The Reserve Bank on Friday said the economy would grow by 5 to 5.5 per cent in the current fiscal, pinning its hopes on good farm output and improved exports.
Instead of a consumption stimulus the government must address the NPA issue with a war footing and invest in infrastructure, affordable housing and exports, says Sanjeev Nayyar.
The classic Third Year or Mid-Term Problem has afflicted all but two prime ministers who have lasted a full term, give or take a few months this way or that, points out T C A Srinivasa-Raghavan.
Housing sector to benefit from Budget.
Business leaders, among others, ask govt to let go of fiscal target, seek stimulus, and direct cash transfer.
'Happily,' says Ambassador B S Prakash, 'BRICS displayed new-found energy and built something real, a bank. Between needless nihilism and as yet unjustified euphoria, there are many stations for the BRICS train and we can watch its progress with renewed interest.'
In this year's budget, Finance Minister Nirmala Sitharaman hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.
'The politician in him saw to it that the foundation stone was laid in Ahmedabad in the run-up to the assembly election in Gujarat in 2017.' 'But the statesman in him also wants it to be his legacy.'
In a bid to boost the dormant primary market, regulator Sebi said it is ready to review the mandatory grading of initial public offers.
'There is no difference between the earlier government and the present government.' 'They are all following the economic policy based on the Chicago School of thought.' 'This school of thought says the government should have very little role in governing the country and the majority of the work should be handed over to the private sector.' 'This has not succeeded in the US.' 'Yet, it is being tried here by people like Arvind Subramaniam, Arvind Panagariya, Urjit Patel and Raghuram Rajan.'
The industry said if the policy was announced, it would have taken 28 million vehicles bought before March 2005 off the road.
When the Indian economy tanked in 1991, it did so because it ran out of foreign exchange. Today, it is tanking because it has run out of rupees even as the foreign exchange granary is overflowing, says T C A Srinivasa-Raghavan.
Gold deposited by households to gold savings accounts will be used for auctioning, replenishment of RBI's gold reserves.
'If you ask India's finest business leaders, they now tell you -- in whispers, of course -- that the mood has never been so glum after 1991,' says Shekhar Gupta.
Aditya Puri thinks the government is on track.
Budget should be a platform for govt to take bold steps.
The GST Council on Saturday is expected to extend the date for IGST exemption and cess on imports
'The disease is we have models that are still based on debt and not equity. And banks are singularly not equipped to lend for longer duration projects, which often take 20 years.'
Deepak Parekh, chairman of Housing Development Finance Corporation (HDFC), India's largest mortgage lender, says the exuberance in industry about the new government is justified but big ideas articulated by the prime minister need speedy implementation.
Now with the Prime Minister insisting on quick resolution of all pending grievances, it is highly likely that all backlogs of complaints will be resolved very soon.
'No finance minister has the capacity to put the economy in an ICCU just like no finance minister has the capacity to take it for 10% growth!'
There are tell-tale signs of a slide in the quality of Budgets presented by the current administration, says Parthasarathi Shome.
BSE Mid-cap and BSE Small-cap lost 2.5% and 3.1% after oil prices soared
With Narendra Modi about to make his first Independence Day speech, there is a buzz in Delhi that Modi will make some big announcements to signal major reforms and directional shifts. But we have to wait and see if it happens, says Mohan Guruswamy.
'It will be interesting to see how Dr Patel handles gadflies with the maturity of egregiously petulant three year olds.' 'That Dr Patel does not, in so far as we can tell, cause society matrons to gush like hormonal teenagers can only be a good thing for him.' 'Look where their febrile imaginations and breathless prose took his predecessor.'
In a recent lecture, RBI governor Raghuram Rajan dished out some frank advice -- don't get into 'jugaad', instead try for the long haul. Only that will sustain in the long-run.
India's good fortune, experts in the US feel, is not the result of a fundamentally strong economy, but because it is the best of a bad set of options.
The agreement came in after the Ruias agreed to clear most of the Rs 26,000-crore dues to the lenders on completion of the transaction.
The government's stance in the face of uncertain prospects for the private sector has been that public sector investment will drive the system.
Greek proposals hailed as "a positive step forward".
The original idea was to replace the existing schemes for scheduled castes and tribes.
Rajan's remarks come as the Modi-led government completes one year.
If companies get into trouble, the loan becomes a non-performing asset and "we very much want these assets to be back on track," Raghuram Rajan said.
India's banks are propping up too many weak producers.
'Challenges will come but we will stay the course. No big step can be taken if one is afraid of criticism. We will not flinch from criticism,' says Railways Minister Piyush Goyal.
The air quality will be monitored in 10 cities.
The former finance minister also criticised Prime Minister Narendra Modi over the words he chose to attack his predecessor Manmohan Singh, saying he should remember that the Chair he sat on was used by Pandit Jawaharlal Nehru and even Atal Bihari Vajpayee and hence he should use right language.
A glance back at some important events that occurred in 2018.
Curbing the federal deficit is the government's absolute priority on February 28.
Enactment of Insolvency and Bankruptcy Code has been instrumental in pushing up India's ranking in the 'Doing Business' report
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