Amendments to banking and insurance laws to be moved in Parliament following Standing Committee recommendations.
Amendments to the Banking Laws (Amendment) Bill, the Insurance Laws (Amendment) Bill and the Pension Fund Regulatory and Development Authority Bill will be moved in the current parliamentary session, the Finance Minister announced during the Budget speech, implementing recommendations of the Standing Committee on Finance.

Pricing and investment policy for urea aims to boost domestic production and reduce import dependence, encouraging SSP use.
Government initiatives target finalisation of pricing and investment policies for urea to strengthen production and reduce import reliance. Measures include promotion of Single Super Phosphate (SSP) for P&K fertilizer through expanded extension work and an investment policy aimed at increasing domestic manufacture to achieve self-sufficiency within a multi-year horizon.

Infrastructure financing secures international loan support to advance industrial corridor development under a central assistance framework.
Japan has committed external loan funding to support development of the Delhi-Mumbai Industrial Corridor, complementing earlier central assistance approved by the Government of India for a multi year period to accelerate works planned alongside the Western Dedicated Rail Freight Corridor.

Customs duty reductions on imported plant and machinery for iron ore plants broaden targeted tariff relief for manufacturing sectors.
The Union Budget 2012-13 revises tariff treatment: basic customs duty on plant and machinery for iron ore pellet and beneficiation plants is reduced to 2.5 percent; coating material for electrical steel reduced to 5 percent; duties on nickel ores and nickel compounds set to nil. Basic duty on non-alloy flat rolled steel is increased to 7.5 percent and export duty on chromium ore raised to an ad valorem rate. Full exemptions from basic customs duty are proposed for automatic shuttle-less looms, automatic silk reeling and processing machinery and their parts, waste paper, LCD and LED TV panels, and memory card parts for mobile phones.

Procurement set aside for MSEs requires ministries and public enterprises to allocate a defined share of annual purchases to MSEs.
A national venture fund is set up to increase equity availability for Micro, Small and Medium Enterprises and to complement new SME exchanges that expand access to finance. Central ministries and central public sector enterprises are required to allocate a specified minimum share of annual procurement to MSEs, with a sub allocation reserved for enterprises owned by Scheduled Caste and Scheduled Tribe entrepreneurs to promote market access.

Exemption from excise duty expands to specified life saving drugs, alongside reduced customs duties for nutrition inputs.
Specified life saving drugs and vaccines are placed under a concessional basic customs duty regime and granted full exemption from excise duty and countervailing duty. Tariff reductions were also announced for soya protein concentrate and isolated soya protein, combined reductions in customs and excise duties for iodine, and a lowered basic customs duty for probiotics, aimed at reducing tax-incorporated costs for health and nutrition inputs.

Concessions for energy saving devices extended to solar thermal equipment and hybrid vehicle components with duty relief measures.
Concessions and exemptions are proposed to encourage energy saving devices and equipment for solar thermal projects, including full exemption from basic customs duty for a coating chemical for compact fluorescent lamps and reduced excise duty of 6% for LED lamps. Concessions from basic customs duty and special CVD are extended to items imported for manufacture of hybrid or electric vehicles and battery packs, with specified hybrid vehicle parts receiving full exemption from basic customs duty and special CVD and a concessional excise duty/CVD of 6%.

External Commercial Borrowings allowed to partly finance rupee debt of existing power plants, coupled with fuel supply safeguards.
Permission is proposed for External Commercial Borrowings (ECB) to partly finance rupee debt of existing power plants. An inter-ministerial group will periodically review allocated coal mines and may recommend de-allocations. Coal India Limited is advised to sign fuel supply agreements with power plants that have long-term power purchase agreements and meet the commissioning deadline, tying fuel supply to PPA-backed, on-schedule projects.

Handloom loan waiver announced with complementary mega cluster development, powerloom cluster, geo-textile pilot and weavers' support.
The government announced a combined relief and development package for the handloom and textile sector comprising a financial allocation for waiver of handloom loans and cooperative liabilities, establishment of two major handloom clusters in specified districts of Andhra Pradesh and Jharkhand, a powerloom mega cluster in Ichalkaranji, and a geo-textile pilot scheme in the North-East; additionally, new Weavers' Service Centres will be set up in Mizoram, Nagaland and Jharkhand to provide technical assistance to vulnerable weavers.

Excise duty increase on demerit goods raises taxes on tobacco, pan masala and related products nationwide.
The Budget raises central excise levies on specific tobacco and tobacco-related 'demerit' products, including certain cigarettes, hand-rolled bidis, pan masala, gutka, chewing tobacco, unmanufactured tobacco and zarda scented tobacco, to increase fiscal resources. It also enhances the cess on crude petroleum produced in India under the relevant industry development statute and increases the basic customs duty on completely built units of large cars/MUVs/SUVs above the prescribed engine-capacity threshold to a higher ad valorem rate.

Indirect tax rationalisation streamlines excise and customs rules, extends jewellery levy with artisan safeguards and increases duty free allowances.
Rationalisation of indirect tax measures adjusts excise and customs treatment for specified goods while simplifying compliance and protecting small-scale producers. Key reforms: uniform excise for packaged cement, extension of a branded jewellery levy to unbranded items with safeguards for artisans, exemption for branded silver jewellery, conversion of mixed-rate chassis excise to an ad valorem rate, retrospective CVD exemption for foreign-going vessel imports, and increased duty free allowances for eligible passengers and children.

External commercial borrowings allowed for low cost housing, rural housing fund raised and priority sector limits increased.
Allowance of External Commercial Borrowings (ECB) for low cost affordable housing and creation of a Credit Guarantee Trust Fund are proposed to expand institutional credit flow; the Rural Housing Fund provision is to be increased and the indirect finance ceiling under the priority sector raised, with an extension of the existing interest subvention scheme for eligible housing loans.

Duty-free baggage allowance increased for eligible passengers and children, altering import concession thresholds under the Budget.
The Budget raises the duty-free baggage allowance for eligible passengers of Indian origin and for children up to ten years, modifying customs import concession thresholds for returning travellers and updating allowances last revised in 2004.

External commercial borrowing for airline working capital permitted, with direct ATF import allowed and foreign equity under review.
Permission was proposed to permit external commercial borrowings for short term working capital needs of the airline industry subject to an aggregate ceiling; the Government authorized direct import of Aviation Turbine Fuel (ATF) by Indian carriers as actual users; and a proposal to allow foreign airline equity participation up to a specified threshold in scheduled and non scheduled carriers is under active consideration.

Income tax deduction for new retail investors to promote direct equity investment with eligibility and lock-in conditions.
A central government scheme provides a limited income tax deduction for qualifying new retail investors who invest directly in equities, subject to an upper income eligibility threshold, a capped amount eligible for deduction, and a prescribed lock-in period, with detailed operational rules to be announced later.

External commercial borrowings allowed for toll-road capital expenditure to encourage PPPs, subject to original project inclusion.
Allocation for the Ministry of Road Transport & Highways increased to Rs. 25,360 crore for 2012-13 with an NHDP construction target of 8,800 km. External Commercial Borrowings (ECB) are permitted for capital expenditure on maintenance and operation of tolled roads and highways only when such O&M capital expenditure is part of the original project, to encourage public-private partnerships.

Qualified Foreign Investor access to corporate bond market proposed to widen investment participation and liquidity.
Proposals aim to deepen capital market reforms by permitting Qualified Foreign Investors access to the corporate bond market, simplifying and lowering the cost of the IPO process with mandatory electronic issuance above a specified threshold, introducing electronic voting to expand shareholder participation, and permitting two-way fungibility in Indian Depository Receipts subject to a ceiling.

Financial sector legislative reform announced to strengthen regulation of microfinance, housing, rural banking and public debt management.
The government proposes multiple bills to advance financial sector legislative reform, including dedicated regulation for microfinance, amendments to housing, small industry, agricultural and regional rural banking statutes, an amendment to stamp law affecting financial transactions, and a Public Debt Management Agency Bill to establish an institutional mechanism for public debt management.

Harmonized master list of infrastructure clarifies policy and enables debt finance, credit enhancement and PPP joint ventures for defence PSUs.
A harmonized master list of infrastructure has been approved to reduce policy ambiguity and promote investment. The Government launched an Infrastructure Debt Fund to attract long-term overseas pension and insurance finance, and IIFCL has instituted credit enhancement and take-out finance structures; a consortium for direct lending and in-principle approval to developers before PPP bid submission has been created. Separate guidelines permit defence Public Sector Undertakings to form joint venture companies under PPP arrangements to foster self-reliance and production of advanced defence goods.

Capitalization of public sector banks: budgetary provision announced and financial holding company proposed to mobilise capital.
Provision for capitalization of Public Sector Banks, Regional Rural Banks and other financial institutions including NABARD is made in the Union Budget, and the government is considering creation of a financial holding company to mobilise resources to meet the capital requirements of Public Sector Banks.