India's Finance Minister Arun Jaitley (C) poses as he leaves his office to present the federal budget for the 2014/15 fiscal year, in New Delhi
India's Finance Minister Arun Jaitley (C) poses as he leaves his office to present the federal budget for the 2014/15 fiscal year, in New Delhi Reuters

India's Finance Minister Arun Jaitley is presening the new government's first budget in Parliament on 10 July.

To find out where to watch the budget speech live online and for live webcast, click here.

The budget comes at a crucial time as the world expects the developing economy to undertake much-needed reforms to boost growth. The budget is widely expected to match Prime Minister Narendra Modi's business-friendly image, which so far helped raise stock prices to record levels.

Meanwhile, the government is facing troubles such as high inflation levels, stagnant growth and high current account deficit among others. The budget is expected to tackle the issues, while boosting domestic and international sentiment.

The economic survey released on 9 July reads:

"After achieving unprecedented growth of over 9% for three successive years between 2005-06 and 2007-08 and recovering swiftly from the global financial crisis of 2008-09, the Indian economy has been going through challenging times that culminated in lower than 5 per cent growth of GDP at factor cost at constant prices for two consecutive years."

"Persistent uncertainty in the global outlook, caused by the crisis in the Euro area and general slowdown in the global economy, compounded by domestic structural constraints and inflationary pressures, resulted in a protracted slowdown."

The economic policy shoule be focusing on wide-ranging structural reforms to ease supply-side constraints and sector-specific incentives to boost demand, according to the report.

The report also lists out some priorities:

  • Revival of investment through acceleration in project clearances and
    streamlining of implementation procedures
  • Structural reforms that boost productivity are crucial for sustaining higher growth
  • Rejuvenating growth in manufacturing
  • Strengthening macroeconomic stability, which is predicated on fiscal discipline, manageable current account balance, and price stability
  • More employment from non-agrarian sector
  • Physical and social infrastructure, both urban and rural, that can accommodate and fuel robust growth
  • Farming sector growing at around 4% per annum

NOTE: 1bn Indian rupees are equivalent to £9.8m, €12.3m, $16.7m.

1.20 : Sensex up 80.77 points at 25525.58, Nifty up 29.50 points at 7614.50. Which is to say the markets are definitely disappointed. There is mostly nothing in budget to boost foreign investor interest.

1.15: Jaitley concludes budget speech

--Nothing on easing record high Gold import duties so far. Gold import duty has been hiked thrice to 10% by the previous government

1.10 : Tobacco and Cigarettes to get costlier. Excise duty on cigarettes hiked from 11% to 72%. And that's a huge hike!

-- Aerated Drinks to be more expensive as excise duty on colas hiked

1.05 : The lack of major reforms in the budget weighs on the markets, bringing the currency as well as the equity indices back in the red although the immediate response of Indian rupee and stocks was positive helped by the better than expected fiscal targets.

Boby Micheal takes a look.Indian ian Rupee And Stocks Fall In The Absence of Any Major Reform Move in Budget 2014

1.00 - Public Provident Fund savings limit enhanced from 1 lakh rupees to 1.5 lakh rupees. Overall, direct tax proposals disappoint in the backdrop of expectations of raising lower limit substantially.

12.50: 10-year tax holiday for power sector to continue

12.45: No changes in income tax rates; lower limit raised to 250,000 rupees from 200,000 rupees

- Education cess to continue; deduction under section 80C increased to 150,000 rupees from 100,000 rupees

- People can claim tax deduction for home loan interest payment upto 200,000 rupees, compared to the previous limit of 150,000 rupees

12.40: - 2bn rupees for power reforms and 5bn rupees for water reforms in Delhi

12.35: National Academy for Customs and Excise in Andhra Pradesh

-1bn rupees for commercial organic farming

-10bn rupees for rail connectivity in North East states

12.30: Linking Indian rivers: 1bn rupees to expedite preparation of detailed project report

-- Ganga Rejuvenation: 20.3bn rupees for integrated Ganga revival

-- NRIs: NRI Ganga fund to encourage NRIs to contribute to Ganga revival

-- Jammu& Kashmir: 2bn rupees for indoor and outdoor stadiums; Sports university in Manipur

12. 25 - 2.29tn rupees for defence. Modernisation of arms - increase capital outlay by 50bn rupees.

12.23 : To introduce single Demat Account for all financial transactions

--New India Accounting Standard for financial sector from fiscal year 2017

12.20: Government to allow international settlement of Indian debt instrument

-- 5bn rupees for RE energy projects in Rajasthan, Tamil Nadu and Ladakh

-- 100bn rupee fund for startup companies.

12.18: 5bn rupees for Ultra Modern Solar Power Projects.

-- Govt to add 15,000 kms of gas lines countrywide, in public-private-partnership mode, to reduce dependency on one energy source

12.10: 50bn rupees for scientific warehousing in fiscal year 2014-15

-- Jaitley also sets apart 8tn rupees for farming sector lending; 7% interest rates for farmers. Farmers to get additional interest rate incentive of 3% for timely repayment. Plan is to offer finance to 5 lac landless farmers.

-- Proposes a 100bn-rupee fund to meet the capital requirements of small and medium enterprises.

11:53: 5bn rupees for price stabilisation fund; this was part of the BJP Manifesto

11.52: Finance to 500,000 joint farming groups through National Board for Agricultural and Rural Development (NABARD).

11.51: Jaitley plans a second-green revolution, including a protein revolution

11.50: National Adaptation Fund for Climate change with initial corpus of 1bn rupees; will help agriculture to adapt change.

11.50: Jaitley is not well, he sits and continues budget speech

-- Stronger Fiscal Targets laid out by Arun Jaitley in budget 2014 drives a Rupee, Bonds and Stocks rally. Read Boby Michael takes a quick look -- India Rupee and Stocks Rally, Bond Yields Fall Sharply As Budget 2014 Sets Stronger Fiscal Targets

11.45 : Jaitley requests an 'unprecedented' five-minute break during budget speech, the House adjounred until 11.50. Analysts say the budget broadly disappoints markets so far.

11.42: Slum development included in corporate social responsibility

- 1bn rupees for modernisation of madrasas

11.36: 5bn rupees for new IITs (Indian Institute of Technology) and IIMs (Indian Institute of Management).

11.35: 1bn rupees allocated for 600 new and existing COMMUNITY RADIO stations

11:34: EDUCATION: 5bn rupees allocated to set up four more medical institutes, 5 new IITs and IIMs in India

Boby Micheal writes - India Budget 2014: Rupee, Dollar and Stocks Ahead of Arun Jaitley' Likely Hawkish Fiscal Steps

11:33: 70.6bn rupees to spent for 100 smart cities, says Arun Jaitley

11:32: 3.6bn rupees for safe drinking water over 3 years


11.30: New currency notes to assit visibly challenged persons, 1.5bn rupeees to increase safety of women in cities

11.30: 500bn rupees for SC/ST schemes (backward classes)

11.29: Rupee trims initial gains against US dollar as Arun Jaitley presents budget

11.25 : 2bn rupees for statue of unity in gujrat

- 70bn rupees to develop 100 smart cities

11.24: E-visas to be introduced in 9 airports

- AGRICULTURE: 10bn rupees to improve irrigation to fields as majority are rain-fed

- POWER : 24/7 uninterrupted power to rural areas

-- 5bn rupees to augment power supply to rural areas

11. 21 BANKING: Govt to sell shares in banks to retail investors. Public sector banks (PSU) shares will be sold to retail investors.Says need over 2tn rupees to fund PSU banks

-10bn rupees for irrigation.

11.20 : Jaitley observes the pace of migration from rural areas to cities is increasing. The PM has a vision of developing 100 cities as satellite towns to big cities.

11.18: Foreign Direct Investment (FDI) in Defense: Raised from 26 to 49% through Foreign Investment Promotion Board (FIPB) route

-- FDI in Insurance: Raised frm 26 to 49% through FIPB Route

-- 49% FDI in Defense production

-- FDI in manufacturing: no additinal approval is need for manufacturers for sale through retail outlets and ecommerce sites

11. 14: FM on Retrospective Taxation -- "We are committed to providing a taxation regime that will be investor firiendly ... expects foreigners to join economy with "renewed vigour".

FM says tax demand of 4tn rupees under dispute currently.

11.12: Budget on GST - FM says he has discussed the matter with statesI assure all states that Govt will be more than fare in dealing with them. GST will streamline tax administration.

Jaitley on Fiscal deficit

-Accepts 4.1% fiscal deficit target of previous budget sets target 3.6% for 2015-16 3% for 16-17

11.07: FM says fiscal prudence is needed. "We cannot go on spending today which will be financed by taxation in a future date."

-- Going forward, we should continue to be watchful of current account deficit (CAD).

11.05 am: Jaitley says he looks forward to lower rates of inflation and that there are green shoots of recovery in global economy. "Will leave no stone unturned in creating a vibrant and strong India."