As we all know that latest budget has been announced, according to it, India has hailed as a “bright spot.” Some of the major updates of budget 2016-17 are:
Buzz on Interest Rates: The interest rates have been increased to 2.61 percent from the existing 2.52 percent for deposits of four years and above, but less than five years. The repo rate has been cut by 25 bps to 6.5 percent during the meeting held by RBI on 5th April 2016. These are one of the lowest rates since January 2011. The bank also raised the reverse repo by 25 bps to 6.0 percent. This has ensured more cash availability in the banking system.
Property Prices: A very regular question nowadays is whether the price of the property will rise or stay stable. Though in 2015, the property developers and investors hoped for the prices to recover, the ones willing to purchase property had been demanding for more discounts but they were not convinced by the end of the year. Now, in 2016, it is likely that the prices of the property will come done by 15 percent as compared to the last year. This is due to the fact that the cost of labor has gone up. Hence, the property sellers, this year is not in your favor.
Insurance Sector: The insurance landscape is changing soon. The regulatory changes, unstable capital markets and a decrease in financial savings have changed the performance of private life insurers in the last five years.
For those starting a new business, there is a good news that our Prime Minister, Mr. Narendra Modi has launched a new movement “Startup India “ which will boost the grassroots level of the digital entrepreneurship. Some of the salient features of the movement are spelt out as follows:
We are really thankful to Mr. Modi for this initiative.