POLICY HIGHLIGHTS

Digitized India

Central Bank Digital Currency (CBDC)

With the introduction of India's only digital currency, Central Bank Digital Currency (CBDC), India joins the elite club of a handful of countries with a digital currency. CBDC is expected to give impetus to India's digital economy leading to a more efficient and cheaper currency management system.

The Reserve Bank of India (RBI), the RBI is set to introduce the Digital Rupee beginning financial year 2022-23. RBI Act will be amended to include the definition of "bank notes" which will comprise physical as well as digital form of currency.

Digital Banking Units (DBUs) and digital payments

75 DBUs are proposed to be set-up by Scheduled Commercial Banks. The financial support for digital payment ecosystem will continue in 2022-23 and there will also be a focus to promote use of payment platforms that are economical and user friendly.

Scheme for taxation of virtual digital assets

Mindful of the increase in transactions in virtual digital assets, these digital assets have been brought under a specific tax regime whereby

  • Income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent.
  • No deduction in respect of any expenditure or allowance will be allowed while computing such income, except cost of acquisition.
  • Loss from transfer of virtual digital asset cannot be set off against any other income.
  • In order to capture the transaction details, payments for transfer of virtual digital asset will be subject to TDS at the rate of 1 per cent of the consideration above a monetary threshold.
  • Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient.

Post Offices

100 percent of 0.15 million post offices will be brought under the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and providing online transfer of funds between post office accounts and bank accounts. 

Ayushman Bharat Digital Mission

Under Ayushman Bharat Digital Mission, an open platform for National Digital Health Ecosystem will be established. This platform will consist of digital registries of health providers, health facilities, unique health identity, consent framework, and universal access to health facilities, 

A National Tele Mental Health Programme will also be launched to provide access to quality mental health counselling and care services.

e-Passport

Issuance of e-passports using embedded chip and futuristic technology to be rolled out to enhance convenience of overseas travel.

Agri-tech start-ups

For delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of agri-value chain, a scheme in PPP mode will be launched. Use of 'Kisan Drones' will also be promoted for crop assessment, digitization of land records, spraying of insecticides, and nutrients.

Clean & Sustainable India

Policy announcements towards clean energy and low carbon development strategy are driven by PM Modi's statement at the COP26 summit in Glasgow last November, "what is needed today is mindful and deliberate utilisation, instead of mindless and destructive consumption."

Solar Power

To facilitate domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, additional allocation has been announced for Production Linked Incentive Scheme announced in April 2021 for manufacture of high efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules.

Circular Economy

The Circular Economy transition plans for ten sectors such as electronic waste, end-of-life vehicles, used oil waste, and toxic & hazardous industrial waste are already ready. The focus will now be on addressing issues of infrastructure, reverse logistics, technology upgradation and integration with informal sector. Changes will be announced in regulations, extended producers' responsibilities framework and innovation facilitation.

Transition to Carbon Neutral Economy

Five to seven per cent biomass pellets will be co-fired in thermal power plants resulting in CO2 savings of 38 MMT annually. In addition to clan energy, this will provide extra income to farmers, job opportunities to locals and help reduce stubble burning.

Energy Service Company (ESCO)

Energy efficiency and savings measures will be promoted in large commercial buildings through the ESCO business model. It will facilitate capacity building and awareness for energy audits, performance contracts, and common measurement & verification protocol. 

Battery Swapping Policy

A battery swapping policy is proposed to be brought out and inter-operability standards to be formulated. Further, the private sector will be encouraged to develop sustainable and innovative business models for 'Battery or Energy as a Service.'

Green Bonds

As a part of the government's overall market borrowings in 2022-23, sovereign Green Bonds will be issued for mobilizing resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.

Green clearances

PARIVESH – A step towards single window green clearance has been introduced. The scope of the PARIVESH portal will be expanded to provide information to the applicants based on location of units and other specific approvals.

This will enable application for the following approvals through a single form and tracking of the process through a Centralised Processing CentreGreen (CPC-Green):

  • Environment
  • Forest
  • Wildlife

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