Please ignore my earlier mail - Reliance Money Budget Wishlist

Hi,

This is with respect to your section Budget Line and my below mail.  

Please find below Mr. Sudip Bandyopadhyay's (Managing Director, Reliance Money) budget wishlist and photograph as required.  Also below is a brief about Reliance Money for your reference.

Regards,

Tamanna Khanna
Corporate Communications
Reliance Money
Tel: +91-22-3046 2300 I Mobile: +91-93236 09510

Budget Expectations
I. "The government should kick start infrastructure spending in a big way by creating a separate tax exemption category for infrastructure bonds."
The single largest problem facing India on its path towards economic glory is the lack of adequate infrastructure.  Every area of our economic endeavor – be it agriculture, industry or services, is suffering seriously due to the absence of adequate infrastructural support.  There is a crying need for the government to take vital steps in this direction.  Massive infrastructure spending at this stage will set in motion a huge virtuous economic chain reaction which would definitely benefit the overall economy significantly.  However, the government desperately needs funds for financing infrastructure and other developmental requirements and there already exists a huge fiscal deficit of around 11%.  Any incremental government borrowings from the market would push up the interest rates and affect the economy adversely by creating a fertile ground for increase in inflation.

On the other hand, India saves 35% of its GDP, one of the highest in the world.  A significant part of this saving however sits in Savings & Fixed deposit accounts with banks not being fully channelised to meet the requirements of the Industry and the economy as a whole.   Under these circumstances, it would be ideal if the government creates a separate investment category for individuals in the forthcoming budget which will enable individuals to invest may be upto Rs. 5 lacs in tax free infrastructure bonds to be issued by PSUs operating in the infrastructure sector.  Such investment should get tax relief and the income on such investment should also be tax free.  This will surely channelise huge retail savings and enable government to develop the much needed infrastructure support without incremental borrowings from the market.  Increased government spending without jeopardizing the money market and affecting the interest rate or inflation will undoubtedly have a positive impact on the economy.

Photograph


About Reliance Money
www.reliancemoney.com  
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins.  Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.  The largest broking house in India with 3.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,165 cities/ towns.  Reliance Money endeavors to change the way investors transact in financial markets and avails financial services.  The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 5% of the total stock exchange volume.  Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.