Budget 2020 Expectations: Government Should Focus On Real Estate And Infrastructure, Mihir Vora Says

The finance ministry led by Nirmala Sitharaman needs to focus on measures around the real estate and infrastructure sectors to boost the flailing economy and, subsequently, the market.

That’s according to Max Life Insurance Co. Ltd.’s Chief Investment Officer Mihir Vora, who said the need of the hour is GDP growth and structural reforms.

“My sense is that the government should tweak the limits for interest exemption for real estate and infrastructure bonds can be given much more relief in terms of tax breaks,” Vora told BloombergQuint in an interview. “I think those are the kind of reliefs that will structurally bring us back into the game.”

Speaking about the measures needed to boost demand, Vora said tax relief for the lower income levels, and low-cost housing and cars would give the needed boost. He, however, doesn’t expect the government to roll back the long-term capital gains tax.

Key highlights of the interview:

• Expect the budget decisions to be investor friendly.
• Don’t see scope for LTCG to happen in this budget.
• We need GDP growth and structural reforms.
• Real estate and infrastructure need to be the key areas of reform in Budget 2020.
• Consumer staples should see a reform with rural growth picking up.
• Government needs to reduce stamp duties, increase income tax interest limits to boost realty.
• We need demand revival in the real estate sector, AIF scheme is not enough.
• Companies in life insurance sector with consistent growth will continue to do well.

Also Read: Budget 2020: Is It Realistic To Expect Changes To Personal Income Tax Rate?

WATCH | Max Life Insurance CIO Mihir Vora’s Budget 2020 Expectations