Budget 2014 FOCUS : Govt raises military spending, eases foreign investment limit in arms industry

India boosted defence spending by 12 percent in 2014-15 over the previous year in the budget. Finance Minister Arun Jaitley set the military budget at 2.29 trillion Indian rupees ($38.35 billion) for 2014-15, 50 billion rupees more than what the previous government agreed in an interim budget earlier this year. It further opened the domestic weapons industry to foreign investment to help rebuild the military and narrow the gap with China.India has been the world’s top arms buyer for the last three years, trying to replace an ageing Soviet-era military with modern weapons as a deterrent to a rising China, with which it fought a war more than half a century ago.


Budget 2014 TAX FOCUS : FM Rationalises Customs Duties

Basic customs duty on ships imported for breaking up has been rationalised to 2.5 percent.
Basic customs duty on semi-processed, processed diamonds is being rationalised at 2.5 percent.
To encourage manufacturing and export of garments, the Finance Minister has given concession on import of trimmings and other articles.

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