Fiscal deficit target set below consolidation path, with revenue deficit reduced under interim budget measures.
The Interim Budget for 2014-15 sets estimated plan expenditure and non plan expenditure and fixes macrofiscal targets, budgeting for a fiscal deficit of 4.1% and a revenue deficit of 3%, while noting the current year's expected fiscal deficit of 4.6% and revenue deficit of 3.3%, and stating the 2014-15 deficit estimates remain below the fiscal consolidation path.

Education loan moratorium provides government takeover of outstanding interest for eligible loans; borrowers pay interest thereafter under subsidy framework.
A moratorium for education loans taken up to 31.3.2009 and outstanding on 31.12.2013 places liability for interest outstanding as on 31.12.2013 with the government, while borrowers must pay interest accruing after 1.1.2014. Funding is provided in the interim budget and will be transferred to a public sector bank to implement the relief, targeting borrowers who borrowed before the central interest subsidy scheme and addressing the substantial stock of student loan accounts and outstanding balances in public sector banks.

Lending to Minority Communities increased substantially over the decade, reflecting expanded access to bank accounts and credit.
Significant expansion in formal credit and account penetration occurred for Minority Communities between 2004-05 and 2013-14: lending to Minority Communities rose markedly over the decade and the number of bank accounts in districts with concentrations of minorities expanded materially, presented as aggregate indicators of increased access to banking and credit facilities for these communities.

Agriculture credit target increased; interest subvention continues reducing farm loan rates with prompt payment incentive.
The Union Government set an increased Agriculture credit target for 2014-15, directing banks to expand lending to meet the national objective and signalling that the current year's target will be exceeded. The existing interest subvention scheme will continue, providing a 2 percent subvention plus a 3 percent prompt repayment incentive that reduces the effective interest rate on eligible farm loans to 4 percent; a substantial amount has already been released under the scheme.

Production increase in currency materials strengthens self-sufficiency in security inks and supports corporatisation and efficiency goals.
SPMCIL reports year on year increases in production of bank notes, coins, security paper and security inks in the first ten months of fiscal 2014 15, sets higher annual production targets, notes reliance on existing (including ageing) machinery, and links output increases to self-sufficiency in security inks and corporatisation objectives to improve productivity and reduce counterfeit risk.

Wholesale Price Index shows monthly decline and easing annual inflation amid mixed movements across primary, fuel and manufactured groups.
The Wholesale Price Index (base 2004 05=100) for January 2014 recorded a slight monthly decline with a moderation in the annual inflation rate. Primary Articles fell led by Food Articles (fruits and vegetables), Fuel & Power rose driven by higher LPG, aviation turbine fuel and petrol, and Manufactured Products showed a modest rise with mixed subgroup movements. Annexed tables provide weights, index levels, month over month, build up and year on year rates and a six month trend for key items; the next monthly release date is announced.

Divestment of government equity: FPO oversubscribed, issue priced at band top and government stake reduced.
The Government divested a 10% equity stake in Engineers India Ltd through a Further Public Offering managed by appointed lead managers; the offer was oversubscribed, the issue price was fixed at the top of the price band, institutional demand composition at that price is reported, and the divestment reduced the government's holding while producing disinvestment proceeds based on the fixed price and offered shares.

Continuation of a sector development scheme extends funding and componentised support to boost natural rubber productivity and technology transfer.
Continuation of the Sustainable and Inclusive Development of Natural Rubber Sector scheme approved with a 12th Plan outlay of Rs.960 crore, allocated year wise across components including plantation development and extension; strengthening research; technology up gradation and market development; human resource development; infrastructure development; and statistical, information and governance services, to enhance production and productivity through area expansion, research, technology dissemination and extension services.

FTA review of India-ASEAN and bilateral CECA agreements progresses; no FTA proposal with Taiwan due to limited advantage.
A formal review has been commenced of the India-ASEAN Agreement on Trade in Goods (2009), the second review of the India-Singapore CECA (2005) is underway, and a Joint Committee will review implementation of the India-Malaysia CECA (2011); there is no active proposal for an FTA with Taiwan as it offers no clear advantage under present circumstances.

Movement of Natural Persons: agreement provisions aim to facilitate temporary mobility of professionals across ASEAN and India.
Approval was granted for signing and ratification of the ASEAN-India Agreement on Trade in Services, which includes an Annex on Movement of Natural Persons defining Business Visitors, Contractual Service Suppliers and Intra Corporate Transferees. Several ASEAN Member States have taken commitments in their schedules of specific commitments for some categories, creating a framework to facilitate the temporary movement of Indian professionals within ASEAN.

Public private partnership expansion enabling private and foreign investment in railway infrastructure and land monetisation.
Public private partnership arrangements are being advanced to mobilise private capital for railway infrastructure development, including rolling stock manufacturing, station modernisation, multi functional complexes, logistics parks, private freight terminals, liberalised wagon investment schemes and Dedicated Freight Corridors. A proposal to permit foreign direct investment in the rail sector is under consideration to supplement domestic funding, and land monetisation through the Rail Land Development Authority is being pursued to raise resources for rail projects.

Comprehensive Economic Partnership Agreement expands trade and investment ties, enabling tariff and regulatory facilitation and sectoral market access.
The Comprehensive Economic Partnership Agreement between India and Japan, in force since August 2011, is the principal legal framework expected to expand bilateral trade and investment by facilitating market access, increasing trade in goods and services, and promoting Japanese investment in National Investment and Manufacturing Zones and major industrial corridor projects; it is linked to regulatory adjustments such as the partner state's relaxation of a Maximum Residue Level for a shrimp preservative benefiting exporters.

Foreign direct investment liberalisation expands automatic-route ownership and eases sectoral caps to attract investor participation.
The policy permits Foreign Direct Investment up to full foreign ownership in most sectors under the automatic route, and recent revisions have amended sectoral caps and entry routes across areas such as petroleum and natural gas, exchanges and market infrastructure, asset reconstruction and credit information companies, tea plantations, single-brand retail and specified service sectors; the regime is maintained under ongoing review to enhance investor-friendliness.

Material wastage reduction: industry urged to boost capacity, infrastructure and technology to tackle diverse waste streams.
The Plan treats material wastage as a sectoral resource-management issue varying by solid, liquid and gas forms and across food processing, water management and construction. Industry responses focus on strengthened capacity utilization, investment in appropriate infrastructure, technology upgradation and innovation to reduce diverse waste streams, with these strategic corrective steps communicated by the Minister of State.

Financial performance review: revised freight and passenger earnings increased, operating ratio projected higher, fiscal discipline improves fund balance.
Revision of revenue and expenditure targets raises freight and passenger earning objectives while acknowledging a reduced average freight lead; expenditure pressures from fuel, recruitment, allowances and pensions have increased allocations though Ordinary Working Expenses were contained by monitoring. Dividend liability has risen with a higher dividend rate. The revised plan outlay and a higher projected Operating Ratio reflect these income and cost adjustments, and tightened fiscal discipline is said to result in an improved end of year fund balance.

Non-lapsable public development funds remain available for subsequent years under eligibility-based release and third-party monitoring oversight.
Independent third-party monitoring and performance audits have reviewed district implementation and fund utilisation under the Members of Parliament Local Area Development Scheme. Funds are released case-by-case on meeting prescribed eligibility criteria and subject to stipulated time-limits for sanction and completion. The Scheme treats funds as non-lapsable at central and district levels, so unspent balances, including interest, are carried forward and utilised in subsequent years.

Trade balance narrows as exports rise and imports fall, driven by lower non-oil imports and mixed oil trends.
India's foreign trade for January 2014 shows exports rising in Dollar and Rupee terms and cumulative April-January exports increasing year on year, while imports fell in January and cumulative imports declined in Dollar terms; oil imports were lower in January but slightly higher cumulatively, non oil imports declined, and the net effect was a reduced trade deficit for April-January 2013-14 compared with the prior year.

Support for organic coffee certification proposed under integrated development project to continue plantation development schemes.
Government policy proposes targeted support for organic coffee certification under the Integrated Coffee Development Project for the XII Plan, while production statistics for organic versus non-organic coffee are not separately maintained. The Coffee Board will continue and modify XI Plan measures during the XII Plan, centring on the Development Support Scheme-replantation assistance, water augmentation and quality up gradation, regional development in NER and NTAs, capacity building, welfare support and interest subsidy-alongside rainfall insurance for risk management and mechanization support for farm operations.

Budget preparation procedures consolidated: Hindi Budget Manual simplifies and unifies annual budget guidelines and operational processes.
Release of a Hindi Budget Manual consolidates and systematises the procedures and instructions governing preparation of the Union Annual Budget, bringing together executive instructions and guidelines into a single comprehensive reference that simplifies processes and sets out the detailed operational steps for budget formulation.

Capital gains relief for reinvestment in manufacturing units within national investment and manufacturing zones enabled under new policy.
Grant of in-principle approval for five National Investment and Manufacturing Zones requires state governments to acquire necessary land prior to investment. The National Manufacturing Policy offers capital gains relief for reinvestment of sale proceeds from plant and machinery into new plant and machinery within three years in the same or another NIMZ; rollover relief for individuals who reinvest residential sale proceeds into equity of new start-up manufacturing SMEs for plant and machinery; an expedited exit mechanism protecting labour interests; and third-party environmental inspection by designated agencies.