Indian Budget Wishlist

 

1. Regulation on real estate. Stop loan restructuring and bring down prices so as it does not become too expensive for common man and industry projects on IRR basis. 

2. 90 days clearance single window for Industry Projects

3. Agri Supply Chain Invest. PPP model should be deployed for investing in cold chain storage, investments in large scale farming, higher fertilizer production, advanced studies in farming techniques and minimize dependence on seeds and help outside. Need to open up Retail sector to an extent across Indian territory.

4. GST

5. Invest in making Judiciary & esteemed Police hi tech & accountable

6. Disinvest from non core govt.assets

7.Give PSU's boards more power & list them on stock exchanges

8.Reduce Subsidies & deficits. Why to subsidize entire nation for their use of petrol,Diesel & other necessary things. Why 15% of population which pays tax has to subsidize 100% population’s daily petrol usage. Its a 1950’s policy. Let people face reality and use profits to subsidize below poverty people directly through UID. 

9.Develop Bond Mkt.

10. Invest in Education for purpose & make it hitech & well connected to all Unified India. Improve Govt. Schools.

11. Tax the rich more, tax the poor less, reduce effective tax on corporates as they are already generating jobs & increase the tax net to every person earning in this country. Why should Indian citizens pay 100 types of taxes, make them as streamlined and less no. of tax sheets so that everybody feels willing enough to pay income tax and be proud of using all types of govt. services.  

Indian Real Estate – Govt. Created Bubble ?

 

Indian Real Estate is an example of a bubble created by govt. policies. Indian Real Estate is provided a number of benefits which has indirectly reduced supply while demand has continuously increased resulting in spiraling Sale prices and consequently expensive projects for end buyers or users. This in turn increased cost of projects of many industries such as retail and families in turn hurting their EMI’s.

Let’s look at the benefits :

1. Tax Rebates on investment in real estate :  Why to give any benefit to any developer ?

2. Loan restructuring ? Why is loan restructuring allowed by banks to these developers. They artificially keep sales low and prices high resulting in headache for banks and high cost of projects for end user. Let the supply keep on coming in and let developers keep continuous projects rather than keeping old projects at high prices and making a bubble.

3. Lack of transparency : There is no Regulator for this sector and there is complete lack of transparency of source of money involved in any project and also on accountability for poor construction also. If a building falls or bridge falls, there is no system similar to class action suits outside India.

4. No tab on black money involved : We all know Real estate is the easiest source of black money in India. How can when our own pan wale knows how can he circulate his cash into real estate, the govt. can continue to sleep over its 50 year old system to monitor real estates. The mere fact of increasing stamp duty and imposing service tax will just go on increasing cost of project but will not basically address the basic regulation, demand supply gap and accountability in the sector.

5. All listed companies in Stock Market: No layman in Stock market can actually decipher the value of a real estate stock simply because of lack of transparency in this sector. This results unfair valuation of the listed company which is bad for the company and for the investor also. Govt. Should bring in some steps to ensure that cost of real estate remains profitable for developers and affordable for many decades for the end user also so that industry can plan their capex on the basis of this.

Baltic Dry Index Data

The Baltic Dry Index is a daily average of prices to ship raw materials. BDI has been on steady downward trend and is slated to continue to follow the trend which will continue to be negative for shipping sector.