Highlights for Metals & Energy:
- Number of steps envisaged to deepen Indian financial market. Impact: Positive for Commodity Market.
- Considering the payment crisis in the National Spot Exchange Limited (NSEL), the subject was transferred to the Ministry of Finance and swift action was taken to sequester NSEL. In order to ensure there is no spillover of the crisis to the other regulated segments of the financial market, it has been proposed to amend the Forward Contracts (Regulation) Act to strengthen the regulatory framework of the commodity derivatives market. Impact: Likely to strengthen Commodity Market.
- Import Duty for Bullion remains unchanged. Market participants were expecting relaxation in import duty on gold in view of the persistent demand from gem and jewellery industry.
Impact: Positive for Bullions.
- 7 new airports are under construction. Impact: Positive for Metals.
- Cabinet panel cleared 296 projects by end of January: Impact: Positive for Metals.
- Several steps being taken to promote medium and small manufacturing units. Impact: Positive for Metals.
- Agriculture GDP growth increased to 4% during UPA II. In the current year it is estimated at 4.6%
- Estimates of production of sugar, cotton, and oils seeds point to a new record
- Agriculture exports likely to cross $ 45 billion
- Food grain production estimated at 263 MT against 255 MT last year.
- Agri credit to cross Rs 7 lakh cr
The full Budget for 2014-15 will be presented by the new government in June-July.