Indian Budget 2006-07- Full Text
Full Text of P. Chidambaram, Minister of Finance, Budget Speech(Feb 28, 2006)
40. There is an investment boom in the country and it is necessary to maintain the confidence of investors. It appears that India is catching up with the high investment rates of East Asia and China. Honourable Members will notice presently that, in every sector, the attempt is to promote more investment.
41. Government is committed to a strong and effective public sector. Public Sector Enterprises (PSEs) have, through internal and extra-budgetary resources, investment plans amounting to Rs.122,757 crore in 2006-07. I am happy to announce that Government will provide equity support of Rs.16,901 crore and loans of Rs.2,789 crore to Central PSEs (including Railways). Besides, I wish to point out that in the two years of this Government, we have infused Rs.1,180 crore in cash and made non-cash sacrifices of Rs.2,566 crore to restructure ten PSEs, including Indian Telephone Industries Limited and Heavy Engineering Corporation Limited.
42. We believe that there is considerable scope for developing India as a hub for the gems and jewellery industry. I, therefore, propose to constitute an expert body that will look into the potential of this sector and the prevalent taxation practices in India and abroad, and make its recommendations in this behalf. I am sure this announcement will be welcomed by Non Resident Indians who are looking to India as the place for future expansion and growth.
43. Foreign Direct Investment (FDI) continues to play an important role. We have the opportunity to make India a manufacturing hub for textiles, automobiles, steel, metals, petroleum products etc. for the world market. In calendar 2005, up to November, 2005, FDI is estimated at $ 4 billion, without counting reinvested earnings and other capital. I am confident that recent policy changes will attract more foreign investment into the country, especially in infrastructure.