The new government’s plan for a prosperous India has been communicated well in the Union Budget announcement where measures for the growth of the country with a sound economy were portrayed. The key takeaways for investors from the Union Budget 2014 were:
Change – Relaxing the pressure for banks on regulatory mechanisms like CRR, SLR etc; changes in tax law and most importantly measures announced to encourage long term investment with reducing limits on the housing.
Commitment – The government’s focal commitment to fiscal consolidation in the medium term regardless of external condition influences.
Confidence – Tax incentives to bolster investment opportunities, support the manufacturing sector and impetus to REITs (Real Estate Investment Trusts) and infrastructure funds would give confidence to investors all along the way.
Currently, the need of the hour in India is to revive the investor confidence (both short term and long term investors) and the government in their Budget ensured that required steps are taken in that direction.
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