The election of Narendra Modi as the new Prime Minister of India brings about a fresh stream of optimism into the country. According to Kapil Matta, Director of Marketing and Sales for MitKat Advisory, “India post-elections seems to be one of the most eyed destinations among emerging economic powers. There has been a b
The election of Narendra Modi as the new Prime Minister of India brings about a fresh stream of optimism into the country. According to Kapil Matta, Director of Marketing and Sales for MitKat Advisory, “India post-elections seems to be one of the most eyed destinations among emerging economic powers. There has been a buzz and an definite expectation of changes in the approach as well as reforms by the new Modi government.”
According to Matta, one of the key reforms that the new government will set forth are new budgets for the Indian industry. By transfusing the security market with a new influx of cash, the industries can be jump-started by creating new projects in different sectors. “Definitive emphasis has been put on sectors like infrastructure, agriculture, manufacturing, technology, and education,” Matta said.
To elaborate on the new budget and project sectors, Matta explained that a new group formed by the Modi government called the Project Management Group (PMG) is now focused on approving clearances for stuck projects. Along with the budget reforms which have promised tax exemptions of real-estate investment trusts and additional, infrastructure investment trusts, there is a long-term positive for attracting cheaper, long-term financing for commercial real-estate and infrastructure projects. The budget also relaxes the terms for issuance of debt funds used for infrastructure investments by banks and other international finance corporations.