{"id":1710,"date":"2021-01-01T00:00:00","date_gmt":"2021-01-01T00:00:00","guid":{"rendered":""},"modified":"2023-05-18T06:29:02","modified_gmt":"2023-05-18T06:29:02","slug":"reforms-that-can-re-form-your-portfolio","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/reforms-that-can-re-form-your-portfolio\/","title":{"rendered":"Reforms That Can RE-FORM Your Portfolio"},"content":{"rendered":"
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Yesterday, I met my friend after two months.<\/p>\n\n\n\n

The first line was “Harsh, Sensex<\/a> crossed 37,000 levels. I should have listened to you and not hit the panic button.”<\/p>\n\n\n\n

I listened silently to what he had to say.<\/p>\n\n\n\n

He continued, “Harsh, I think if we see a political stability, Sensex can easily pick up another 1,000 points in next two months. But you don’t look excited to me, why?”<\/p>\n\n\n\n

I replied, “I am genuinely not looking at just 1,000 points. I am looking at the big picture. India has become one of the most favoured investment<\/a> destinations in the world today. I am sure the reforms that the government introduced over the last 2-3 years, will significant RE-FORM my portfolio as well.”<\/p>\n\n\n\n

My friend looked curious now. He asked, “Which reforms are you talking about? Do you think they can drive the markets in the coming days?”<\/p>\n\n\n\n

Well, if you have similar questions, you would be surprised to know that these reforms can significantly alter the performance of your portfolio.<\/p>\n\n\n\n

Now, what are these reforms we’re talking about? Let ‘s take a look at them.<\/p>\n\n\n\n

GST Implementation:<\/h3>\n\n\n\n

Implementation of GST has enabled the removal of bundled indirect taxes and reduction of manufacturing costs due to a lower burden of taxes on the manufacturing sector.<\/p>\n\n\n\n

Introduction of GST and digitization of processes has made the process of tax<\/a> payments simpler, effective and automated. As a result, India has improved its ranking on the Paying Taxes indicator in the World Bank Doing Business Report 2018.<\/p>\n\n\n\n

Push For Digitization:<\/h3>\n\n\n\n

Systems from taxation to incorporating a company are now online. This means it is now possible to incorporate a company in India in just one day.<\/p>\n\n\n\n

A new online system has also streamlined the process for getting construction permits, reducing both the number of procedures and the time required to get a permit. This has improved India’s ranking on the Construction Permits Indicator of the World Bank Doing Business Report.<\/p>\n\n\n\n

Implementation Of Insolvency Code:<\/h3>\n\n\n\n

The Insolvency and Bankruptcy Code 2016 consolidates the existing framework relating to insolvency and bankruptcy into single law, which in turn boosts the confidence among investors.<\/p>\n\n\n\n

FDI liberalization:<\/h3>\n\n\n\n

FDI liberalization in 87 policy areas across 21 sectors has provided a major impetus to employment and job creation. Due to this ease of doing business, India is now one of the most open economies in the world for FDI.<\/p>\n\n\n\n

Infrastructure Development:<\/h3>\n\n\n\n

With a vision to enter the $5 trillion club economy by 2025, the government has adopted a multi-modal approach towards infrastructure development in the country in the last five years. This approach has not only boosted the overall economy but also provided a much-needed momentum to the real estate sector across India.<\/p>\n\n\n\n

Some other significant reforms:<\/h2>\n\n\n\n