Proposals	Impact
Agriculture
Loan waiver for small farmers. Agri credit target at Rs 2.8 lakh cr	Increase in agri-production and yield improvement
Budgets for micro irrigation (Rs 500 cr) horticulture Rs 1,100 cr
Cut in customs duty on phosphoric acid at 5% and sulphur at 2%	Input costs for fertiliser companies comes down
Companies: Jain Irrigation, Aries Agro, Monsanto India, Kavery Seeds
Auto and auto ancillaries
Excise cut on buses, small cars and 2-3 wheelers from 16 to 12%	Lower cost, boost volumes
Reduction in CENVAT from 16% to 14%	Will bring commercial vehicles (other than buses) in the lower tax bracket
Increase in exemption limits of personal income tax	Will benefit consumption driven sectors such as automobiles
Hybrid cars from 24% to the general revised rate of 14%	Lower fuel emissions
Excise duty cut on tyres from 16% to 14%	Tyre manufacturers to benefit as they have pricing power
Positive for: Apollo Tyres, Amtek Auto, Hero Honda, Tata Motors, Maruti Suzuki and Eicher Motors
Banking
Agricultural loan waiver of Rs 60,000 crore to be reimbursed	One time clean up act in balance sheet; To be shown as loan loss recovery in P&L
Higher target in agriculture credit to Rs 2.8 lakh cr in FY09	Higher credit growth
Double digit growth in mfg targeted; Excise cut on auto	Higher credit growth
DDT rationalisation	SBI, ICICI Bank having subsidiaries benefit
PSU banks asked to open atleast 250 rural accounts every year	To increase cost of operating the account for PSBs
Cautiously positive: Large PSU banks like SBI, PNB, Canara, Bank of Baroda and ICICI Bank
Capital goods
Allocation to defence, power and construction sectors hiked	Equipment demand to go up as these sectors form a large part of revenue
Peak excise cut to 14%; select refrigeration equipment duty cut	Help companies to absorb the input cost
Customs duty cut to 5% on project imports, 4% CVD withdrawn	Neutral for the sector
Companies: Positive for Voltas, Blue Star, BEML, BEL, L&T, ABB, Alstom, Crompton, BHEL
Cement
Excise duty introduced for bulk cement @ Rs 400 a tonne, clinkers @ Rs 450 a tonne	Will add to the already high cement prices; companies to pass on higher costs to customers
Customs duty reduction in project imports	Companies with ongoing expansion to benefit
Negative for: end consumers, neutral for companies
Consumer Durables/Retail
Hike in the individual income tax slab, loan waiver to farmer	Higher disposable income
Reduction in CENVAT and CST	Lower finished goods prices will lead to higher demand
Positive for Pantaloon, Vishal Retail, Shoppers Stop, Trent and Reliance Industries (retail business), Videocon, Voltas, Blue Star
Education
SSA budget hiked by 23%	Educational content and technology service providers to schools will benefit
Excise duty reduction on printing and writing paper	Will help educational publishers
Positive for educational software cos like Educomp, Everonn Systems, Core Projects. NIIT and educational publishers like Navneet Publications
Financial Services
RGGVY to continue	To-be-listed REC to benefit
Corpus for RIDF and other infrastructure-related schemes raised	Infrastructure finance companies like IDFC to gain
Subsidies offered to rural housing	To benefit housing finance companies present in lower income groups
Positive for: REC, IDFC, GIC Housing, Dewan Housing
FMCG
Loan waiver given to farmers, hike in IT exemption limit	May lead to higher disposable income and consumption
CENVAT cut from 16% to 14%; CST from 3% to 2%	Reduction in prices of finished products and boost consumption
Excise duty from 16 % to zero on tea and coffee mixes,	These products to be become cheaper
Excise halved to 8 % on water purification devices and cereals
Excise duty on packing paper down from 12% to 8%	To bring down the cost of packaging- a key cost element
Excise duty halved to 8% on specified packaging
Parity in taxation for both filter and non-filter cigarettes	Neutral to positive for cigarette manufacturers
Positive for: HUL, Marico, ITC, Nestle, Godrej Consumer and Dabur
Healthcare
Excise duty on all pharma products reduced from 16% to 8%	Companies with a higher contribution from the domestic segment will benefit
Customs duty on life saving drugs to be reduced from 10% to 5%	Cost for companies (MNCs) which import life saving drugs will come down
Tax holiday for hospitals being set up in smaller cities and towns	Will help recover investments faster in case of greenfield facilities
125% deduction on R&D outsourcing expenditure	Improve competitiveness of Indian players
Additional deduction of Rs 15,000 on medical insurance premium	Expands medical insurance coverage
Health sector allocation increased by 15% to Rs 16,534 crore	Improved medical infrastructure, benefits all pharma companies
Positive for: FDC, Apollo Hospitals, Fortis, Emcure Pharma, GSK, Nicholas Piramal, Pfizer, Aventis Cadila, Sun Pharma and Cipla
Information Technology
Packaged software to attract a higher excise @ 12%	Product companies to shell out more in taxes
Higher defense budget	Benefits for a few IT firms providing services to defense
Positive for Allied Digital, Tulip IT Services, Rolta India, Negative for product companies like Subex, 3i-Infotech, i-Flex, Ramco Systems
Infrastructure
Higher allocation for Bharat Nirman, roads, water, etc	Positive for construction sector
Positive for: IVRCL Infra, Patel Engineering, Nagarjuna Construction, Pratibha Industries
Metals
Cut in customs duty on steel melting & aluminium scrap to nil	Benefit steel companies manufacturing long products
Emphasis on drinking water, sanitation, irrigation and construction	Better prospects for pipe manufacturers
Positive for: Usha Martin, Jindal Stainless, Bhushan Steel, Welspun Gujarat
Oil and Gas
Ad valorem duty on unbranded petrol and diesel abolished	No impact on retail prices
Duty of Rs 14.35 per litre and Rs 4.60 on unbranded petrol/diesel
CST reduced from 3% to 2%.	Less under recoveries on LPG and kerosene
5% customs duty on naphtha	Naphtha to cost more
Positive for: HPCL, BPCL, ONGC, GAIL, Aban, Great offshore, Shiv Vani Oil, Alphageo; Marginally negative for Reliance Industries
Power
11th Plan target 78,577 MW for power generation	More projects will be announced, power utilities benefit
Five new UMPP and fourth UMPP at Tilaiya to be awarded shortly
RGGVY allocation of Rs 5,500 cr, Rs 800 cr for reforms in FY09	Faster implementation of rural electrification projects
Positive for: NTPC, Tata Power, Lanco Infratech, KEC International, Kalpataru Power and Jyoti Structure
Real Estate
DDT rationalised	To help real estate developers with project-specific SPVs and REITs
5-year tax holiday for hospitals under Section 80-IB	To help companies with integrated townships in Tier II and Tier III cities
Positive for: DLF, HDIL, Indiabulls Real Estate, Parsvnath Developers, Unitech
Telecom
Excise duty cut on wireless data card from 16% to nil	Effective rate at 4% due to special addition duty, facilitate wireless penetration
1% National Contingent Calamity Duty on handsets	Marginal increase in handset prices
1 lakh broadband enabled centres in rural areas and SWAN	Increase broadband services penetration
Halving of customs and excise to 5% and 8% on convergence units	Cheaper VoIP services
Internet telecommunication services brought under service tax net	Marginal cost increase
Neutral for: All telecom service providers
Textiles
20% rise in allocation for TUF to Rs 1,090 crore	Additional financial support for capex in the industry
Schemes for Integrated Textile Parks maintained at Rs 450 crore	Increase in set up of new textile parks
NCCD of 1 % removed on polyester filament yarn	PFY to get cheaper by 1 %