The change in personal income tax slabs, easing fiscal discipline, setting big target of divestment for FY21 with expected sale of stake in LIC via IPO were the key positives on the broader front.
Finance Minister Nirmala Sitharaman on February 1 presented the much-awaited Union Budget 2020 on February 1 but it failed to meet the high expectations considering the ongoing economic slowdown.
The change in personal income tax slabs, easing fiscal discipline, setting a big target of divestment for FY21 with the expected sale of a stake in LIC via IPO were the key positives on the broader front.
The government increased focus on rural development, raised customs duty on several products to boost Make in India for job creation and abolished dividend distribution tax for corporates.
Here are gainers and losers from the Budget 2020:
Government proposed raising fish production to 200 lakh tonnes by 2022-23.
Growing of algae, sea-weed and cage Culture will also be promoted, said the FM, adding government will involve youth in fishery extension through 3477 SagarMitras and 500 Fish Farmer Producer Organisations.
"We hope to raise fishery exports to Rs 1 lakh crore by 2024-25," she said.
Positive for companies manufacturing food for fishes - Avanti Feeds, Godrej Agrovet
The government raised customs duty on footwear to 35 percent from 25 percent, and footwear parts to 20 percent from 15 percent.
Positive for footwear makers Bata India, Relaxo Footwears, Liberty Shoes, Khadim India etc
FM said as air traffic has been growing rapidly in the country compared to the global average, one hundred more airports would be developed by 2024 to support Udaan scheme.
"It is expected that the air fleet number shall go up from the present 600 to 1200 during this time. I propose to provide about Rs 1.70 lakh crore for transport Infrastructure in 2020-21," she added.
Positive for GMR Infrastructure, GVK Power etc.
FM said a National Logistics Policy would be released soon. It will create a single-window e-logistics market and focus on the generation of employment, skills and making MSMEs competitive.
Positive for Allcargo Logistics, Gati, Blue Dart, Transport Corporation of India etc.
FM said The New Education Policy would be announced soon, and steps would be taken to enable sourcing External Commercial Borrowings and FDI so as to able to deliver higher quality education.
The government proposes to start a programme whereby urban local bodies across the country would provide internship opportunities to fresh engineers for a period up to one year, she added.
In order to provide quality education to students of deprived section of the society as well as those who do not have access to higher education, it is proposed to start degree level full-fledged online education programme.
The government proposed to provide about Rs 99,300 crore for the education sector in 2020-21 and about Rs 3,000 crore for skill development.
Education stocks like NIIT, Career Point etc could be in focus
The government proposed to expand the national gas grid from the present 16,200 km to 27,000 km.
To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions, she said.
Positive for Petronet LNG, GAIL etc
The government proposed to extend the date of approval of affordable housing projects for availing tax holiday on the profit earned by developers by one more year.
Finance Minister said the government extended an additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.
Positive for realty companies
Finance Minister said the government allocated Rs 35,600 crore for the nutritional related programme. "It is proposed to set up a viability gap funding window for setting up hospitals in the PPP model."
"Presently, under PM Jan Arogya Yojana (PMJAY), there are more than 20,000 empanelled hospitals. We need more in Tier-2 and Tier-3 cities for poorer people under this scheme," she said.
The government provided for the health sector about Rs 69,000 crore that is inclusive of Rs 6,400 crore for Prime Minister Jan Arogya Yojana (PMJAY) and total allocation for Swachh Bharat Mission is about Rs 12,300 crore in 2020-21.
Positive for hospital companies
Government is committed to doubling farmer income by 2022, proposing a 16 action point plan to aid the farmers. The government also made changes in the personal income tax structure.
Positive for Dabur India, HUL, Marico, Asian Paints etc.
FM said aiming to provide piped water supply to all households, Prime Minister announced from the Red Fort the Jal Jeevan Mission.
Government has approved Rs 3.60 lakh crore for this Mission. "This scheme also places emphasis on augmenting local water sources, recharging existing sources and will promote water harvesting and de-salination. Cities with over a million population will be encouraged to meeting this objective during the current year itself," she said.
During the year 2020-21, the scheme would be provided budget of Rs 11,500 crore, she added.
Positive for Astral Poly, Finolex Industries, Prince Pipes, Supreme Industries etc.
The government increased the deposit insurance cover to Rs 5 lakh from Rs 1 lakh earlier.
The government proposed to remove the Dividend Distribution Tax and adopted the classical system of dividend taxation under which the companies would not be required to pay DDT.
Positive for TCS, Wipro which pay large dividends.
As a revenue measure, government proposed to raise excise duty, by way of National Calamity Contingent Duty on cigarettes and other tobacco products.
Negative for ITC, VST Industries, Godfrey Phillips
Oil Marketing Companies
The government reduced custom duty on VLFO to NIL from 10 percent earlier and cut custom duty on Calcined Petroleum Coke - slashed to 7.5 percent from 10 percent.
Negative for IOC, HPCL, BPCL.
The government hiked customs duty on refrigerator/ACs compressors from 10 percent to 12.5 percent.
Negative for Blue Star, Havells, Voltas etc.
Government proposed to bring a new and simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions.Negative for insurance companies - HDFC Life, SBI Life, ICICI Prudential, ICICI Lombard, HDFC AMC, Nippon Life etc