Indian Budget 2020 General Overview and Its Impact on Nepalese Economy

• Indian Finance Minister presented INR 30.42
trillion budget for FY 2020-21
• The comparative expenditure plans for upcoming
budget shows that the size of Indian budget is 35.7
times the Nepalese budget
• Among the top 30 Nepali items, export tariff for 28
of them is expected to rise
• The Indian budget has aimed at promoting the use of
Electric Vehicles. This could encourage the
production of EVs and reduce the costs as well.
• Foreign aid commitment went down by one third as
compared to the revised figures for foreign aid that
India provided to Nepal in the current fiscal year
• Any reduction in the cost of production of Indian
agricultural produce is likely to affect Nepali farmers
adversely
• Improvement in Doing Business ranking in the
recent years and the decision to reduce the corporate
tax rates is likely to boost the FDI inflows to India