Benefit from India’s reforms

Government Support: Necessary For Growth

For any sector to do well, it needs the help and support of the government.

For example in the 90s, the government opened up the telecom sector to private players, resulting in an increase in mobile phone subscribers from 9 lakhs to 3,153 lakhs in just ten years. Companies in these sectors have benefitted tremendously.

With the full support of the government, several sectors are about to see reforms on a large scale, which is bound to have a huge impact on the economy. Can you imagine the impact on investments of those who sense such opportunities and grab them at the right time?

For no. of mobile phone subscribers: Source - Economic Survey Report 2007-2012, Govt. of India & Planning Commission of India.

So, Where Is The Government Planning to Put Its Money?

Here are some sectors where the government plans to spend by 2012 according to the Eleventh Five Year Plan 2007 – 2012 of Planning Commission of India:

Planned spends of the government as mentioned above are from the Eleventh Five Year Plan 2007 – 2012. Being a planned outlay from 2007-2012, the actual spends and its consequential effect in the benefits accruing to companies in the sector may vary.

Invest In Companies Likely To Gain From India’s Economic Reforms

Reforms are a continuous process and depending on the need of the hour, the government’s emphasis on sectors may change. Thus, at any given time, you need to be sure that your money is invested in those sectors that are fully supported by the government. More importantly, your money should be invested in a growing sector, so that you get to benefit from its growth potential. In the same way, Birla Sun Life India Reforms Fund aims to closely follow various reforms and policy initiatives laid out by the government from time to time and invest your money in companies likely to gain from such reforms. So, if the government decides to focus on newer sectors at any point in time, your investments automatically follow the path of new reforms.