Mr. Sunil Nyati, Managing Director of Swastika Investmart Ltd
The market wants a Budget that should be reformist and pro-growth where last year's Budget headed in the right direction, therefore, we need further momentum to reforms and growth in the upcoming Budget.
We hope that the government will maintain its fiscal expenditure high with a focus on infrastructure. Though there were several announcements for the infrastructure sector and that need to be continued, however, there is a need for some significant measures for the real estate and auto sector to create multiplier effects because these two sectors create jobs and growth in multiple sectors.
Government should increase the tax benefits for housing loans because it is almost at the same level for the last many years. There were many steps taken by the government in the last 1 year to boost the economy but there was no direct focus to boost consumption therefore the market will like to hear some significant announcements for salaried class.
The market will also like more clarity and pace in the government's asset monetization and divestment program. The world is facing many supply-side issues and India can turn some challenges into opportunities therefore the government should focus on some areas in the upcoming Budget.
In terms of taxation related to the stock market, I believe STT should be removed or at least reduced because initially it was introduced in the place of long-term capital gain but now, we have both LTCG and STT that is not fair for the Indian Investors. Stock market penetration is increasing in India and it is anticipated that the government will take policy measures to ensure that the Indian market becomes more investment-friendly in comparison to other emerging markets where reducing LTCG and STT could be a good step in that direction. The transaction cost in India is too high and LTCG and STT are seen as a sentiment dampener for the market.