International Monetary Fund chief, Christine Lagarde during her visit to New Delhi said the global economic slowdown has presented many lessons. The financial and real estate sectors are the prime causes of the global financial crisis, she added.

"Whether it is China or India, the financial sectors and the financial institutions have to be strong, have to be agents for growth and not a threat to growth," she added.

Pleased with India's reforms , Lagarde said that strong economic policies and prudent supervision of the financial sector have allowed the government to limit the direct impact of the crisis on the economy and the financial system.

India has established itself as a leader on the international economic stage and has navigated the global financial crisis well, Lagarde said in an interview to PTI.

Referring to the financial crisis in the Euro zone, the IMF chief said concerted efforts by some European nations and the European Central Bank (ECB) had pulled the continent further

Budget Provisions

• Personal income tax exemption limit for general category raised to Rs 2 lakh from Rs 1.8 lakh. Upper limit raised from Rs 8 lakh to Rs 10 lakh for 20% tax bracket.

• Service tax rate raised from 10% to 12%.

• The official amendment to "The Insurance Laws (Amendment) Bill, 2008" will be moved in this session of the Parliament.

• It is proposed to reduce the threshold of premium payable to 10% of the actual capital sum assured from 20% of the actual capital sum assured.

• It is proposed to amend the provisions to provide that the deduction for life insurance premium as regards insurance policies issued on or after 1st April, 2012 shall be allowed for only so much of the premium payable as does not exceed 10% of the actual capital sum assured.

• Within the existing limit for deduction allowed for health insurance (Rs 15000 for individuals and Rs 20000 for senior citizens), deduction of upto Rs 5000 allowed for preventive health check-up

• Setting

The leather industry is thankful to the Hon'ble Union Minister Finance for announcing certain major schemes for the benefit of the leather industry in the Union Budget 2012-13.

Budget Provisions:

• Setting up of dormitories for women workers in the 5-mega clusters relating to handloom power looms and leather sectors.
• The exemption limit of Central Excise duty available to non-leather footwear is being increased from MRP Rs 250 to Rs 500.For non-leather footwear exceeding Rs 500, the applicable duty is increased from existing 10% to 12%.
• The rate of service tax is being increased from 10% to 12%.
• The basic excise duty enhanced from 10% to 12%.
• Exemption of Service tax has been extended with retrospective effect from 16.6.2005 to the Common Effluent Treatment Plants (CETPs) set up with the assistance of Central or State Government in the leather industry.

Budget Impact:

Enhancing the limit of excise duty exemption for non-leather