What does being wealthy mean ?

In many ways life is a race and we are all participating in it to reach completion. Fortunately, unlike in a real race there isn’t only one winner here, each one of us will end up at different positions and all of us can choose to be happy or unhappy about it, depending on our expectations and our actual achievements.

If you have studied Maslow’s hierarchy of needs, you will understand that the driving force for most middle class or upper middle class people should really be self actualisation, at least after the other levels of needs to lead a reasonably good life are met. This will also explain why many of us are dissatisfied about our lives, even though we may be doing well in the financial context. Wealth definitely has a financial dimension but it is really a whole lot more than that.

Think of it in terms of the scenario below in order to understand this better :-

  • You have a 5 year old son and your worry is to get him to a good school which hopefully does not cost a bomb.
  • Based on your reading of all the Facebook groups and books written by people you believe in, you invest in MF through SIP for his college education.
  • When the time comes for college, if he does not get through his own ability into a good one, you stretch yourself by paying capitation fee in some private college.
  • Beyond graduation if he does not get a decent job you again look at PG etc.

You will see that in all of this, money plays a very minimal role, though it is important. Even if you did not invest for his college education through MF etc, he could still continue his education through loans etc, assuming he has the capability to get into a good college. The real investment here is therefore, how you have guided him since childhood to attain the standards required for getting into a premium college. If you have that ability then you can consider yourself wealthy not otherwise.

The bottom line therefore is that you are seeking some outcome or you are being sought out by others as they feel you can add great value to them – this makes you wealthy. Very often such skills or knowledge can be used to earn money but even if you give it away without any monetary benefit to yourself, it still makes you wealthy. For example, when I write my blog and as a result, several people interact with me for advice, it definitely gives me a feeling of being wealthy.

When I was thinking about the times when I have genuinely felt I was wealthy, I could think of the following situations:-

  • My ability to do things which are important to me such as travel, attending sports or other cultural events, sampling different types of cuisine etc.
  • The luxury of time I have had earlier and today to read up on any subject I like.
  • The success of my children in their school, college and a variety of other areas which give me the feeling that I have brought them up well.
  • Mentoring of hundreds of my erstwhile colleagues, many of who are working in leadership positions now, in the corporate world.
  • The mentoring which I do with many IIM aspirants which has played some part in their getting admitted to these institutes.
  • The professional work in Consulting I do with SME companies in order to help them scale up from where they are today.
  • The fact that many people look up to me in different ways is a source of great pride and joy to me, which in turn makes me feel wealthy.

In several ways, being wealthy is really the ability to give in order to make a difference to the lives of other people in your personal or professional sphere. Money is definitely one medium of distribution but there are many others. Importantly, it is an ongoing process you do not need to wait for it till you have finished your work life or have assets of a few crores etc. Start in whichever way you can and to whatever extent possible, you will feel the power of being wealthy quite soon.

If you were to look at yourself and ask if you were wealthy, what will your answer be? If you want to share it with me, I will be happy to hear it.

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How much did our Kumarokom vacation cost?

A question I have had to face several times last week is the title of this post. Ever since I wrote about the vacation in my blog, people have wanted to know more about how they could go there and also how much it had cost me. For the first, I will definitely recommend a vacation in Kumarokom for anyone who is looking for relaxation. As to the costs, let me handle it in this post.

As any experienced traveler will know the costs of a vacation can broadly be divided into the following heads :-

  • Transportation to and from destination.
  • Accommodation.
  • Local conveyance.
  • Food.
  • Sightseeing and other activities.

In our case, the week long accommodation at the Karma Chakra resort was a bonus week through our Timeshare and it cost us 5750 Rs. Of course, if it was a regular exchange week then the cost would have been in the region of 22000 Rs. In the absence of Timeshare such a property will at least go for 6000 Rs per room night, so be prepared to shell out 42000 Rs if you are planning to stay for a week. Apart from the bonus week fee we also had to pay about 1100 Rs for the luxury tax levied by the state of Kerala.

As far as transportation was concerned, we took the flight to Kochi and back. From the Kochi airport to the resort we had taken a cab. As we bought tickets reasonably early and also used credit card discounts, the ticket prices came to only 8000 Rs. The travel to the resort and back by cab cost 4800 Rs – 2300 for the onward journey, 2500 for the return one.

Local conveyance in Kumarokom was mostly by Autos and we took the bus on one occasion from Kottayam. The Auto drivers are a law unto themselves and even a 1-2 kms ride will cost you 50 Rs easily. Our total expenses on these were not much, maybe in the range of 1000 Rs or so. Travel to the Hyderabad airport and back home was another 1500 Rs.

Food is something which both me and my wife love to indulge in and it was reasonably expensive at the resort though the quality was great. We also dined out a few days at a local restaurant apart from sampling some rather good fare at the nearby bakeries. For the 7 days our overall food costs came close to 9000 Rs.

Sightseeing and activities were mostly a visit to the Bird sanctuary and a house boat ride on the serene Vembanad lake. Overall costs were in the region of 5000 Rs.

So putting it all together the tally will be as below :-

  • Accommodation       – 6850 Rs
  • Transportation          – 12,800 Rs
  • Local conveyance      – 2500 Rs
  • Sightseeing                  – 5000 Rs
  • Food                                – 9000 Rs

Overall cost of the vacation was therefore 35000 Rs and change. Pretty expensive, by most standards but we had a great time. The costs were real but so was the experience and the memories, quite priceless.                     

Kumarokom – a bliss for the discerning traveler

For an avid traveler like me, the first trip of the year is always an eagerly anticipated one, often setting the tone for the rest of the year. Last year we had been to the Rann of Kutch and this year we have started off with Kumarokom – both in some style !!

Kumarokom is not new to both Lipi and me – we had been there in 2003 for a few days in the KTDC property Waterscapes, adjoining the bird sanctuary. It was a memorable trip then but a trifle rushed and a lot of time has passed since then. Therefore, when our upgrading of the Timeshare entitled us to a bonus week which could be taken in the signature property Karma Chakra, I had no hesitation in making the decision.

A little about Kumarokom and the Vembanad lake will be useful for readers who are not completely aware of it. Kerala is a narrow state with an extensive coastline. In several places the sea water comes inland creating a vast system of canals, more popularly known as the backwaters. There are also lakes pretty much adjacent to the sea and almost leading to it. The charm of the backwaters is that you can navigate these on boats and get a slice of the Kerala village life as the boat sails past the inhabitants engaged in their daily work. These boats come in all shapes and sizes – from the humble rowing boat to the shikara type ones and finally the fully loaded House boats which in the local lingo are called Kettuvalams. These are fully functional house boats which can navigate the lakes and canals. They come with air conditioned bedrooms, proper toilets and great cooking arrangements. These house boats have a lot to do with Kerala being an iconic tourist destination – not to forget the beaches, culture and cuisine of course.

The Vembanad lake is the largest fresh water lake in India, if one does not consider the Chilka lake in Orissa for it’s brackish water. It is a vast water body covering an area greater than 2000 sq kms, stretching in length for 93 Kms between Aleppey and Kochi, with a maximum width of 14 kms. If you see it for the first time, you may well mistake it for the sea – such is the vastness of it’s expanse. Kumarokom is really a village in the Kottayam district and has a lot of resorts now, bordering the lake. The nearest town is Kottayam, a rather bustling place, quite different from the idyllic serenity of Kumarokom.

Ok, enough of an introduction then. Our journey started off on 4th February and the availability of a flight to Kochi made it rather easy. A short flight and a car ride for a couple of hours saw us in the resort by 2 pm in the afternoon. The resort is really built on what used to be a wetland before and is right on the Vembanad lake. All the 24 rooms are on one side ensuring that each room has a lake view. The other side has the Reception, Activity center and the restaurant. The swimming pool is in the middle of it and the whole middle section is on stilts with water being there. You get a feeling that you are crossing bridges when you walk from one side of the resort to the other. In all ways, this is a great property and our room was a very nice one too. It had all the amenities and the crowning glory was definitely the spacious balcony which had a great view of the Vembanad lake – we practically woke up each morning with the mist swirling over the vastness of the lake with the birds flying around and swooping down to get an early start for their food.

The best activity in the resort was definitely the sunset which could be observed sitting under a Gazebo, erected strategically at a perfect place. The lawn next had a swing and a hammock, the swimming pool with the deck chairs just behind and the resident house boat of the resort tied nearby. This along with the variety of birds moving around in the evenings, made this an idyllic activity. We spent all our evenings there and though the final moments of the sunset were often obliterated by the clouds, whatever we did get to view was spectacular nonetheless. At night the resort was also lit up beautifully and the lights coming on as darkness engulfed us slowly was rather magical. On a more prosaic note, the restaurant served quite delectable fare – both local cuisine and also some North Indian varieties.

The resort was good enough to just laze around, lie down in the divan provided in the balcony and catch up with some reading while soaking in the sight of the majestic Vembanad lake. To be sure, we did that awhile and I finished the 2 books I had got for the trip. Even managed to do some work done for my current engagement, courtesy the wifi available, which was rather good. But as travelers who are fairly active, we also got to do a lot of other stuff too.

Lipi has a friend in Kollam and she visited us along with her husband, who is in the army, on the Sunday we were there. It was great to meet them and even better that I got some Beer as a gift – saved me a lot of expensive buying at the resort. We went down to a local restaurant and had some authentic Kerala food – Fish thali, Karimeen fry and Prawns Masala. We also repeated lunch there on our last day – this time trying the Karimeen wrapped in a banana leaf along with some Duck Mapaas.

Ferries are a common mode of transport in Kerala waterways and we went in a local ferry one day. It was quite an experience, what with all kinds of local people clambering on board the ferry in their bikes. As the resort house boat was way too expensive we hired one on our own for 3 hours and 3000 Rs another day. It was a great way to spend time on the Vembanad lake, we nearly went close to Aleppey. Just the number of birds we saw – Egrets, Kingfisher, Cormorants, Snake birds, Storks, Robin and many others made it worthwhile. While you are there the peace and serene tranquility is broken only by the chirpings of the birds. One can also go for an overnight trip but as we had experienced it last time, we did not opt for that.

Some word on transportation – autos are available and are the same as everywhere else in India, inasmuch as they will quote their price which is normally high. We also went in a few buses for short distances and once coming back from Kottayam. The service is fairly good but there is not a word of English written on any of the buses so you really have to find out things for yourself from the conductor or fellow passengers. They were normally helpful though, especially the one who directed us in Kottayam.

We had a good visit to the bird sanctuary one morning and though the birds were not seen in great numbers, the walk through the sanctuary was a good one. We also revisited the KTDC resort Waterscapes after all these years and liked what we saw. There was a bird enclosure with a huge Turkey and some Emus there. The buffet breakfast was rather expensive but good otherwise and our appetite was rendered rather keen after the long walk.

Kottayam was another day visit – we had snacks in the Indian Coffee house, which is pretty ubiquitous in most of Kerala towns and also went to the local mall. It was not a big one but had a pretty good collection of clothing for all types and occasion. We did not spend much time there, it looked quite a bustling place with all the normal stuff.

The days kind of flew by and it was soon time to go. Kochi airport was overcrowded and we started missing Kumarokom even while we were in Kerala !! All vacations have to end sometime but the good thing is you can keep the memories and play them in your mind as much as you want. When life really gets busy, and it will this week itself, I will play the mornings and sunsets of Kumarokom in my mind’s eyes.

It will be an almost guaranteed way of seeking some relaxation and busting stress.

 

Experiences and money – my take

As I am writing this blog post on Monday, sitting in our unit in Karma Chakra at Kumarokom, I cannot but feel somewhat philosophical. I think it partly has to do with the backdrop of the beautiful Vembanad lake which stretches out in a seemingly endless manner and can be viewed really well from our balcony. So instead of the usual investment related post, let me write one on the quality of experiences and whether you need to have a lot of money to spare if you have to undergo these experiences.

Let me start by admitting that some experiences you seek will definitely require a fair amount of money. For example, if you are keen on visiting the Swiss Alps or the Great Barrier Reef in Australia, you will need a certain amount of money to get there. If you do not have that amount then you simply cannot do it and need to accept the same. However, even here the kind of experience you seek will define the quantity of money you need to have to go through it. So you could go to Australia with 2 lacs or do the same thing for a much higher price.

The concept that we must understand here is what you consider to be the core of the experience versus the peripheral frills. It is much like the cake and the icing concept – the icing looks attractive, tastes good and enhances the whole experience of having the cake BUT it does not really decide the quality of the cake. The core of your experience is like the cake itself, the associated frills are akin to the icing. So it really boils down to the kind of person you are and what are you temperamentally suited to. Is the movie important to you or do you want to lie down in a sofa while seeing the movie?

Let me explain with an example that happened just today morning and led me to think about writing this post. Many of you will know that the backwaters of Kerala and the Vembanad lake is famous for the different kinds of boats that ply through them. You have simple rowing boats, ferries and also the large house boats that come with all kinds of comforts and trappings from air conditioned bedrooms to authentic Kerala cuisine which is prepared in the boat while you relax. Now, if you have not been to one of these Rice boats or Kettuvalams, I will recommend you do it once in your life. It is an unique experience and will stay with you life long. In one of our visits to Kerala earlier, we had taken one such boat from Aleppey and enjoyed our overnight stay immensely. This was about 15 years back and it had cost 5000 Rs then – expensive but entirely worthwhile. Note that in this case, the experience we were seeking as a family was being in the House boat and having an authentic Kerala backwater experience. Here the House boat was very much part of the cake itself and not the icing.

Cut to the present – Lipi and I are visiting Kumarokom after a long time and our resort is right on the Vembanad lake. The location of the resort is breathtaking and you can have your fill of the Vembanad lake, including the surreal sunsets and bird watching. Now this resort has a House boat of it’s own which they rent out to the guests, either for overnight or for a 5 hour lunch cruise. The cost of the first is 17,500 Rs and the second is 9000 Rs. It is a happy situation that we can afford to spend the money, but should we? Going by the cake analogy, what is the cake here? For me it was clearly to experience the Vembanad lake and getting closer to the birds to watch their hunting of fish. Yes, it could be done very comfortably from the house boat, but the rest of the facilities there were really an icing.

We chose to visit a local boat jetty reasonably nearby where there were ferries plying from Kumarokom to Muhamma. It was a great slice of local life, with people driving onto the ferry in their bikes and getting to see the regular inhabitants of Kumarokom. The ferry transported us from one end of the lake to the other in about 45 minutes on way. Through the whole journey we got a great view of the Vembanad lake, got to see the water birds at really close quarters and I can vouch that the experience I was seeking was fully met by my criteria – luxury was of course nor one of them and neither was it available. Note that the core requirement had changed from our earlier backwater cruise as I had already experienced it once before. The cost here was obviously a trivial one – tickets were only 10 Rs each on the ferry and we ate at a local bakery close to the jetty for 200 Rs.

So next time you are looking at an experience, separate the core from the extraneous. If you can afford designer holidays and want them then go for it by all means. However, if you love travelling do not deny yourself just because you cannot do it in style. You really do not need an upscale seaside resort to enjoy the views of the sea, nor do you need a private beach to enjoy swimming there. I think many of us are unable to separate the cake from the icing, so I will give you some examples here :-

  • If you like reading, become a member of a library. Do not give up reading just because you cannot buy all the books you want to read.
  • If you want to visit a place but cannot afford the rates in peak season or in the popular resorts, check out home stays and other less expensive hotels.
  • In case you cannot afford the local cuisine in a 5 star joint, check out the local eateries for the same – many of these will be as varied and taste good too.

Coming back to this trip and separating the cake from the icing, I will conclude with how I have looked at it :-

  • Our stay at Karma Chakra is really the cake – we wanted to stay in a comfortable place and have planned for it over the years through our Timeshare investment.
  • Our travel to Kochi by air was also the cake – read my post on air travel to understand more on this.
  • Experiencing Vembanad lake is the cake and doing so by house boat is the icing.
  • Experiencing good food is the cake – we went to a local hotel yesterday with some friends where the local food quality was superb. It was not really inexpensive but clearly lacked the frills of a high class restaurant. Our resort has one such eating place and we are happy to eat there as well.

The point is have both the cake and the icing as your experience if you can afford it. But too often in life, we ignore the cake because we cannot get one with an attractive icing. Maximise the number and quality of your experiences within your means and you will be leading a much more meaningful and happier life.

Travel by air can be a smart option

I have always been fond of travel whether it is for business or for pleasure. A visit to new places within India and outside it is always an exciting event for me. Fortunately this interest is shared by my wife and our children too as they have been to several places over the years.

When I was younger and traveling alone, it hardly mattered as to how I did so. Normally train and specifically the AC 2 Tier coaches would be the medium. As the family grew and time became a premium courtesy my demanding corporate job, I had to look into air travel within India. If one went by air it was possible to take a break even with a 3-4 day time window. Part of it was of course lifestyle creep too, as it was way easier to get my wife to go on such short trips if we were going by air. With the options being more today and there being the probability of tickets being reasonably priced, this makes sense in many ways.

I have a very simple way to decide as to whether we should go by train or air. In case the journey can be done by an overnight train, typically in less than 10 -12 hours, I prefer to take the train. The romance of train journeys has stayed with me since childhood but  even though the spirit is willing, the flesh is definitely weak as far as longer journeys are concerned. So, if I am going on a personal vacation I am quite happy to take the train between Hyderabad and Chennai or Bangalore or Pune. Of course, if I were going on business I would go by air. On the other hand travel to Kolkata or Delhi or Mumbai from my city Hyderabad would always be done by air.

As many frequent travelers will know, the price of air tickets vary greatly depending on the time you buy them. In general, the earlier you buy the better are the chances of getting a good price. However, if you are planning to go around the school holidays or some festival or a long weekend, the prices will normally be always high. The second element is waiting for an airline sale etc and taking advantage of the cashback and discounts that some credit and debit cards offer. If you plan early and take these into account by using the mobile apps from different travel sites, you can get a rather good deal.

Let me give some examples of the air ticket purchases I have done this year, so that the readers can get the point easily:-

  • We are leaving for Kumarokom tomorrow for a week’s vacation. I wanted to book an air ticket as trains were few and the journey time exceeded my benchmark.
    •  I looked at a few sites and decided on Make My Trip site. It had reasonable prices and good options though it charges convenience fees of 175 per ticket.
    • However with the MMT site Citibank was running a cashback offer of 1200 Rs which I utilized along with some MMT points.
    • The overall price after the cashback came to about 8000 Rs, which was not much higher than the AC 2 tier fare.
  • I also booked air ticket for my son as he wanted to come in mid semester for a couple of days. While there is a train and regular Volvo buses between Goa and Hyderabad, those were not convenient for a 2 day trip.
    • As the overall price was coming to less than 5000 Rs the ICICI or CITI cashback was not working for this ticket.
    • I booked with Ease My Trip as that is a site which does not charge convenience fees for booking tickets.
    • A round trip ticket came to about 4000 Rs, which is only about 20 % more than an AC 2 Tier round trip ticket.
  • The third trip is to Kolkata in October. We have not been there for a long time during Durga Pujas and wanted to do so this year.
    • In this case the tickets were priced at levels where it made sense to break up the purchases in order to maximize the cashback.
    • For the onward journey I used ICICI debit card in the MMT application. Despite the convenience fee the 1500 cashback was worth it.
    • For the return journey, I used the same MMT application with my CITI credit card. The cashback available was 1200 Rs.
    • The overall price of the trip came to about 12000 which is the least I have paid in  years.

Note that these were normally booked without an ongoing sale etc. My experience in that has not been too encouraging and these eventual prices were pretty good. If you are of the opinion that air prices are much higher than train prices think again. With air prices in a competitive situation and train fares increasing greatly in the last 2-3 years, it makes much more sense to look at air travel than ever before.

Of course, traveling by air at short notice is a terrible idea as the prices are astronomical. This is not something which you should ever look to do.

Impact of budget on asset classes

Now that the dust has settled a bit on the budget front, it is a good time to look into the fine print to check how the different asset classes will be impacted with the budget plans. Since there hasn’t been much changes on the taxation front, all investors will be hoping that the budget proposals will have a positive impact on their asset classes.

Let us start with equity then. The following are the most notable:-

  • The FM did not touch LTCG exemption for this asset class and that in itself came as a huge relief to the markets. A lot of the up move was due to this factor.
  • Reduction of corporate taxes for companies having less than 50 crores turnover in 2015-2016 will definitely increase their profit margins and consequently contribute to the elusive earnings growth that all are seeking.
  • The monetary policy is definitely looking at reduction of rates and companies can look forward to cheaper credit. This will hopefully push up profit margins.
  • The infrastructure push will be positive news for many companies linked to this area of business. Easier credit will help consumer product companies.
  • Banking industry will get some much needed support for the NPA problem.

Based on the above, it will be logical to assume that the performance of our companies will start to get better over time, quite possibly from the next quarter. The discipline shown on the fiscal deficit front as well as the seemingly firm deadline on GST implementation should help our credit ratings. Over the past few months FII money has been going away from our markets to other developed and emerging markets. With the above changes and the rally which has been largely driven by domestic liquidity, it is conceivable that some FII buying may resume in our markets, at least in specific stocks. Equity therefore, seems to be the asset class of choice for investors this year. Our markets have not really gone anywhere in the last 2 years though several stocks have given good returns. This can be a year when the markets do well overall and this gets reflected in an up move of the indices.

What about Debt in that case? Some changes to note are as follows:-

  • As with equity the LTCG treatment has been kept unchanged.
  • Availability of huge amounts of cash with the banks may push interest rates further down. This may happen as early as the monetary policy of February 8th.
  • LIC scheme of 8 % returns for senior citizens is actually an indication that interest rates may well fall further.
  • The rate reduction will happen but the cycle is close to bottoming out too, maybe another 50 basis points overall will be there.

Based on these, I think Debt will not really be the asset class where investors should invest fresh in 2017. It makes sense to only look at mandatory debt such as PF and PPF. For the rest try to invest as much into equity as possible, both through MF and stocks. For any of your existing debt products that may get redeemed this year, look at equity again.

What about Real Estate? Well, that presents an interesting scenario. Look at the following:

  • Home loan rates are definitely going down and announcements of discounts on lower amount of loans will help the housing industry.
  • Demonetisation has definitely impacted the prices though Real Estate companies will fight hard to resist any downgrades of pricing.
  • Builders will be helped by the one year window to sell the property without getting into the Deemed income stiff.
  • 2 year duration for LTCG can make investment in homes easier.
  • Capping the interest deduction at 2 lacs for the second home makes sense but it is a blow for people who were looking to get a second home as an investment.

Based on the above, it does seem that buying the first home is a great idea now and doing so for a second investment property is a not so good idea. Unless you are really flush with funds, avoid the investment idea. You can easily get caught into an increasing cycle of interest rates 2-3 years down the line and the income from your investment may not be that great due to the generally low rental yields.

Conclusions then? Buy a first home if you are interested, keep debt only at PF / PPF level and put all the rest into equity. This is the year of equity, get started even if you feel hesitant. If you are already into it then go on to take a deeper plunge.

My take on the budget

The kind of hype and expectation which is normally generated by any budget in India is tough to meet at the best of times. This year was more so due to the demonetization fallout that many of us were affected by. The price of inconvenience was sought and in many cases loss of business and jobs required some level of reparation. Lack of growth and clear decisions regarding black money and political funding also had to be tackled.

Based on all of this, the foremost question will be whether the FM has delivered or not? I would say that he has done it quite well, even though I feel there was room to do more in terms of personal income taxes. The 5 % reduction on the first slab was good but it should have been followed up with similar reductions in the other slabs. The surcharge on the incomes greater than 50 lacs is keeping with the sentiment that the richer people can afford to pay taxes. With the ongoing elections, this is something I can understand, though I do not agree with the approach.

Taxation and black money have been the recurring themes in our economy and polity in 2016 and the FM did a commendable job here. Firstly, he addressed the issue of poor tax compliance and brazen tax evasion in India – it is like an elephant in the room, everyone knew about it but no one mentioned it so far. The FM has put the numbers in context – only 1.7  lacs people saying that they earn more than 50 lacs is abysmally low. With the event of demonetization and the cash being brought into the banking system now, there is real hope that people who had stashed away their ill gotten wealth will now have to face the music. If they declare through IDS 2 then they pay 50 % tax and another 25 % as deposit for 4 years. In case they choose to just take a risk, they will definitely get caught and end up paying 82.5 % tax and in addition get a possible jail term.

As far as the growth part is concerned, the FM has avoided some potentially poor decisions like taxing capital gains on equity etc. On the other hand, reduction of LTCG tenure on property capital gains, shifting the base year to 2001, giving 1 year relief to builders on deemed income will energize the RE sector. With the earlier incentives on housing loans announced by the PM this gives a good fillip to the housing sector, which was much needed.

Agriculture has got a lot of attention in this budget and that is good given a lot of our people depend on it even today. Improvement in agricultural production and rural income will also be able to drive consumption which is vital for corporate growth. We also need to remember that resources are needed here far more, than people like us need it.

The corporate tax relief to companies doing revenues of less than 50 crores in the year 2015-2016, will help the earning of these companies next year. This will be a good push to the elusive earning growth that we have been waiting for. This reform is a harbinger of more things to come and will encourage buying in our stock markets. The fiscal deficit being on track will increase the confidence in the India story as far as the Rating agencies are concerned. FII buying will return and the general mood of our markets in 2017 will be upbeat, though there will definitely be periods of corrections.

Some other good things in the budget was the wait for GST, instead of trying to tinker with Service tax or Excise for 3-4 months. LIC coming up with a 8 % scheme for senior citizens, Companies like IRCTC going public, Safety fund for the Railways, divestment through CPSE ETF next year too are all good measures. Transformation to the Digital economy by stopping cash payments beyond 3 lacs is an excellent idea.

The political funding cap will reduce the impact of goons in our political syatem and this will have the best results in the near future. On the whole, this is definitely a budget in the TEC mode – India is well on the way to Transform, Energize and Clean.