The clamor and commotion over the long awaited Indian Budget for the year 2014-15 ended last week, with the arrival of the new government’s intense budget. This budget has led the Indian people wondering whether it is an indication of the era of growth and development in the country.
The Budget 2014-15 seems to have certain clearly stated objectives. It even gives the government a commitment of a huge disinvestment program. It brings an enormous amount of spotlight on the invigorating investments on the primary infrastructure sectors. In addition, it also encourages the inflow of overseas capital into the country via the route of FDIs and portfolio. This is due to the various changes taking place in the investment stake ceilings, and elucidation of the dubiousness.
The corporate sector too has witnessed many new incentives in general, relating to investments. This will be in terms of warehousing, and tax breaks on investments in the capital goods, etc. We can observe the ‘no hike in the corporate tax rates ‘as an optimistic move.
Infrastructure that has been quite-a-big under-performer in the last three years could now see a revival in its activity. Infrastructure and the associated industries include of construction, steel, shipbuilding, manufacturing of power equipment and capital goods, specialized finance institutes, etc. A bounce-back in these could mean now using the vast sums productively that were stuck in the stalled projects.
The budget also offers to bring promising projects in the public-private-partnership or the PPP. Therefore, a point worth noting will be about the banks’ lending capital to infrastructure projects. These will reduce the problems arising due to the mismatches caused due assets and liabilities.
The housing sector can also expect to receive a jump. With the enhanced tax-break, the interest deduction increases for mortgaging of a self-occupied house. Another sector to be in the doldrums, i.e. the real estate, could also see a rebound. Amidst the unrealistically high expectations, we can anticipate the profiting impact of the union budget on the stock market to be as positive.
Pertaining to the current situation, saving money could be a tough and challenging task. Therefore, investment will become a crucial and unavoidable task that the common person needs to unmask with a lot of skill set and knowledge.
For people enthusiastic about making investments in the Indian stock market, it is very important to be well aware of its challenges as well as opportunities. We perceive the market situation to never be the same or consistent. It is always observing highs and lows. Thus, it becomes necessary for the traders and stock market investors to learn the market skills via virtual investments in a stock market simulator, such as www.moneypot.in
Article By:-
Preeti Gurbani
Ashish Kumar
CAclubindia
