Did Budget Make It Easier to Do Business in India?

Fri, 3 Feb Pre-Open

   Previous Close   

   09:30 am   

   11:30 am   

   01:30 pm   

   Closing   

India is one of the world's toughest places to do business. It is ranked 130^th out of 190 countries in the World Bank Group's annual report on ease of doing business for 2017. This is an improvement of just one place over the last year.

The issue has struck a nerve among Indian businesses, and meant disappointment for the Modi government. So to prop-up business activity, the government has set itself a target to break into the top 50 positions.

As far as the budget announcements are concerned, the government seems all ready. It has introduced many measures in the Union Budget 2017-18 that propose to make doing business in India easier. Let's see what some of these are....

First, Mr. Jaitley amalgamated the existing labour laws into four codes: wages, social security and welfare, industrial relations, and safety and working conditions. Current labour laws are rigid and inhibit entrepreneurship, so this could bring simplicity and rationality in these laws.

Second, the finance minister proposed a roadmap for scrapping the Foreign Investment Promotion Board (FIPB) in an attempt to reduce bureaucracy. This move will promote more foreign investments into India and fuel the capital needs for Indian companies.

Third, the budget reduced the tax burden on medium, small and micro enterprises (MSME). The government reduced the tax rate for small companies - having turnover of up to Rs 500 million - to 25% from 30.26%. It has therefore brought MSMEs in line with large companies that enjoy greater tax exemptions. The move will also provide the much needed relief to MSME businesses that have been hit by demonetisation.

The budget has also increased the threshold limit for audit of businesses who opt for presumptive income scheme from Rs 10 to 20 million, and for maintenance of books for individuals and HUF.

The budget proposed further liberalization of the FDI policy. If this goes through, there will be more businesses willing to invest in India.

Apart from the above major changes, the budget brought relief for domestic transfer pricing provisions, foreign portfolio investors (FPIs), scrutiny assessment deadlines, etc.

All in all, the budget seems to have positive policies in store to promote the ease of doing business in India. However, implementation is key, so let's see how these proposals will turn out in action.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers