Dividing my rupee - Budget and Its possible effects

Budget 2010:

What our Pranabji might consider and look into before this year budget:

1. Last year deficit of 3.3 Trilion rupees
2. Aid the sectors that are badly hit last year
3. Maintain the GDP growth rate
4. Low inflation rate and also reduction in public spending

Personal tax, Direct foreign investments, Service tax and SEZ etc (These might not get missed out in budget for that matter).

On the basis of last financial year and its effects on this year's budget,I take my word to say below are the sectors which might get attention in the coming budget.

Sectors that are likely to get relief or more attention this budget may include:

1. Infrastructure

Reason: Considering the fact that GDP has gone down when compared to last three fiscals, economic strengthening would include public investments in infrastructure and its development.
Last fiscal year's growth year rate 6.7% which is not in comparison with previous three years' consistent growth rate of 9%. But this accounted by global economic melt down

Possible effects: Infrastructure shares might see heights at the start of the year or just after the budget. Metals(specially steel) and cement industries might also get benefited by this welcomed change.

Say if Budget reads the way I m expecting(about this sector) then,

Divide your rupee such that you give more paise into this sector while doing or planning your investments. Sure this year it is going to earn you more than what you are expecting from it!!

2. Textiles and Gems

Reason: These are expected to get relief from Govt as these are badly hit by the economic slow down in the last financial year.

Possible effects: May not be predicted as this is not sure whether the relief will be directly from Govt or by providing low interest rates from banks. That is by forcing the banks to assist these sectors by providing funds at low interest rates.

Watch out before planning your investments in these sectors. I say "Wait"!

Now after writing down all these I feel there is a need to analyze year 2010.What it was for India?? I got this topic while I was thinking how shall I plan my investments for the coming year. If this information could give me a little idea how should I divide my rupee next fiscal,certainly it would help you too.

I will catch you with next article on "Dividing my rupee - Indian economy (2009-10)".

To be contd...