Oct 2023 Newsletter

Economics of World Cup:

$2.4 billion is the estimated economic impact of World Cup on the economy of India or around 1% of India’s GDP (Defense spend is 2.4% of GDP). That’s a whooping lot of money in a short span of time. Cricket is a tradition, and the spending does some justice to it. As an investor you will need to look very closely at the September and December quarter performance of some sectors as their stellar performance could be a very seasonal trend due to the World Cup. Those sectors are beverages and fast food, hotels, and entertainment. Watch-out!!

GST Bummer for NRI’s:

There is an exemption up to Rs. 300,000 in the case of gems and jewelry and Rs. 100,000 in case of any other valuables. The provision would allow NRIs may be able to claim the GST refund of what they would have paid on their purchases on leaving India, thereby making their purchases cheaper in the home country. Here comes the bummer – It seems that neither the system nor the infrastructure is ready at airports and may take some time to get the process ready. Bummer!!

Online Gaming Sector:

Government has very clear idea on how to kill a booming industry. The pandemic helped a lot of gaming companies penetrate deep into the masses. Small startups with VC funding were seeing a compounded growth of 80 - 90% e.g.  Adda 52, Dream 11, Nazara Technologies and Delta Corp Ltd. Government’s moral beast woke up and attached a 28% tax on gross gaming revenue (not on the profit the company makes). Now all these companies have a truck load of retrospective tax they need to pay 2 – 5 times their total profit and ready to go bankrupt. Legal battle has started. Innovation has taken a backseat. Sounds Crazy??

Do you know the value of your site in Bangalore?

Do you have a site in Bangalore? Is it A Khata or B Khata or 11A or 11B? Did you pay betterment tax? Is your site in an area that got converted into BBMP jurisdiction from Village Panchayat jurisdiction? If you are trying to get more answers to your questions and unlock your sites true value, NRI Savior can help. Get your site appraised by us for free. Send an e-mail to enquiry.beyondsyllabus@gmail.com with your details, site location information and your query and we will provide you a free quote.

Key Personal finance term – Absolute vs Real returns:

Absolute return is simply whatever an asset or portfolio returned over a certain period. Real return is what you get in hand after paying for taxes and inflation. It’s always good to judge your asset performance on Real return and not Absolute return.