The principle features of the Indian Iudgot, presented by Mr. T.T. Khrishnamachari, were vastly increased defonce expenditure (nearly 1/3 of total expenditure), new taxation incentives for foreign investment, and a reduction in personal taxes. The minister laid special stress on the private sector of the economy, saying it must be estab.” lished on "an enduring basis in the space assigned to it, to attract individual saVings and to develop managerial skills.
In the ficld of company taxation, which naturally affocts foreign investment, tho main concessions were to replace the super-profits tax by a surtax; a reduction in the standard rate of corporate tax for cortain industries, and a reduction of the intorcorporate dividend tax. There will be a general reduction in rates of personal taxation for both Indians and foreigners, and changes are also announcod for personal Capital gsins. Total revenue was estimateodat £1570m., and expenditure at £1530m. Defence expenditure, howover, will reach £539m.