Budget 2018 – A Floodgate of Opportunities

There has never been a better time for business in India than now. For the past few years the upward trend on inclusive growth and development has opened the doors to investors from far and wide. India has raced ahead with a quantum leap in the ‘Ease of Doing Business.’ The current Modi government has received accolades for its commitment towards the country’s development be it in the field of infrastructure, renewable energy, defence manufacturing, tourism, railways, telecom, or any other sector for that matter.

Reforms for Better Investment Opportunities

The Budget presented this year brings with it countless progressive measures to be undertaken in different sectors. India has become the most sought-after country in the entire world for investment owing to the strategic amendments in 21 sectors that cover 87 areas of FDI policy over the past three years. Those keen on investing in India can get a holistic financial arrangement by the long-term plans on the growth of the economy from the Union Budget for the year 2018. With the Rail Budget merged with the Union Budget, the perspectives become even clear on the scope and ways of investments.

The budget 2018 becomes a critical platform to empower and grow businesses across the nation and scale them towards the growth of the nation, giving employment and engagement opportunities to the vibrant youth at the same time. India is home to the largest youth pool in the world, therefore, the growth opportunities also multiply. The per capita income in India is expected to increase by 125%, making it the largest consumer economy by the year 2025. By the same year, the expected skilled workforce is also said to increase to a gigantic 800 million.

Scope of Investment

This year’s budget brought with it a long-term capital gains tax of 10%. This is in addition to the already existing a long-term capital gains tax of 15%. With an eye to raise Rs 200bn, the budget aim to use this money to fund various key schemes.

Foreign investors may look at several opportunities to invest in India, given their scope and interest. For instance projects connecting the country and world include waterways, railways, roads, ports, or airports are a good investment where the country is looking at a partnership investment of Rs 50,000 bn.  Infrastructure is open for 100% FDI and can be seen as a great opportunity to be a part of rail electrification, or airport infrastructure. Another immensely gaining opportunity is the food processing sector which has a doubled budget allocation this year. There are 42 proposed food processing zones providing a huge market in the fast growing working middle class segment.

In the value chain too, foreign investors can look at being a part of several avenues like raw material sourcing, contract farming, creating Amazon-like network creating a link between the farm and food retail. Another great opportunity in this sector is the global supermarkets outsourcing from India.