The PM blamed the UPA regime for the problems in the banking sector.
With time the start-up action plan will need to be tweaked and will need to move in the direction of removing both hurdles and privileges.
As India emerges from the COVID-19 crisis, the ninth budget under the Modi government, including an interim one, is widely expected to focus on boosting spending on job creation and rural development, generous allocations for development schemes, putting more money in the hands of the average taxpayer and easing rules to attract foreign investments.
India has been a core portfolio holding for emerging market funds.
Long-term capital gains tax may be scrapped and the burden of dividend distribution tax could perhaps be shifted from companies to shareholders. Also, the Budget could provide income tax relief for the salaried classes, while proposing tax sops for small, medium and micro enterprises.
Urjit Patel as the new RBI governor whose focus is on taming inflation has lowered the probability of interest rate cut soon
A cut in rates would have encouraged the banks to lend aggressively on the retail front.
Gains in key IT, capital goods, healthcare and metal stocks, after consistent buying by domestic and foreign investors, helped both the key indices to scale new peaks.
'You want a steady, confident, self-assured and highly skilful hand at the till. 'It is a pity that the BJP has decided to deprive itself of such a hand at this politically sensitive time.' 'It is like sacking your surgeon in the middle of your brain surgery,' says S Muralidharan.
Here are the key decisions announced by the Reserve Bank of India on Thursday.
Indians want change and progress. They should be willing to accept tough decisions, says Sanjeev Nayyar.
Sensex, Nifty have lost about 6%, against 0.5-5% decline in other key Asian indices.
India's economy has bounced back amazingly from the Covid-19 pandemic and nationwide lockdown over the last one year, but it is not out of the woods yet, according to the World Bank, which in its latest report has predicted that the country's real GDP growth for fiscal year 21/22 could range from 7.5 to 12.5 per cent.
In the near term, the key driver will still be the government's fiscal spending.
'Right now, politics is operating in a state of suspended animation. That works to Modi's advantage.'
Bankers said high interest rate could make Indian economy sluggish given that inflation is around 5%
UV Asset Reconstruction Company Ltd has made the highest bid of Rs 16,000 crore to buy Anil Ambani group's Reliance Communications and Reliance Telecom, which are in the National Company Law Tribunal (NCLT). Last year it was the highest bidder for taking over Aircel's assets for an upfront payment of Rs 150 crore. Surajeet Das Gupta and Dev Chatterjee dig deeper to find out more about this little known company.
Lower revenue collection puts upward pressure on government borrowing, ensuring that it deviates from the glided path of debt reduction
'In the end, investing is about people.' 'If you get the right people, they make things happen,' Mengistu Alemayehu tells Shyamal Majumdar.
The BSE Mid-cap index gained 1.1% while the Small-cap index surged 1.3%, outperforming the benchmark indices
Adapting to an inevitable digital intervention is India's only hope at beating a long-standing job crisis. To do so, focus on quality education and better skill development is fundamental, says Dr Yogesh Kumar Bhatt.
In an interaction with Jash Kriplani, A Balasubramanian, managing director and chief executive officer, Aditya Birla Sun Life Asset Management Company, shares his optimism on what makes him believe that these cuts can help in addressing multiple issues plaguing the economy, without letting fiscal deficit pose any major risk.
Any NGO critical of the government is unlikely to receive a green signal. The new amendment will leave NGOs vulnerable to harassment. It was the NGO sector that helped provide compassion and food to millions of people during the lockdown. The new Bill will render such cooperation and camaraderie impossible in future, observes Rashme Sehgal.
With almost all opposition parties too backing the 'Bharat bandh' and many announcing parallel protests in support of the farmers, the Centre has issued an advisory directing the states and Union Territories to tighten security and ensure peace is maintained.
The first signs of growing bonhomie between Modi and Rajan came early last year, when Modi called Rajan the "best teacher" for explaining complex economic issues to him.
Total debt for listed Indian companies excluding financials fell only 4 per cent to $368 billion in the year ended in March 2015.
'Concerns about India's future are hampering private investment.' 'If the private sector sees strategy, teams and execution on these issues, this will inspire confidence in India.' 'This should be our main strategy for 2017,' says Ajay Shah.
'Modi is likely to make more announcements to win or retain popularity, and put himself at the centre of things even more than now,' says T N Ninan.
'India's biggest loss is that we will not have anyone as principled and as courageous as Rajan.'
'Give cash assistance of Rs 75 per person per day and an android phone and you will see the economy reviving.'
The Reserve Bank is likely to cut the repo rate by 25 basis points (bps) after the Budget.
The use of Section 7 is fraught with risks to the autonomy of the central bank, the credibility of the government and the smooth functioning of the financial markets, says A K Bhattacharya.
Watal panel had suggested an independent payments regulator be set up.
In the broader market, the BSE Midcap was down 0.2%, while BSE Smallcap fell 0.1%.
The estimates of national income and growth do not pass the 'smell test'.
Telecom shares rallied on hopes that they would hike tariffs after huge investments to acquire spectrum.
It has built confidence in the possibility of change; now reality has to catch up with the image and the expectation, says T N Ninan.
The government also proposed promoting 'one product one district' for better marketing and export of horticulture crops. It also called on states for early implementation of three key central model laws on land leasing, agriculture produce and livestock marketing and contract farming.
Today, Vachani's public-listed company, Dixon Technologies, has gone beyond manufacturing just television sets. Armed with private equity funding from Motilal Oswal eight years ago, it has transformed itself into a Rs 4,400 crore electronic manufacturing services major, which now straddles lighting products, home appliances, feature phones, LED bulbs, amongst others. A two-part series looks at how two home-grown manufacturers are leveraging the govt's production-linked incentive scheme.
In the currency markets, the rupee lost another 10 paise to close at 1-week low of 63.54 against the US dollar
