Direct Income Support of Rs. 6K per year to farmers with a land holding of 5 acres (2 hectors), would benefit 12 Crore People. In addition, it was announced that MSP will be increased to 1.5 times of cost of production for 22 crops (many new).
Impact: These along with substantial funds allocated for rural development and to create new jobs is a +ve direction and will re-vitalize the rural economy, though the support given was not substantial but is in the right direction.
Special focus on housing is a great move for the real estate sector, both on the builder / developer side and the house owner / investor side, which was otherwise not so great in last two years due to RERA & GST impact. Stocks in Housing sector will see good traction in selling their unsold inventory and initiating new projects while this is highly depending on the Location.
New funds allocation from 20K Cr to 305K Cr to Defense to secure Indian borders, is a great news for the associated industries & Defense PSUs.
Hon'ble Finance Minister Mr. Piyush Goyal made a delicate balance between people's expectations and fiscal prudence. While opportunities are explained above, the challenges are in the fine print on how well the ministry reaches its planned tax collection.
- Prepared by Team EZTax.in