale for infrastructure, subject to their development priorities. A provision of ` 1.5 lakh crore for long-term interest free loans has been made this year also to support the states in their resource allocation.

32

Infrastructure

Government is set to promote Investment in infrastructure by private sector through viability gap funding and enabling policies and regulations. A market-based financing framework will be brought out by government

33

Infrastructure

Phase IV of PMGSY will be launched by government to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.

34

Infrastructure

Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar are of immense spiritual significance. Governments is planning comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor, modelled on the successful Kashi Vishwanath Temple Corridor, to transform them into world class pilgrim and tourist destinations.

35

Infrastructure

Rajgir holds immense religious significance for Hindus, Buddhists and Jains.  The 20th Tirthankara Munisuvrata temple in the Jain Temple complex is ancient. The Saptharishi or the 7 hotsprings form a warm water Brahmakund that is sacred. Government plans to undertake a comprehensive development initiative for Rajgir.

36

Infrastructure

Our government will support the development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature. 

37

Infrastructure

Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches make it an ultimate tourism destination. Our government will provide assistance for their development.

38

Next Generation Reforms

Government will formulate an Economic Policy Framework to delineate the overarching approach to economic development and set the scope of the next generation of reforms for facilitating employment opportunities and sustaining high growth.

39

Next Generation Reforms

 For promoting competitive federalism and incentivizing states for faster implementation of reforms, government has earmarked a significant part of the 50-year interest-free loan.

40

Next Generation Reforms

Working with the states, government will initiate the following reforms. 

Land-related reforms and actions, both in rural and urban areas, will cover (1) land administration, planning and management, and (2) urban planning, usage and building bylaws. These will be incentivized for completion within the next 3 years through appropriate fiscal support.

Rural land related actions will include (1) assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, (2) digitization of cadastral maps, (3) survey of map sub-divisions as per current ownership, (4) establishment of land registry, and (5) linking to the farmers registry. These actions will also facilitate credit flow and other agricultural services.

41

Next Generation Reforms

Government aims to digitize land records in Urban areas with GIS mapping. For that, government will establish an IT based system for property record administration, updating, and tax administration. These will also facilitate improving the financial position of urban local bodies. 

42

Next Generation Reforms

Shram Suvidha and Samadhan portals will be revamped by government to enhance ease of compliance for industry and trade. 

43

Next Generation Reforms

For meeting financing needs of the economy, our government will bring out a financial sector vision and strategy document to prepare the sector in terms of size, capacity and skills. This will set the agenda for the next 5 years and guide the work of the government, regulators, financial institutions and market participants

44

Next Generation Reforms

Governemtn will seek the required legislative approval for providing an efficient and flexible mode for financing leasing of aircrafts and ships, and pooled funds of private equity through a ‘variable company structure’.     

45

Next Generation Reforms

The rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified by government to (1) facilitate foreign direct investments, (2) nudge prioritization, and (3) promote opportunities for using Indian Rupee as a currency for overseas investments.

46

Next Generation Reforms

For enhancing ‘Ease of Doing Business’, Government is working on the Jan Vishwas Bill 2.0. Further, states will be incentivized by government for implementation of their Business Reforms Action Plans and digitalization.

47

Next Generation Reforms

For improving data governance, collection, processing and management of data and statistics, different sectoral data bases, including those established under the Digital India mission, will be utilized with active use of technology tools, by the government.    

48

Next Generation Reforms

Our government will initiate and incentivize reforms for (1) improving productivity of factors of production, and (2) facilitating markets and sectors to become more efficient. These reforms will cover all factors of production, namely land, labour, capital and entrepreneurship, and technology as an enabler of improving total factor productivity and bridging inequality.

49

Next Generation Reforms

Our government will facilitate the provision of a wide array of services to labour, including those for employment and skilling. A comprehensive integration of e-shram portal with other portals will facilitate such one-stop solution. Open architecture databases for the rapidly changing labour market, skill requirements and available job roles, and a mechanism to connect job-aspirants with potential employers and skill providers will be covered in these services.

50

Next Generation Reforms

Government has successfully used technology for improving productivity and bridging inequality in our economy during the past 10 years. Public investment in digital infrastructure and innovations by the private sector have helped in improving access of all citizens, particularly the common people, to market resources, education, health and services.  Government will step up adoption of technology towards digitalization of the economy. 

51

Direct Taxes

Government plans to do comprehensive review of the Income-tax Act, 1961. The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months.

52

Direct Taxes

Efforts are being made by the government in the Finance Bill for simplifying the tax regime for charities, TDS rate structure, provisions for reassessment and search provisions and capital gains taxation.

53

Direct Taxes

Government is set to merge the two tax exemption regimes for charities into one.. The 5 per cent TDS rate on many payments is being merged into the 2 per cent TDS rate and the 20 per cent TDS rate on repurchase of units by mutual funds or UTI is being withdrawn. TDS rate on e-commerce operators is set to be reduced from one to 0.1 per cent. Moreover, credit of TCS is set to be given in the TDS to be deducted on salary. Further, government has decriminalized delay for payment of TDS up to the due date of filing statement for the same. Government also plan to provide a standard operating procedure for TDS defaults and simplify and rationalise the compounding guidelines for such defaults.

54

Direct Taxes

Government plans to simplify the provisions for reopening and reassessment. An assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income is ₹ 50 lakh or more,  up to a maximum period of five years from the end of the assessment year. Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed.  This will reduce tax-uncertainty and disputes.

55

Direct Taxes

Capital gains taxation is also set to be hugely simplified by government:

(a) Short term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and all

non-financial assets shall continue to attract the applicable tax rate.

(b)Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, government has increased the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year.

56

Direct Taxes

Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.

57

Direct Taxes

Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, will be taxed on capital gains at applicable rates set by government.

58

Direct Taxes

All the major tax payer services under GST and most services under Customs and Income Tax have been digitalised by government. All remaining services of Customs and Income Tax including rectification and order giving effect to appellate orders will be digitalized and made paper-less over the next two years.

59

Direct Taxes

Government plans to engage highest attention to reduce pendency of appeals.

To dispose off the backlog of first appeals, government has planned to deploy more officers  to hear and decide such appeals, especially those with large tax effect.

60

Direct Taxes

For resolution of certain income tax disputes pending in appeal, government launched Vivad Se Vishwas Scheme, 2024.

61

Direct Taxes

Further, government increased monetary limits for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to ₹  60 lakh, ₹ 2 crore and ₹ 5 crore respectively.

62

Direct Taxes

With a view to reduce litigation and provide certainty in international taxation, government will expand the scope of safe harbour rules and make them more attractive. Government will also streamline the transfer pricing assessment procedure.

63

Direct Taxes

First of all, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation, government has abolished the so-called angel tax for all classes of investors.

64

Direct Taxes

Second, there is tremendous potential for cruise tourism in India. To give a fillip to this employment generating industry, government will impose a simpler tax regime for foreign shipping companies operating domestic cruises in the country.

65

Direct Taxes

Third, India is a world leader in the diamond cutting and polishing industry, which employs a large number of skilled workers. To further promote the development of this sector, government would provide for safe harbour rates for foreign mining companies selling raw diamonds in the country.

66

Direct Taxes

Fourth, to attract foreign capital for our development needs,

Government has reduced the corporate tax rate on foreign companies from 40 to 35 per cent.

67

Direct Taxes

To deepen the tax base, Security Transactions Tax on futures and options of securities is increased to 0.02 per cent and 0.1 per cent respectively. For reasons of equity, government will tax income received on buy back of shares in the hands of the recipient.

68

Direct Taxes

To improve social security benefits, deduction of expenditure by employers towards NPS is increased from 10 to 14 per cent of the employee’s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income of  employees in private sector, public sector banks and undertakings, opting for the new tax regime, is to be provided.

69

Direct Taxes

Indian professionals working in multinationals get ESOPs and invest in social security schemes and other movable assets abroad. Non-reporting of such small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to ₹ 20 lakh is now to be de-penalised by government.

70

Direct Taxes

Other major actions by the Government in the Finance Bill relate to:

• Withdrawal of equalization levy of 2 per cent;

• Expansion of tax benefits to certain funds and entities in IFSCs; and

• immunity from penalty and prosecution to benamidar on full and true disclosure so as to improve conviction under the Benami Transactions (Prohibition) Act, 1988.

71

Indirect Taxes

GST has decreased tax incidence on the common man; reduced compliance burden and logistics cost for trade and industry; and enhanced revenues of the central and state governments. It is a success of vast proportions. To multiply the benefits of GST, government will strive to further simplify and rationalise the tax structure and endeavour to expand it to the remaining sectors.

72

Indirect Taxes

In Budget 2022-23, government reduced the number of customs duty rates.

Government is set to undertake a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes.

73

Indirect Taxes

India’s seafood exports in the last financial year touched an all-time high of more than ₹ 60,000 crore. Frozen shrimp accounted for about

two-thirds of these exports. To  enhance their competitiveness, government has reduced BCD on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent. Government also exempted customs duty on various inputs for manufacture of shrimp and fish feed.

74

Indirect Taxes

Similarly, to enhance the competitiveness of exports in the leather and textile sectors, government isset to reduce BCD  on real down filling material from duck or goose. Government is also making additions to the list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export.

75

Indirect Taxes

To  rectify inversion in duty, government has reduced BCD, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent.

76

Indirect Taxes

Furthermore, the export duty structure on raw hides, skins and leather is set to be simplified and rationalized by government

77

Indirect Taxes

To enhance domestic value addition in gold and precious metal jewellery in the country, government reduced customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent

78

Indirect Taxes

Steel and copper are important raw materials. To reduce their cost of production,  government removed the BCD on ferro nickel and blister copper. Government is also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap.

79

Indirect Taxes

To increase value addition in the domestic electronics industry,

Government has removed BCD, subject to conditions, on oxygen free copper for manufacture of resistors. Government also exempted certain parts for manufacture of connectors.

80

Indirect Taxes

To support existing and new capacities in the pipeline, government has increased the BCD on ammonium nitrate  from 7.5 to 10 per cent.

81

Indirect Taxes

To incentivise domestic manufacturing, government has increased the BCD  from 10 to 15 per cent on PCBA of specified telecom equipment.

82

Indirect Taxes

To promote domestic aviation and boat & ship MRO, government plans to  extend the period for  export of goods imported for repairs from six months to one year. In the same vein, government is planning to extend the time-limit for re-import of goods for repairs under warranty from three to five years.

83

 Productivity and resilience in Agriculture

Our government will undertake a comprehensive review of the agriculture research setup to bring the focus on raising productivity and developing climate resilient varieties.  Funding will be provided in challenge mode, including to the private sector. Domain experts both from the government and outside will oversee the conduct of such research. 

84

 Productivity and resilience in Agriculture

For achieving self-sufficiency in pulses and oilseeds, government will strengthen their production, storage and marketing. As announced in the interim budget, a strategy is being put in place to achieve ‘atmanirbharta’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. 

85

 Productivity and resilience in Agriculture

Buoyed by the success of the pilot project, our government, in partnership with the states, will facilitate the implementation of the Digital Public Infrastructure (DPI) in agriculture for coverage of farmers and their lands in 3 years. During this year, digital crop survey for Kharif using the DPI will be taken up in 400 districts. The details of 6 crore farmers and their lands will be brought into the farmer and land registries. Further, the issuance of Jan Samarth based Kisan Credit Cards will be enabled in 5 states.

86

 Productivity and resilience in Agriculture

Financial support for setting up a network of Nucleus Breeding Centres for Shrimp Broodstocks will be provided by government. Financing for shrimp farming, processing and export will be facilitated through NABARD. 

87

 Productivity and resilience in Agriculture

Our government will bring out a National Cooperation Policy for systematic, orderly and all-round development of the cooperative sector. Fast-tracking growth of rural economy and generation of employment opportunities on a large scale will be the policy goal.

88

 Productivity and resilience in Agriculture

This year, government has provision of ` 1.52 lakh crore for agriculture and allied sector.   

89

Innovation, Research & Development

Government will operationalize the Anusandhan National Research Fund for basic research and prototype development. Further, we will set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of ` 1 lakh crore in line with the announcement in the interim budget.

90

Innovation, Research & Development

With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of ` 1,000 crore will be set up.