Budget Highlights

FOREIGN DIRECT INVESTMENT

16.  The policy of the NDA Government is to promote Foreign Direct
Investment (FDI) selectively in sectors where it helps the larger interest of the
Indian Economy. FDI in several sectors is an additionality of resource which
helps in promoting domestic manufacture and job creation. India today needs a
boost for job creation. Our manufacturing sector in particular needs a push for
job creation.

17. India today is the largest buyer of Defence equipment in the world. Our
domestic manufacturing capacities are still at a nascent stage. We are buying
substantial part of our Defence requirements directly from foreign players.
Companies controlled by foreign governments and foreign private sector are
supplying our Defence requirements to us at a considerable outflow of foreign
exchange. Currently we permit 26 per cent FDI in Defence manufacturing. The
composite cap of foreign exchange is being raised to 49 per cent with full Indian
management and control through the FIPB route.
18. The Insurance sector is investment starved. Several segments of the
Insurance sector need an expansion. The composite cap in the Insurance sector
is proposed to be increased up to 49 per cent from the current level of 26 per
cent, with full Indian management and control, through the FIPB route.

19. To encourage development of Smart Cities, which will also provide
habitation for the neo-middle class, requirement of the built up area and capital
conditions for FDI is being reduced from 50,000 square metres to 20,000 square
metres and from USD 10 million to USD 5 million respectively with a three year
post completion lock in.

Smart Cities
24. As the fruits of development reach an increasingly large number of people,
the pace of migration from the rural areas to the cities is increasing. A neo middle
class is emerging which has the aspiration of better living standards. Unless,
new cities are developed to accommodate the burgeoning number of people, the
existing cities would soon become unlivable. The Prime Minister has a vision of
developing ‘one hundred Smart Cities’, as satellite towns of larger cities and by
modernizing the existing mid-sized cities. To provide the necessary focus to this
critical activity, I have provided a sum of `7,060 crore in the current fiscal.

e-Visa

25. Tourism is one of the larger job creators globally. Many economies world
over are supported by tourism. In order to give a major boost to tourism in India,
the facility of Electronic Travel Authorization (e-Visa) would be introduced in a7
phased manner at nine airports in India where necessary infrastructure would be
put in place within the next six months. The countries to which the Electronic
Travel authorisation facility would be extended would be identified in a phased
manner. This would further facilitate the visa on arrival facility.

Skill India
28. A national multi-skill programme called Skill India is proposed to be
launched. It would skill the youth with an emphasis on employability and
entrepreneur skills. It will also provide training and support for traditional
professions like welders, carpenters, cobblers, masons, blacksmiths, weavers
etc. Convergence of various schemes to attain this objective is also proposed.

Pradhan Mantri Krishi Sinchayee Yojana

29. Bulk of our farm lands are rain fed and dependent on monsoons. Therefore,
there is a need to provide assured irrigation to mitigate risk. To improve access
to irrigation we propose to initiate the scheme “Pradhan Mantri Krishi Sinchayee
Yojana”. I propose to set aside a sum of ` 1,000 crore for this purpose.

Swatchh Bharat Abhiyan
30. The need for sanitation is of utmost importance. Although the Central
Government is providing resources within its means, the task of total sanitation
cannot be achieved without the support of all. The Government intends to cover
every household by total sanitation by the year 2019, the 150th year of the Birth
anniversary of Mahatma Gandhi through Swatchh Bharat Abhiyan.

Shyama Prasad Mukherji Rurban Mission
31. Gujarat has demonstrated successfully the Rurban development model
of urbanization of the rural areas, through which people living in the rural areas
can get efficient civic infrastructure and associate services. Shyama Prasad
Mukherji Rurban Mission will be launched to deliver integrated project based
infrastructure in the rural areas, which will also include development of economic
activities and skill development. The preferred mode of delivery would be through
PPPs while using various scheme funds for financing.

Deendayal Upadhyaya Gram Jyoti Yojana
32. Power is a vital input for economic growth and the Government is
committed to providing 24x7 uninterrupted power supply to all homes. “Deen
Dayal Upadhyaya Gram Jyoti Yojana” for feeder separation will be launched to
augment power supply to the rural areas and for strengthening sub-transmission
and distribution systems. I propose to set aside a sum of ` 500 crore for this
purpose.

Government is fully committed to the social security and welfare of
employees serving in the organized sector. The Government is notifying minimum
pension of ` 1,000 per month to all subscriber members of EP Scheme and has
made an initial provision of ` 250 crore in the current financial year to meet the
expenditure. Further, increase in mandatory wage ceiling of subscription to EPS
from ` 6,500 to ` 15,000 has been made and a provision of ` 250 crore has been
provided in the current budget. For the convenience of the subscribers, EPFO
will launch the “Uniform Account Number” Service for contributing members
to facilitate portability of Provident Fund accounts.

Empowerment of the Differently Abled Persons

Government will make all out efforts to create a more inclusive society
for Persons with Disabilities to enable them to enjoy equal opportunities to lead
an empowered life with dignity. I propose to extend the scheme for Assistance to
Disabled Persons for purchase/fitting of Aids and Appliances (ADIP) to include
contemporary aids and assistive devices. It is also proposed to establish National
level institutes for Universal Inclusive Design and Mental Health Rehabilitation
and also a Centre for Disability Sports.

Incentives for the Visually Challenged
42. The Braille Presses in the Government and private sector are not able to
meet the demand of Braille Text books for the visually impaired students. It is
proposed to provide assistance to the State Governments to establish fifteen new
Braille Presses and modernize ten existing Braille Presses in the current financial
year. Government will also print currency notes with Braille like signs to assist
the visibly challenged persons.


Beti Bachao, Beti Padhao Yojana
44. It is a shame that while the country has emerged as a major player amongst
the emerging market economies, the apathy towards girl child is still quite rampant
in many parts of the country. Therefore I propose to launch Beti Bachao, Beti
Padhao Yojana which will be a focused scheme which would help in generating
awareness and also help in improving the efficiency of delivery of welfare services
meant for women. I propose to set aside a sum of ` 100 crore for this.

Rural Development

Pradhan Mantri Gram Sadak Yojana

46. Pradhan Mantri Gram Sadak Yojana initiated during the NDA-I under
the stewardship of Prime Minister Atal Behari Vajpayee has had a massive impact
in improvement of access for Rural population. It is time to reaffirm our
commitment to a better and more energetic PMGSY under the dynamic leadership
of Prime Minister Shri Narendra Modi. I propose to provide a sum of ` 14,389 
crore.

Rural Housing
49. The Rural Housing Scheme has benefited a large percentage of rural
population who have availed credit through Rural Housing Fund (RHF).
Accordingly, I propose to increase the allocations for the year 2014-15 to ` 8,000
crore for National Housing Bank (NHB) with a view to expand and continue to
support Rural Housing in the country.

Watershed Development
50. To give an added impetus to watershed development in the country,
I propose to start a new programme called “Neeranchal” with an initial outlay of
` 2,142 crores in the current financial year.

Safe Drinking Water
52. Many of our drinking water sources have excess impurities like flouride,
arsenic and manmade contaminations due to untreated sewage, industrial effluents
and leaching of pesticides and fertilizers. It is proposed to earmark ` 3,600 crore
under National Rural Drinking Water Programme for providing safe drinking
water in approximately 20,000 habitations affected with arsenic, fluoride, heavy/
toxic elements, pesticides/ fertilizers through community water purification plants
in next 3 years.