Theme – Connectivity , Shelter , Assurance , Women , Rural , Social
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Road – GRAM SADAK
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Rail – Infrastructure enhancement
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Air – UDAAN
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Inland Water ways – NADI
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Gas – URJA
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Safe Drinking Water – PANI
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Metro – Urban connectivity
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Rural Assurance – MGNREGA
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Rural Sanitation
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Shelter – Affordable Houses in shorter period (AWAS)
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Assurance – Karam Maandhan ( Pension ) & Rural Assurance – MGNREGA
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Women – Mahila Mudra – Women entrepreneurship
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Digital – Less Cash More Digital Facilitation
High on Intent – What matters is Execution to balance the equation
Who gives – Resource mobilisation
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External Borrowing – Foreign inflow in forms of loans to Govt of India
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Big Advantages
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domestic money market will not be disturbed and funds would be available to fund private borrowing
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funding received at lower interest rates
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domestic interest rates will ease and that will fuel private investment
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Fiscal Deficit reduced to 3.3% from 3.4%
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One disadvantage is unfavourable exchange rate but this is only possible if economy remains weak relatively . Hence that is a risk worth at this stage of the economy .
2. Tax Increased for Taxable Income above Rs 2 Crore & Rs 5 Crore
3. Increased Tax Collection – Dependent on Revival of Economy -if above measures can kickstart the economy and ignite animal spirit this would be the way forward
4. Disinvestment in PSU – through CPSE ETF -Eligible Sec 80 C
5. Relaxed FPI – Foreign Portfolio Limits & NRI Limits to attract foreign funds
Structural – Resource utilisation
Improving liquidity in the system by allowing banks to purchase Quality Assets from NBFC
INR 70000 Crore – Further Recapitalising Banks
INR 60000 Crore – MNREGA
INR 15500 Crore – SADAK
Tax Incentives for Housing Sector
Our Take
Head room is limited for the economy without investment in the economy to expect wonders is far fetched . A consumer finally works in an industry and industry should be confident to invest to benefit the consumer in the long run . Stock Market being upset is actually a good sign since my firm belief is stock market has become too short term focus , just like quarter to quarter results of company , someone wanting to do great work is not encouraged for want of results , we tend to ignore the fundamental premise that results is a by product of the efforts which are strategic in nature . US is US where it is only because a long term view which happened back on 1970’s under great leadership . Today we have potential but throttled with capital scarcity , poor labour laws and costly land as key factors of production
A country of an India Size and the population inclusive growth and improving lives and thereby per capita income is going to reap long range benefits .
Stock market is not a true barometer , what is real is the inclusive growth and broad based growth hence we see a polarised market with only top 50 companies and among them only 7-8 companies doing phenomenally great and having higher weights just firs the sensex but this is not growth in real sense . Expectations have to be sobered on investment expectations , wrong expectations will lead to more risk taking thereby damaging capital formation and destructing capital in the process .