Govt should allocate funds for infrastructure projects in order to sustain demand
India’s economic growth is likely to decelerate by 1% to 6.6% this year as per IMF recent release. Government is therefore expected to allocate funds for infrastructure projects in order to sustain demand during the year 2017. Being into P2P lending segment, we are well aware about the potential of small ticket size lending done by individuals to businesses.
With India heading towards a low interest rate regime and funding avenues declining for SME during the year, it’s important for government to come up with exceptional policy initiative towards supporting both common person and SME. Hence, we expect government to provide tax exemption upto Rs 1,00,000 on investment in alternative investment sources and make provisions towards adjusting loss / non recoverable debt against the respective head.
The move shall encourage individuals to invest in alternative investment platform namely P2P lending which is a high return, medium risk avenue facilitating better returns for the common men at one end and funding support for SME on the other.
Bhavin Patel is Co founder & CEO LenDenClub.