The Government announced several Measures for Stimulating Growth in the budget proposals for 2017-18. A concessional with-holding rate of 5% is being charged on interest earned by foreign entities in external commercial borrowings or in bonds and Government securities. This concession is available till 30.6.2017. The Finance Minister proposed to extend it to 30.6.2020. This benefit is also extended to Rupee Denominated (Masala) Bonds.

The Government gave income tax exemptions to Start-Ups with certain conditions last year. For the purpose of carry forward of losses in respect of such Start-Ups, the condition of continuous holding of 51% of voting rights has been relaxed subject to the condition that the holding of the original promoter/promoters continues. Also the profit linked deduction available to the start-ups for 3 years out of 5 years is being changed to 3 years out of 7 years.

Considering the wide range of use of LNG as fuel as well as feed stock for petro-chemicals sector, the Finance Minister proposed to reduce the basic customs duty on LNG from 5% to 2.5%.

In order to incentivise domestic value addition and to promote Make in India, he proposed to make changes in Customs & Central Excise duties in respect of certain items in his speech. Some of these proposals are also for addressing duty inversion.

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