Views on Budget by Dr. Nirakar Pradhan, CIO, Future Generali India Life Insurance

Dr. Nirakar Pradhan, Chief Investment Officer, Future Generali India Life Insurance on today's budget announcement.

"The maiden budget of our new Finance Minister clearly addressed three vital aspects of economy: adhering toFiscal Discipline, boosting Investment climate and reviving Growth.

- Despite the challenging macro environment, the FM has kept the Fiscal Deficit within 4.1% for FY 2014-15 as envisaged in interim budget in February 2014.

- He has raised personal income tax exemption level from Rs 2 lakhs to Rs 2.5 lakhs, hiked interest rate deduction limit on home loans from Rs 1.5 lakhs to Rs 2 lakhs and increased investment limit under Sec 80 C from Rs 1 lakhs to Rs 1.5 lakhs. This will help in channelizing household savings for industry, infrastructure and housing. Also hike in FDI limit in Insurance and Defence sector from 26% to 49% would bring in much needed long term capital to respective industry.

- Incentives for REIT, benefits for long term infrastructure loans and allocation of Rs 37,000 crores towards road projects etc are measures to revive real estate and kick-start infrastructure projects."

Source : Equity Bulls

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