Salient points of India's Union Budget 2003 that might be of interest to the international business community are as follows:

Limit on Foreign Investment in banks raised from 49% to 74%. Peak rates of Customs Tariff reduced to 25% to come nearer to the structure of ASEAN countries.

Roads: US $ 8,000 mn. allotted for 48 new projects covering 10,000 km. This would be over and above the National Highway projects.

Railways: New projects worth US $ 1,600 mn. to be taken up. Customs Duty on Diesel locomotives reduced from 25% to 15%.

Sea Ports: Nhava Sheva and Kochi ports to be modernised at a cost of US $ 1,500 mn.

Airports: Joint Ventures to be formed for the modernisation of Delhi and Mumbai International Airports. Government to invest US $ 520 mn. as its share.

Power Sector: Equipment meant for Thermal generation projects of 1,000 MW and Hydr-electric generation projects of 500 MW capacity exempted from Customs Duty. Reduced from 25% to 5% on specified equipment for High Voltage Transmission.

Telecom Sector: Customs Duty on Telecom Networking equipment reduced from 25% to 15%.

Textiles Sector: Excise duty on Textile machinery reduced from 25% to 5%.

Water Supply: Capital Goods and machinery for Water Supply projects totally exempted from Customs and Excise duties. 100% depreciation granted on Water Supply and Treatment plant, machinery and buildings housing them.