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By:

Amey Chitale

28 October 2024 at 5:29:02 am

Growth Without Fireworks

The Budget leans on tourism, technology, trade calibration and fiscal discipline to anchor growth amid global uncertainty Mumbai: The new budget positions tourism as a key driver of jobs, forex earnings, and local growth. Incentives will back indigenous seaplane manufacturing through a Seaplane VGF Scheme, while a new National Institute of Hospitality will strengthen academia-industry-government linkages. A pilot programme will upskill 10,000 guides at 20 iconic sites with IIM collaboration,...

Growth Without Fireworks

The Budget leans on tourism, technology, trade calibration and fiscal discipline to anchor growth amid global uncertainty Mumbai: The new budget positions tourism as a key driver of jobs, forex earnings, and local growth. Incentives will back indigenous seaplane manufacturing through a Seaplane VGF Scheme, while a new National Institute of Hospitality will strengthen academia-industry-government linkages. A pilot programme will upskill 10,000 guides at 20 iconic sites with IIM collaboration, and a National Destination Digital Knowledge Grid will document cultural and heritage sites. Heritage tourism will be enhanced with experiential upgrades at 15 archaeological sites, and new projects will expand the Buddhist circuit in the northeast. Seven High-Speed Rail corridors will serve as sustainable ‘growth connectors,’ boosting mobility and linking emerging hubs. Software services, IT-enabled services, KPO, and contract R&D are consolidated under ‘Information Technology Services’ with a uniform safe harbour margin of 15.5 percent. The safe harbour threshold rises from Rs. 300 crore to Rs. 2,000 crore, easing compliance for mid-sized firms. To spur investment in critical infrastructure, a tax holiday until 2047 is offered to foreign companies delivering global cloud services via Indian data centres, provided domestic customers are served through Indian resellers. This landmark measure positions modern data centres as central pillars of India’s digital economy and future growth. Key Reforms Income tax rates remain steady but introduces key compliance reforms. TCS on foreign travel and education is reduced to 2 percent, and TDS rules for manpower services have been simplified. Taxpayers can now file Form 15G/15H directly through depositories, easing coordination. Penalty provisions are de-criminalised, with many shifted to late fees. While broader capital gains rationalisation was anticipated, relief comes through treating buyback proceeds as capital gains, lowering the tax burden for recipients. Trade-friendly customs duty reforms find place instead changes rather than sweeping reforms. The duty-free import limit for seafood export inputs rises from 1 percent to 3 percent of turnover, with similar relief extended to shoe uppers. Exporters of leather, textiles, and footwear gain flexibility as the export period is extended to one year. To encourage domestic value addition in consumer electronics, specified parts for microwave oven manufacturing are now exempted. The recommendations of 16th Finance Commission have been accepted by the centre which recommended 41 percent devolution. Budget 2026 reaffirms the government’s commitment to fiscal consolidation while safeguarding social priorities. The debt-to-GDP ratio is projected to decline from 56.1 percent in 2025–26 to 55.6 percent in 2026–27, freeing resources for priority spending by lowering interest outgo. The fiscal deficit target has been met at 4.4 percent of GDP in 2025–26 and is estimated to further ease to 4.3 percent in 2026–27, in line with the path toward a 50±1 percent debt-to-GDP ratio by 2030–31. Revised estimates for 2025–26 place non-debt receipts at Rs. 34 trillion and expenditure at Rs. 49.6 trillion, including Rs. 11 trillion in capital outlay. For 2026–27, receipts are projected at Rs. 36.5 trillion and expenditure at Rs. 53.5 trillion, with net tax receipts of Rs. 28.7 trillion. The government is banking on higher RBI dividends and higher disinvestment receipts. Fiscal deficit financing will hinge on Rs. 11.7 trillion in net market borrowings, supplemented by small savings and other sources, with gross borrowings at Rs. 17 trillion. Successful execution will decide if the budget’s ambitions become reality. This year’s strategy favours actions over numbers, consolidating and reinforcing the ecosystem instead of chasing headline reforms. Amid geopolitical tensions and market volatility, it prioritises stability and durable growth over quick wins - less a Sehwag-style first-ball six, more a Rahul Dravid innings: deliberate, resilient, and built for the long haul.

Dangerous Departures

Updated: Oct 30, 2024

Dangerous Departures

In yet another shocking incident adding to Mumbai’s infamous tryst with stampedes, chaos erupted at Mumbai’s Bandra Terminus following a weekend stampede that left at least ten persons injured, two critically so. A crowd surged toward the Gorakhpur-bound train with nearly 1,500 people vying for seats in 22 unreserved compartments, leading to the stampede. Several others narrowly avoided tragedy, with some even pushed onto the tracks. This is not a unique episode but rather a recurring theme in Mumbai’s bedevilled crowd management, one that has haunted the city’s public spaces, particularly as festive seasons magnify the crowds.


Mumbai is no stranger to stampedes. A horrifying incident in 2017 at Elphinstone Road Station left 23 people dead and nearly 50 injured. The cause was a familiar one: an overwhelming crowd confined to a narrow footbridge during peak rush hour. The tragedy sparked an outcry, with promises from authorities to upgrade infrastructure and enhance safety protocols. Yet seven years on, crowd-related incidents continue to be a constant danger. Today’s incident reveals a similar lapse—a lack of foresight in managing the thousands who gather on platforms ahead of Diwali, eager to return to family. That the Gorakhpur Express was unreserved and heavily crowded was predictable.


The issue lies beyond simply crowd density; it is emblematic of deeper systemic negligence. The Brihanmumbai Municipal Corporation (BMC), responsible for local public safety, along with the Railways Ministry, bear responsibility for ensuring order at such high-risk hubs. Although the BMC acknowledged the “festive rush,” it appears little was done to pre-empt it. Swift action could have been taken to either disperse the crowd or reroute passengers. Instead, chaos prevailed.


Political reaction has been swift but uninspiring. Aaditya Thackeray, son of Uddhav Thackeray, launched a scathing attack on the Union Railways Minister, Ashwini Vaishnaw, branding the incident a result of the minister’s “incapable” leadership. This hardly addresses the immediate need: a substantive plan to manage crowds and prevent similar incidents.


Mumbai’s transport infrastructure remains sorely outdated. Platforms are undersized, signalling systems frequently falter, and crowd control mechanisms are grossly inadequate. Despite repeated accidents, there has been little investment in comprehensive crowd management systems or the deployment of personnel trained in emergency response. While railway footbridges were widened after the Elphinstone tragedy, Bandra’s incident demonstrates that such incremental changes are insufficient. Mumbai, which sees a swelling populace during festivals, demands a robust strategy to address its vulnerabilities. This should include technology-driven crowd monitoring, clear communication channels to inform passengers of platform conditions, and additional security and medical staff on high-demand days. It is essential that crowd management training for personnel becomes a priority rather than a reaction to tragedies.

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