The Union Budget 2015 has been hailed as a pro-growth budget by many in the industry. The budget has something for everyone, right from the common man to the corporates. This budget is expected to give a much needed boost to the Indian business sector which makes equity market as a great investment option for long term investors.
Ravishankar, co-founder, Scripbox.com share his views on what this budget means for retail investors. Do let us know in case you require further insights from Ravi regarding the Union Budget 2015.
“The Union Budget 2015 is pro-growth and inclusive in nature. Indian economy is poised to enter a phase of high growth with the GDP expected to grow strongly in the coming years. As per the Economic Survey, the economy is all set to grow by 8.1-8.5% in 2015-16, up from an estimated 7.4% in the financial year ending March 2015. This growth would be possible only when the Indian business sector exhibits substantial growth and expansion.
To provide an incentive to the Indian business sector, the Finance Minister has committed to reducing corporate tax rates from 30% to 25% over the next 4 years. The Make in India campaign is expected to see the corporate sector benefiting from a pro-business environment. The Budget also seeks to encourage retail investors to move their savings from traditional investment options such as gold, to instruments which would foster the real economic growth. Introduction of infrastructure and gold bonds would ensure that savings are channelized into projects which would further strengthen the economy of the country.
All these reforms would ensure a great boost to the Indian business sector. In the current scenario, equity markets emerge as a viable investment option for the long term investors, especially for those looking for inflation beating /tax efficient investor avenues. Retail investors should look more keenly at the equity markets to be a part of this growth trajectory. Investment in mutual funds would be the most viable option for investors who are wary of direct exposure to the equity markets due to lack of expertise, time or any other reasons.”