Budget 2023: India will shine in the eyes of investors with this budget, know who has to say – India will shine in the eyes of investors with this budget know who has to say
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New Delhi: In a troubled world, only a few countries seem to be in a better condition at this time. India is one of them. Many such announcements have been made in the budget, which will give a boost to the economy and make India an even more attractive destination for investors. Tax concessions have been given to Startups and Medium and Small Enterprises along with simplification of tax related rules. Such steps were needed. Apart from this, steps like using PAN as a basic document and increasing the scope of DigiLocker will increase the speed of digitization and ease of delivery of financial services.
Raising the tax rebate limit to Rs 7 lakh will help people with low incomes, especially considering that the cost of running a household has gone up. Taxation has been simplified with the reduction of income tax slabs to 5. Overall, steps have been taken to improve the taxation structure.
Since my work is related to capital markets, let me talk about that. Some interesting changes have been made here as well. SEBI will now have the authority to set standards for financial education in the National Institute of Securities Markets. Under the Liberalized Remittance Scheme, the rate of tax collection at source on transfer of money was 5 percent, it will be increased to 20 percent. This will impact platforms that facilitate investments abroad and serve international crypto investors. Apart from this, the tax picture on market linked debentures has been cleared. Now they will be treated as dead securities and will be treated as short term capital gains instead of long term capital gains. This will mainly affect high net worth individuals.
Now the question is, what does this mean for investors?
Looking at the macro level, the deteriorating economic environment across the world is causing concern. If the situation worsens, then India will also be affected, but comparatively India’s condition will remain fine. However, in the long term, I would bet on India growing stronger. Apart from simplifying regulations and taxation, these measures to promote entrepreneurship and attract foreign investors in the country will lead to good economic growth.
If you are investing for the long term, then you should not make investment decisions based on the budget. If the condition of the economy is good with all these measures, then its effect will be seen in the profits of the companies and then also in their share price.
Four things you should keep in mind while making an investment decision
– Focus on increasing your knowledge and skills. This will help you earn more and invest more.
Build a diversified portfolio for the long term. That is, instead of investing mostly in a single sector or a single stock or a single asset, invest in different strong sectors and assets.
Make a judicious allocation across equity, bonds and gold.
Stick to your investment plan and increase your investment regularly.
(The author is Founder and CEO, Zerodha)
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