Finly march 2015

I SSUENo42MARCH 2015

FI Nl y DEM OGRAPHI C

DI VI DEND

Contents

10 17 CoverSt or y

Educat i onalSect i on

21 23

Gl i mpsesof Fi nst r eet 201415

Tr i vi a

Cont r i but or s Edi t ori nChi ef :I r i na Edi t or s: I r i na,Shr eya,Shwet aandTamoghna Desi gn:Rohi t

Co v e rS t o r y Thee c o no mi cdo wns i deo ft heI ndi a n de mo gr a phi cdi v i de nd I r i n a

De mogr aphi cdi vi de nd

De mogr a phi cdi vi de ndr e f e r st oape r i odi nwhi c hde c l i ni ngf e r t i l i t yr a t e sl e a dt o ac ha ngei nt hea ges t r uc t ur eofpopul a t i on,r e s ul t i ngi na ni nc r e a s ei nt hewor ki nga ge gr oup.Thi sl e a dst oa ni mpr ove me nti nt hede pe nde nc yr a t i owhi c h me a nst ha tt he r ema ybea na c c e l e r a t i oni nt hegr owt hoft hee c onomy.

De pe nde nc yr at i o=s ha r eofyounga nde l de r l ypopul a t i ont ot ot a lpopul a t i on I ti se s t i ma t e dt ha tI ndi a ’ sde pe nde nc yr a t i owi l lde c l i nemor es ha r pl yi nt he c omi ngye a r s .

Thi sme a nst ha tt he r ewoul dbemor ewor ki nga gepopul a t i onl e a di ngt omor e i nc ome ,mor es a vi ngsa ndmor egr owt h.Wi t he f f e c t i vepubl i cpol i c i e st hi st i me pe r i odoft hede mogr a phi cdi vi de ndc a nhe l pf a c i l i t a t emor er a pi de c onomi c gr owt ha ndput sl e s ss t r a i nonf a mi l i e sa st henumbe rofde pe nde nt s( c hi l dr e na nd e l de r s )r e duc e .Al s odur i ngt hi spe r i od,ma nywome ne nt e rt hel a bourf or c ef or t hef i r s tt i me .

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Not e :Popul a t i onde pe nde nc yr a t i oi sde f i ne da s100[ Popul a t i ona ge s1564 ( % oft ot a l ) ] .Thi sde f i ni t i onf ol l owsI MF( 2006) Thec ha r ts howst hede pe nde nc yr a t i of r om1960t o2010.Ade c l i nei sobs e r ve df orI ndi aa ndt heWor l da sawhol e Fi gur e2:Ra t i oofwor ki nga get ode pe nde ntpopul a t i on

Thegr a phs howst her a t i oofwor ki nga get ode pe nde ntpopul a t i on( t hos e 15t o64ye a r sol d,di vi de dbyt hos ea boveorbe l owt hi sa ger a nge-t he i nve r s eoft hede pe nde nc yr a t i o)ba s e donda t aa ndpr oj e c t i onsf r omt he Uni t e dNa t i ons .

I nI ndi a ,Na t i ona lFa mi l yPl a nni ngPr ogr a mmewa sf or mul a t e di n1952t o pr omot ef a mi l ypl a nni ngf orpopul a t i onc ont r ol .Howe ve r ,t hi spr ogr a mmef a i l e dt oa c hi e vewha ti ts e toutt odo,t hus ,t hepopul a t i onc ont i nue dt oi nc r e a s ee xpone nt i a l l yt hr oughout1960’ s ,70’ sa nd80’ s .

Thi sf a i l ur ema ybeaba neoraboonf orI ndi ade pe ndi ngonhowt hi ss ur gi ng popul a t i oni sut i l i z e d.

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Mor et ha n50pe rc e ntofI ndi a ’ spopul a t i oni si nt hewor ki nga gegr oupof15 t o59a nd28pe rc e nti na gegr oup1529.I ti se xpe c t e dt ha tbyt heye a r2020, mor et ha n65pe rc e ntoft heI ndi a npopul a t i onwoul dbei nt hewor ki nga ge gr oupa ndI ndi awoul de nj oyt hede mogr a phi cdi vi de nd.

Ta bl e1:Yout hpopul a t i oni nI ndi a

De mogr a phi cdi vi de ndha sbe e nc a l c ul a t e dbyI MFf ors e l e c t e dI ndi a n St a t e s Ta bl e2:De mogr a phi cDi vi de nd

Sour c e :I MFwor ki ngpa pe r s2011 Ta mi lNa du,Ka r na t a kaa ndGuj a r a ta r ea mongt hebe s tpe r f or mi ngI ndi a n s t a t e si nt e r msofde mogr a phi cdi vi de nd.

Me c ha ni s msf orgr owt hi nt hede mogr a phi cdi vi de nd: The r ea r ef ourme c ha ni s mst hr oughwhi c ht hebe ne f i t sofde mogr a phi cdi vi de nda r eobt a i ne d: 1.I nc r e a s e dl a bours uppl y.

Onl yt hei nc r e a s ei nt hel a bours uppl ydoe snothe l p.The r eha st obea na bi l i t yi nt hee c onomyt oa bs or bt hei nc r e a s e dnumbe rofwor ke r s ,ot he r wi s ei t wi l lonl yl e a dt oa ni nc r e a s ei nune mpl oyme ntwhi c hi sde t r i me nt a lt ogr owt h.

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2.I nc r e a s ei ns a vi ngs .

Ast henumbe rofde pe nde nt sde c r e a s e si ndi vi dua l sc a ns a vemor e .Thi s i nc r e a s e st hes t oc kofc a pi t a lwhi c hme a nst he r ec a nbemor epr oduc t i vi t yof t hec a pi t a lt hr oughi nve s t me nt s .

3.Huma nc a pi t a l .

De c r e a s e si nf e r t i l i t yr a t e sr e s ul ti nf e we re c onomi cpr e s s ur e si nt hef a mi l ya nd a l l owsf ormor ei nve s t me ntpe rc hi l di nhe a l t ha nde duc a t i on( l e a di ngt omor e pr oduc t i vepopul a t i oni nt hef ut ur e ) .

4.I nc r e a s i ngdome s t i cde ma ndbr oughta boutbyt hei nc r e a s i ngGDPpe rc a pi t a a ndt hede c r e a s i ngde pe nde nc yr a t i o.

Wa yt oaDe mogr a phi cDi s a s t e r Aswec a ns e ef r omt hea bovea r gume nt s ,agr owi ngpopul a t i onc a nbeus e dt o r e a pal otofe c onomi cbe ne f i t s .Howe ve r ,f a i l ur et opr ovi deoppor t uni t i e st o t hegr owi ngyoungpopul a t i onwi l lr e s ul ti nr i s i ngune mpl oyme nta nda n i nc r e a s e dr i s kofs oc i a luphe a va l .

Thede mogr a phi cdi vi de ndi spr oj e c t e dt ope a kove rt hene xtt wode c a de s a ddi nga bout2pe r c e nt a gepoi nt st oa nnua lpe rc a pi t ai nc omegr owt h.Fur t he r , t hedi vi de nds houl dbe gi nt ode ÂŹc r e a s egr a dua l l yba s e dont heUNPDpr oj e c t i ons ,a ndde c r e a s er a pi dl ya c c or di ngt ot heI DBpr oj e c t i ons .Thec a l c ul a t i ons a l s os howt ha tove rt hec ur r e ntde c a de ,t hei nc r e me ntt ope rc a pi t ai nc ome gr owt hf r omde mogr a phi cc ha ngeha sbe e nbe t we e n1.

5t o2pe r c e ntpoi nt spe r a nnum.

Ta bl e3:De mogr a phi cdi vi de ndove rt hede c a de s

Sour c e :I MFwor ki ngpa pe r2011

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Ec onomi ce f f e c t sofde mogr a phi cdi vi de nd

I ndi ai se xpe c t e dt obe c omeoneoft hemos tpopul ousna t i onsby2025,wi t h apopul a t i onofa r ound1.

4bi l l i on.Thec ount r y’ spopul a t i onpyr a mi di s e xpe c t e dt o“ bul ge ”a c r os st he15–64a gebr a c ke tove rt hene xtde c a de , i nc r e a s i ngt hewor ki nga gepopul a t i onf r oma ppr oxi ma t e l y761mi l l i ont o 869mi l l i ondur i ng2011–2020.Duet ot hi s ,I ndi awi l lbee xpe r i e nc i nga pe r i odof“ de mogr a phi cbonus ”whe r et hegr owt hr a t eoft hewor ki nga ge popul a t i onwoul dbemor et ha nt ha toft het ot a lpopul a t i on.

Fi gur e3:Popul a t i onpyr a mi d

Sour c e :Ce ns usofI ndi aPr oj e c t i ons Thi sf i gur es howsa“ bul ge ”i nt hewor ki nga gepopul a t i onof1529.Wec a n a l s os e et ha tt hepe r c e nt a geofpopul a t i oni nt hea gebr a c ke t65a nda bovei s t a pe r i ngdown.Thi sl e a dst oar e duc t i oni nt hede pe nde nc yr a t i o.

Ar ound64% ofI ndi a ’ spopul a t i oni se xpe c t e dt obei nt hea gebr a c ke tof 15–59ye a r sby2026,wi t honl y13% oft het ot a la ge da bove60ye a r s .

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Thi spopul a t i onha sal otofpot e nt i a lt oge ne r a t ede mogr a phi cdi vi de nd,howe ve r ,i fnotut i l i z e dpr ope r l yi tc a nbe c omeade mogr a phi cdi s a s t e r .

Fa c t or sr e s pons i bl ef orade mogr a phi cdi s a s t e ra r e : 1.Fa l li ne mpl oyme nte l a s t i c i t yofgr owt h.

Empl oyme nte l a s t i c i t y=Numbe rofj obsge t t i ngc r e a t e dwi t he a c hpe r c e nt a ge i nc r e a s ei nt hegr owt hi nt heI ndi a ne c onomy Empl oyme nte l a s t i c i t yofgr owt hha sbe e nf a l l i ngs ha r pl yi nI ndi a .Whi l ei t wa s0.

44i nt hepe r i od19992000t o200405,i twe ntdownt o0.

01i nt he pe r i od200405t o200910.Thi sme a nst ha tweha veaj obl e s sgr owt hi nt he c ount r y.Empl oyme ntgr owt hwa sj us t0.

5% pe ra nnumf r om200405t o 201112,t hepe r i odt ha ts a wt hehi ghe s tgr owt hofGDPby8.

5% pe ra nnum.

Aspe rt heWor l dBa nkRe por t ,i nI ndi ayout hune mpl oyme nta sape r c e nt a ge ofyout hpopul a t i oni s10pe rc e ntf orma l e sa nd11pe rc e ntf orf e ma l e s .

Aspe rNSSO201112,une mpl oyme ntr a t ewa s2.

4pe r c e ntf orma l e sa nd3.

7 pe r c e ntf orf e ma l e s ,whi l et heune mpl oyme ntr a t ea mongt heyout h( 1529 ye a r s )va r i e dbe t we e n6.

1pe r c e ntt o15.

6pe r c e nt .

Ta bl e4:Une mpl oyme ntr a t e s

Sour c e :NSSRe por t ,Empl oyme ntSi t ua t i oni nI ndi a ,201112

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2.Na t ur eofe mpl oyme ntoppor t uni t ya va i l a bl e Ma j or i t yoft hepe opl ei nt hec ount r yr e ma i ns e l f e mpl oye da ndt hes e c ond hi ghe s tc ont r i but i oni ne mpl oyme ntc ome si nf or mofc a us a lwor ke r s .

3.Qua l i t yofe mpl oyme ntge ne r a t i on Ma j or i t yofI ndi a nyout ha r enote mpl oya bl ebe c a us eoft hequa l i t ya ndl e ve l ofe duc a t i on.

Aspe rTheThi r dAnnua lEmpl oyme nt Une mpl oyme ntSur ve y201213 c onduc t e dbyLa bourBur e a u,Mi ni s t r yofLa boura ndEmpl oyme nti n2013 Eve r y1pe r s onoutof3pe r s onswhoi shol di ngade gr e ei ngr a dua t i ona nd a bove ,i sf oundt obeune mpl oye df ort hea gegr oup1529ye a r s .

Ta bl e5:Une mpl oyme ntRa t e s

Sour c e :NSSRe por tonune mpl oyme nt I nr ur a la r e a st heune mpl oyme ntr a t ea monggr a dua t e sa nda bovef ort hea ge gr oup1529ye a r si se s t i ma t e dt obe26.

4% whe r e a si nur ba na r e a st hes a me i s18.

1%.

Thec ur r e ntt r e ndofune mpl oyme nta monge duc a t e dpe r s onsi sac a us eof c onc e r na ndr a i s e ss e r i ousque s t i onsont hebe ne f i t sofde mogr a phi cdi vi de nd.I nma nyc a s e s ,t hee mpl oyme ntpr ovi de dbyt hes t a t ei sj us ts ubs i s t e nc el e ve le mpl oyme nt .

Looki nga tt he s ea s pe c t st he r ei sada nge rofde mogr a phi cdi vi de ndge t t i ng c onve r t e di nt odi s a s t e r .Thepopul a t i oni nt hec ount r yc ont i nue st os ur gea nd wor kf or c ei si nc r e a s i ngbute mpl oyme ntoppor t uni t yi snoti nc r e a s i ngpr opor t i ona t e l y.Mos toft hej obsa r enotqua l i t yj obsa ndonl ys ubs i s t e nc el e ve lj obs .

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Apa r tf r omj obsa nde duc a t i on,t he r ea r epr obl e msl i ke he a l t ha ndwe l f a r ea ndpoors a ni t a t i onf a c i l i t i e si ns ome pa r t sofI ndi a .Ba s i c a l l y,t heHuma nDe ve l opme ntI nde x ( HDI )ofI ndi ai snots ogoodt os uppor ts uc hagr owi ng popul a t i on.HDIme a s ur e st hr e ef a c t or s :l i f ee xpe c t a nc y, e duc a t i onl e ve l sa ndi nc ome s .I ndi aRa nks135a spe rUNDP whi c hpubl i s he sHDRa nnua l l y.

Wha tc a nbedonet opr e ve ntde mogr a phi cdi vi de ndbe c omi ngade mogr a phi cdi s a s t e r ?

1.Pr i va t es e c t orde ve l opme nt 2.I mpr ovi ngr e l e va nc ea ndqua l i t yoft r a i ni nga ndI nt e gr a t i ngs ki l l swi t he duc a t i on 3.I nc l us i onofi nf or ma ls e c t ora ndwome n 4.Pr omot ema nuf a c t ur i nga tal a r ges c a l ea nda l s oi de nt i f y a r e a swhi c hha vehi ghe mpl oyme ntge ne r a t i onpot e nt i a l .

5.Pr omot i ngMSMEs e c t or 6.Ac c e l e r a t i nge nt r e pr e ne ur s hi pa nds e l f e mpl oyme nt

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E duc a t i o na lS e c t i o n

Shr e yaDe va n On28t hFe br ua r y,Fi na nc eMi ni s t e rMr .Ar unJ a i t l e ya nnounc e dUni onBudge t f ort heye a r201516wi t ht hemi s s i ont oi gni t eI ndi a ’ sgr owt he ngi ne .I twa st he f i r s tf ul lt i mebudge ts i nc eMr .Na r e ndr aModibe c a mePr i meMi ni s t e rofI ndi a .

He nc et hee xpe c t a t i onswe r eve r yhi ghf r omt hi sbudge t .Suppor t e r st out e di ta s t hef i r s ts t e pt owa r dsc r e a t i nga ni nve s t orf r i e ndl ye nvi r onme ntwhe r e a sc r i t i c s c a l l e dt het a r ge t st oounr e a l i s t i c .

Al mos te ve r yonewi l la gr e et ha ti twa snotaga mec ha nge ra st hena t i onwa s hopi ngf orbutt he r ewe r es omei mpor t a ntr e f or ms .He r ea r es omes e c t orwi s e hi ghl i ght soft hebudge t .

I nf r as t r uc t ur e I nf r a s t r uc t ur a lde ve l opme nt ,bot hs oc i a la swe l la sphys i c a l ,i sa ni mpor t a nta r e a i fI ndi awa nt st obeonagr owt hpa t h.Ti l lnowt hi ss e c t orha sbe e nt hes ol e r e s pons i bi l i t yofgove r nme ntwi t hpr i va t ea ndf or e i gns e c t orc ont r i but i ngmi ni ma l l y.Thi sha sbe e noneoft hema i nr e a s onsf ort hehi ghf i s c a lbur de n.Butwi t h t hene wr e f or mse nc our a gi ngpr i va t ea ndf or e i gni nve s t me nt ,t hei nf r a s t r uc t ur e s e c t ori sgoi ngt oge tt hemuc hne e de dpus h.Someoft her e f or mst ha twe r ei nt r oduc e di nbudge twe r e :

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•I nc r e as ei nPubl i ci nve s t me ntbyRs .70, 000Cr or e s Gove r nme ntha sde l a ye di t sf i s c a lbe l tt i ght e ni ngpol i c yofbr i ngi ng f i s c a lde f i c i tt o3% f r omt woye a r st ot hr e eye a r sma i nl ybe c a us eoft hene e dt oi nc r e a s e publ i ci nve s t me nti ni nf r a s t r uc t ur e .Thi sye a r ’ sbudge tpr omi s e sr a pi de xpa ns i on ofr oa ds ,por t s ,me gapowe rpl a nt s ,a i r por t sa ndot he rpr oj e c ta ndmos toft he f undsa r egoi ngt oc omef r omt hec e nt r ei t s e l f .

•Re vi t al i s at i onoft hePPP( Publ i cPr i vat ePar t ne r s hi p)mode l ForI ndi at obea bl et ome e ti t sva s ti nf r a s t r uc t ur a lne e dsama j orc ont r i but i on ha st oc omef r ompr i va t es e c t ora swe l l .Ti l lnowpr i va t es e c t orha dbe e nr e l uc t a ntt oi nve s tbe c a us eofs l owc l e a r a nc e s ,r e dt a pi s ma swe l la sbe c a us eoft he huger i s ki ni nf r a s t r uc t ur epr oj e c t s .Thebudge tt huspl a nst or e vi vet hePPP mode lbya gr e e i ngt obe a rama j orpa r toft her i s kwhi c hma yl e a dt omor epr i va t ec ompa ni e swi l l i ngt oi nve s ti ni nf r a s t r uc t ur e .

•At alI nnovat i onMi s s i on( AI M) AI M ha sbe e npr opos e dt of os t e rac ul t ur eofi nnova t i ona ndwi l le s t a bl i s ha pl a t f or mf ore nt r e pr e ne ur s ,r e s e a r c he r sa nda c a de mi c i a nsbys uppor t i ngt he i rR &Da ndr e s e a r c he f f or t s .Ana l l oc a t i onofRs .150c r or e sha sbe e ne a r ma r ke d f ort hi smi s s i on.

•Pl ugandpl aymode l Thebudge tha sa l s opr opos e dapl uga ndpl a ymode lf orbi gi nf r a s t r uc t ur epr oj e c t s .I nt hi smode la l lr e gul a t or yc l e a r a nc e swi l lbet a ke nc a r eofbe f or et hepr oj e c t sa r ea wa r de dt opr i va t ede ve l ope r st hr ougha uc t i ons .The r ea r epl a nsofs e t t i ngupf i veUl t r aMe gaPowe rPr oj e c t s ,e a c hof4000MWsus i ngt hi smode l .

•Ta xf r e ebondsf orpr oj e c t si nr a i lr oa da ndi r r i ga t i on •SETU( Se l fEmpl oyme ntandTal e ntUt i l i s at i on) Toe nc our a ges t a r tupse s pe c i a l l yi nt heI Ts e c t or ,Gove r nme nti se s t a bl i s hi nga me c ha ni s mknowna sSETUwhi c hwi l lbeaf a c i l i t a t i onpr ogr a mmet os uppor t a l la s pe c t sofs t a r t upbus i ne s s e s ,a ndot he rs e l f e mpl oyme nta c t i vi t i e s .

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We l f ar es c he me s •JAM t r i ni t y( JanDhanYoj ana,AadhaarandMobi l e ) Thema i na i mofJ AM t r i ni t ywi l lbet oe na bl edi r e c tt r a ns f e rofbe ne f i t sa ndt o pa s sbe ne f i t st oc ommonma nwi t houta nyl e a ka ge si nbe t we e n.

•Swac hhBhar atAbhi yan Toi mpr ovet hepr obl e mofs a ni t a t i oni nI ndi a ,gove r nme ntha spr opos e dt o bui l ds i xc r or et oi l e t sa c r os st hec ount r yunde rt hi ss c he me .

•Ani nt e gr a t e de duc a t i ona ndl i ve l i hoods c he mec a l l e d‘ Na iMa nz i l ’wi l lbe l a unc he dt hi sye a rt oe na bl eMi nor i t yYout hwhodonotha veaf or ma ls c hool l e a vi ngc e r t i f i c a t et oobt a i nonea ndf i ndbe t t e re mpl oyme nt .

•At alPe ns i onYoj ana Thi ss c he mewi l lpr ovi deade f i ne dpe ns i on,whi c hwi l lde pe ndont hec ont r i but i ona mounta ndt hepe r i od.TheGove r nme ntwi l lbec ont r i but i ng50% oft he be ne f i c i a r i e s ’pr e mi um( upt oama xi muma mountofRs .1, 000e a c hye a r ) ,f or f i veye a r s ,i nt hene wa c c ount sope ne dbe f or e31s tDe c e mbe r ,2015s ot ha tmor e a ndmor epe opl ea r ee nc our a ge dt oj oi nt hi ss c he me .

•Uni ve r s alSoc i alSe c ur i t ys ys t e m Mos toft heI ndi a npopul a t i ondoe snotha vea nyki ndofi ns ur a nc e ;l i f e ,a c c i de nt a lorhe a l t h.Tos ol vet hi spr obl e mGove r nme ntha spr opos e dauni ve r s a ls oc i a l s e c ur i t ys ys t e mwhi c hwi l lbebe ne f i c i a lf ora l lI ndi a ns ,e s pe c i a l l yt hepoora nd t heunde r pr i vi l e ge ds e c t i onoft hepopul a t i on.

•Gove r nme ntha sa l s ode c i de dt ous eRs .9, 000c r or eunc l a i me df undsi n PPF/ EPFf orSe ni orCi t i z e nsFund.

MSME( Mi c r o,Smal landMe di um Ent e r pr i s e s )De ve l opme nt I ndi a nMSMEs e c t orge ne r a t e shugee mpl oyme ntoppor t uni t i e sa nd62% of t hi ss e c t ori sowne dbySC/ ST/ OBCmos tofwhomf i ndsi tve r yha r dt oa c c e s s s our c e sofc r e di t .Toc ount e rt hi spr obl e m,gove r nme ntha spr opos e ds ome me a s ur e s .

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•Mi c r oUni t sDe ve l opme ntRe f i nanc eAge nc y( MUDRA)Bank MUDRABa nkwi l lbes e tupwi t hac or pusofRs .20, 000c r or e sa ndwi l lr e f i na nc et heMi c r oFi na nc eI ns t i t ut i onst hr oughaPr a dha nMa nt r iMudr aYoj a na .

Unde rt hi ss c he mepr i or i t ywi l lbegi ve nt oSC/ STe nt e r pr i s e swhi l el e ndi ng.

•I mpr ovi ngl i qui di t yt hr oughTRe Ds Ama j orpr obl e mf a c e dbya l lMSMEsi shi ghwor ki ngc a pi t a lr e qui r e me nt whi c hi sc a us e dduet ol ongr e c e i va bl e sr e a l i z a t i onc yc l e sorhi gha ve r a gec ol l e c t i onda ys .Ane l e c t r oni cTr a deRe c e i va bl e sDi s c ount i ngSys t e m( TRe DS) wi l lbee s t a bl i s he df orf i na nc i ngoft r a der e c e i va bl e sofMSMEs ,f r omc or por a t ea ndot he rbuye r s ,t hr oughmul t i pl ef i na nc i e r s .

Taxat i on •GAAR I mpl e me nt a t i onoft heGe ne r a lAnt iAvoi da nc eRul e( GAAR)ha sbe e npos t pone dbya not he rt woye a r s .

•Abol i t i onofWe al t hTax Gove r nme ntha spr opos e dt oa bol i s ht hewe a l t ht a xa ndi ns t e a dr e pl a c e di twi t h a na ddi t i ona ls ur c ha r geof2% ont hes upe r r i c hwi t hat a xa bl ei nc omeofa bove Rs .

1c r or e .

•Re duc t i onofc or por at et ax Gove r nme ntpr opos e dt or e duc et hec or por a t et a xr a t ef r om30% t o25% i nne xt f ourye a r st obr i ngi ta tpa rwi t hr a t e sofot he rAs i a ne c onomi e s .

•100% e xe mpt i onf orc ont r i but i ont oSwa c hc hBha r a t ,e xc e ptCSRc ont r i but i ons .

•I nc r e as ei nSe r vi c et ax Hous e hol dswe r ei nf oras hoc kwhe ngove r nme nta nnounc e da ni nc r e a s ei n s e r vi c et a xpl use duc a t i onc e s s e sf r om12.

36% t o14%.

Thi swi l lma kee ve r yt hi ngmor ee xpe ns i vef ort hec ommonma nf r omgoi ngoutf oramovi et or e s t a ur a nta ndmobi l ebi l l sa mongot he r s .

14

•Exe mpt i onsupt oRs .4, 44, 200 Gove r nme ntha spr opos e dt ot a le xe mpt i onst ot hee f f e c tofRs .4, 44, 200t hr ough i nc r e a s i ngl i mi t sonde duc t i onsl i keofpe ns i onf unds ,he a l t hi ns ur a nc epr e mi um e t cwhi c hwi l lbebe ne f i c i a lf ormi ddl ec l a s st a xpa ye r s . .

Someoft heot he ri mpor t anthi ghl i ght soft hebudge twe r e : •Agr i c ul t ur e : Gove r nme ntha spl a nne dt oa l l oc a t eRs .25, 000Cr or e st owa r dsRur a lI nf r a s t r uc t ur eDe ve l opme ntFund( RI DF)s e tupi nNABARDt opr ovi deha s s l ef r e e c r e di tt oa gr i c ul t ur es e c t or .

•Fi nanc i alMar ke t s : Me r gi ngofFor wa r dsMa r ke t sCommi s s i onwhi c hi st her e gul a t orf orc ommodi t yf ut ur e sma r ke t s ,wi t hSEBIt her e gul a t orf ors e c ur i t i e sma r ke tt o s t r e ngt he nr e gul a t i onofc ommodi t yf or wa r dma r ke t s •Gol dMe t alAc c ountandSove r e i gnGol dBonds : Gove r nme ntha spr opos e dt oi nt r oduc eaGol dMone t i s a t i onSc he mei nwhi c h gol dde pos i t or sc a ne a r ni nt e r e s ta ndj e we l l e r ys hopsc a nobt a i nl oa ni nt he i r me t a la c c ount s .

Al s oaf i na nc i a la s s e tc a l l e dSove r e i gnGol dBondsha sbe e npr opos e dwhi c h wi l lc a r r yaf i xe di nt e r e s tr a t e .Thi sc a na c ta sa na l t e r na t i vet opur c ha s i ng me t a lgol d •For e i gnI nve s t me nt s Gove r nme ntha sde c i de dt or e movea nydi s t i nc t i onbe t we e nf or e i gndi r e c t i nve s t me nt( FDI )a ndFor e i gnI ns t i t ut i ona lI nve s t me nt( FI I )a ndc a l lbot ht ype s ofi nve s t me ntbyt hena meoff or e i gni nve s t me ntf r omt hi sbudge t .Thi sc a nbe ac r uc i a lmoves ot ha tf or e i gni nve s t or sa r ee nc our a ge dt ot a kes t r a t e gi cs t a ke s i nI ndi a nf i r ms .

•Coor di nat i onofSki l l sI ndi aandMakei nI ndi a Gove r nme nti spl a nni ngt ol a unc haNa t i ona lSki l l sMi s s i ont opr ovi def or ma l s ki l lt r a i ni ngt ot heyoungpopul a t i onofI ndi as ot ha tt he ya r ee mpl oya bl ea nd r e ma i ns o.

15

•I nt e r nat i onalFi nanc i alCe nt r e Guj a r a tI nt e r na t i ona lFi na nc eTe c Ci t ywa se nvi s a ge da sa nI nt e r na t i ona l Fi na nc i a lCe nt r ea tpa rwi t hs uc hc e nt r e si nSi nga por e ,Duba ie t c ,t hef i r s t pha s eofwhi c hwi l ls t a r tt hi sye a r .

Mar ke tRe ac t i on Ma r ke twa svol a t i l et hewhol et i mebudge twa sbe i nga nnounc e d.BSEi nde x we ntupby0.

48pe r c e nta ndNSEi nde xwe ntupby0.

65pe r c e nt .Be c a us eof t heFi na nc eMi ni s t e r ’ sa nnounc e me nta boutt hee xt e ns i onoft hede a dl i nef or c ut t i ngt hef i s c a lde f i c i t ,Ni f t yi ni t i a l l yf e l lbutf i na l l ywe ntup0.

7pe r c e nta f t e r hea nnounc e dt her e duc t i oni nc or por a t et a xt o25%.

Ma j ori nt e r na t i ona lr a t i nga ge nc i e sl i keSt a nda r d&Poor ’ sa ndMoody' sha ve r ul e douta nyhopeofr a t i ngupgr a def r omt hec ur r e nt“ s t a bl e ”out l ook,s i nc e t hebudge twa sma i nl yf oc us e done c onomi cgr owt ha ndha dnoma j ors t r uc t ur a lr e f or msa ss uc h.

Hi t sandMi s s e s The r ea r et wos i de st oe ve r yc oi na ndt hi sbudge tha sbe e naboonf ors omea nd ba nef ors omeot he r s .Thegoodne wsi st ha tt hef oc usoni nve s t me nti ni nf r a s t r uc t ur ewi l ll e a dt oamul t i pl i e re f f e c ta ndt he r ewi l lbemor ej obsa ndmor e de ma ndf orc e me nt ,br i c ksa ndot he rc ons t r uc t i onma t e r i a l s .Al s ot hef oc uson a gr i c ul t ur ei nt hebudge twi l lbec r uc i a lf orboos t i ngr ur a li nc ome sa nda l s o i mpr ovi nga gr i c ul t ur a lpr oduc t i vi t y.

Al s ot hemovet ome r get heFor wa r dMa r ke t sCommi s s i on( FMC)wi t hSEBI i sa ni mpor t a nts t e pt owa r dsi nc r e a s i ngt het r a ns pa r e nc ya ndr e gul a t i onof c ommodi t yma r ke t s .Butofc our s ee ve r yt hi ngde pe ndsonhowe f f i c i e nt l yt he i mpl e me nt a t i oni sdone ,ot he r wi s e .

Ama j orwor r yi st ha tt hebudge t a r yr e f or msa r eba s e dont hea s s umpt i ont ha t t hegr owt hwi l li nc r e a s et o88.

5pe r c e nta sf or e c a s t e dbyMr .Ar unJ a i t l e y.

Al s oma r ke twa sdi s a ppoi nt e dwi t ht hee xt e ns i onofde a dl i nef orc ut t i ngf i s c a l de f i c i tt o3% ofGDP.

16

Gue s tLe c t ur ebyDr .

Pa nka jTr i v e dio nBudg e t Fi ns t r e e ta l ongwi t hTheGue s tLe c t ur eCommi t t e eor ga ni s e da gue s tl e c t ur ebyDr .Pa nka jTr i ve di ,He a dofDe pa r t me ntof Fi na nc ea ndf a c ul t yme nt orofFi ns t r e e t ,on4t hMa r c h,2014 ont het opi c' Ana l ys i sa ndEc onomi cI mpa c t-Budge t201516' .

Het a l ke da bouthowt het hr us ta r e a si nt hi sye a r ’ sbudge ta r e ma i nl ygr owt hi nAgr i c ul t ur a ls e c t or ,i nf r a s t r uc t ur e ,f or e i gn c a pi t a li nf l owe t c .Hea l s oe xpl a i ne dhowpr i c es t a bi l i t ya nd t hei nc r e a s i ngf i s c a lde f i c i ta r ema j ora r e a sofc onc e r n.He e nde dt hel e c t ur ebys a yi ngt ha tt hei mpa c toft hi sbudge tc a n onl yber e a l i s e di nl ongr una ndi mpl e me nt a t i onofbudge t a r y r e f or msi smos ti mpor t a nt .

17

Gl i mps e so fFi ns t r e e t 2 0 1 4 1 5 Wi t ht hel a s ti s s ueofFI Nl yf ort heye a r201415,wewoul dl i ke t or e me mbe rt hee ve nt st ha tweha veor ga ni s e ddur i ngt heye a r .

Wes t i l lha veal ongwa yt ogoa nda r eor ga ni z i ngmor ee ve nt s e ve na swepubl i s ht hi si s s ue .Wehopet ha te ve r yoneha da s muc hf una sweha di nor ga ni s i ngt he s ee ve nt s .

Le t ’ st a keal ooka ta l lt hewonde r f ulmome nt sweha d….

EVENT1:Gue s tLe c t ur ebyDr .Pa r t haS.Moha nr a m( CGAOnt a r i oPr of e s s orofFi na nc i a lAc c ount i ng,Rot ma nSc hoolofMa na ge me nt ,Uni ve r s i t yof Tor ont o) Dat e :Augus t22,2014 TOPI C:St oc kPi l i ng–I ns i ght sf r omAc a de mi cRe s e a r c h EVENT2:Annua lf e s toff i ns t r e e t-Fi nz oma ni a Onl i ner ound-6t hOc t , 2014,10: 00PM. Wr i t t e na nds t a ger ound-8t hOc t , 2014.

Ha r s hHa r wa nia ndRohi tSa r a ngi( bot hf r om PGB)e me r ge da st hewi nne r soft hee ve nt .The r unne r supwe r eMonys hBa nde a l l ya ndDa t t a t r a yBha nda r ka r( bot hs e c ondye a rs t ude nt s ) .

Thegoodi e s ’s pons orf ort hee ve ntwa s www. l i vi ngs t yl e . i n

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EVENT3:GLbyMrSr i dha rSe t hur a m ( pa r t ne r ,Suya s hAdvi s or s ) Dat e :10Nove mbe r2014 TOPI C:Pr i va t eEqui t ya ndVe nt ur eCa pi t a l

EVENT4 Fi ns t r e e ts t a l la tt heAnnua lAl umniMe e t ofSI MSR-Nos t a l gi a

EVENT5–Knowl e dgeSha r i ngSe s s i on on“ Fut ur e sa ndFor wa r ds ” Dat e :De c e mbe r5t h2014 Pr e s e nt e r s : 1.Loke s hDa s h( PGDMB) 2.Sa hi lJ a i n( PGDMI B) 3.Mi t iSut a r i a( MMSB) EVENT6–Fi ns t r e e tFi e s t a ,ye a r e nd f i na nc ef e s t i va lofFi ns t r e e t Thr e ec ompe t i t i onswe r ehe l di nt he f i e s t a : 1.Ar t i c l eWr i t i ngon18t hDe c e mbe r 2014 2.Ge ne r alQui zon22ndDe c e mbe r 2014 3.Equi t yRe s e ar c hCompe t i t i onon 23r dDe c e mbe r2014

19

Gue s tLe c t ur ebyMr .

Vi ve ka na ndSubba r a ma n,Re s e a r c hAna l ys t ,HDFCSe c ur i t i e s Dat e :23De c e mbe r2014

Eve nt7-4t hSI MSRFi na nc eConf e r e nc e ( SI FI CO) The me :Cont e mpor a r yi s s ue si nmode r n f i na nc e Eve nt8:Pr a va r t a na–as t r uc t ur e d f i na nc i a lpr oduc tde s i gni ngc ompe t i t i on Dat e :13t hFe br ua r y2015 Asa ni nt e gr a lpa r tofme l a nge( t he a nnua lf e s tofSI MSR) ,Fi ns t r e e t pr e s e nt e dPr a va r t a na2015,af i na nc i a lpr oduc tmode l l i ngc ont e s t .

Thee ve ntwa ss pons or e dbyNSDL ( Na t i ona lSe c ur i t i e sDe pos i t or y Li mi t e d)

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Eve nt9:Gue s tLe c t ur ebyDr .Pa nka j Tr i ve di ,Pr of e s s ora ndHe a d,De pa r t me nt ofFi na nc ea ndPr ogr a mCoor di na t ora t K. J .

Soma i yaI ns t i t ut eofMa na ge me nt St udi e s&Re s e a r c ha nda l s ot hef a c ul t y me nt orofFi ns t r e e t Dat e :4t hma r c h,2015 TOPI C:Ana l ys i sa ndEc onomi cI mpa c t : Budge t201516

21

I n s u r e db yS O N Y Mo s t o f S o n y ' sp r o f i t sc o mef r o ms e l l i n gi n s u r a n c e .

I nJ a p a n , t h e ys e l l a u t o , l i f ea n dme d i c a l i n s u r a n c e .

AS a f eB e t Wi t ho n l ya1 i n1 0 0c h a n c eo f h a v i n gan o n f a t a l i n j u r yo r i l l n e s s , t h ef i n a n c i a l s e c t o ri st h es a f e s t j o ba r e ao u t t h e r e !

T h i sme a n s , l e s ss i c kl e a v e s !

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