Analysts said the higher capex by PSUs, along with government spending, could trigger a capex revival for the corporate sector by the second half of FY17
Do the actual numbers bear out the claims made by the government or do they suggest something else? asks A K Bhattacharya.
'Now is the time for India to course correct and for the government also to course correct,' says businessman Mangesh Khatri.
Finance Minister Arun Jaitley announced slew of reforms for the masses.
Weak consumer sentiment across urban and rural markets due to slow farm inflows, subdued agri-commodity prices, rising cost of ownership as a result of regulatory changes including safety, emissions, vehicle registration, along with a rise in interest cost/EMI, have impacted demand.
Indian economy is set for a 'goldilocks' period -- used to describe a timeframe of high growth and low inflation -- while it can become Asia's fastest growing economy in 2016, Japanese financial major Nomura said.
67 companies with total debt of Rs 5.65 lakh cr were either loss-making or didn't generate enough profit to cover interest cost in FY15
'The IPO window has been more or less open since the new government in 2014.'
After the April-July fiscal deficit data was released on August 31, several analysts hinted that the government may need to go for cuts in capital expenditure to meet the fiscal deficit target.
Historically, overall credit has grown at 1.6 times GDP growth
In a pre-Budget meeting with Finance Minister Nirmala Sitharaman, the corporate leaders highlighted several issues, including certain income tax matters which were coming in the way of mergers and acquisitions or slowing them down and roles that need to be played by state businesses to prosper at the ground level.
The report said inflation is expected to remain below 5 per cent over the two years.
Cash-rich Central Public Sector Enterprises (CPSEs) have to either invest their surplus funds or give it to someone for investment purpose, Finance Minister P Chidambaram has said.
Despite a slowing economy, the Budget does not envisage any major stimulus through the budgeted fiscal deficit figures, said Goldman Sachs.
Economists have said if a stimulus is needed it should be different from what was provided in 2008-09, when the economy faced the ripple effects of a global meltdown following the Lehman Brothers collapse.
The finance ministry has short listed 11 PSUs for a possible buyback of shares in the ongoing financial year
Three stockmarket experts give their best picks for the New Year.
'The domestic scenario is much better than earlier, demonstrated in the March quarter earnings.'
The excise duty collection grew by 81 per cent in first quarter against the budgeted 21.7 per cent.
'The quick fixes have failed; there is now no alternative to deeper reforms,' says Ajay Shah.
Investment in market leaders with a safety-first approach could yield reasonable returns across sectors.
Like everything else, the structure of banks may change, and banks may depend more on digital technologies and artificial intelligence for dealing with both their customers and employees.
Barclays' assessment of 35 major cities on various socio-economic parameters suggests that mass transit rail systems should be a high priority in 12 cities with bus rapid transit systems acting as feeder services.
Private sector investment is likely to improve mildly in H2 of FY17, even though signs from investment data are not encouraging.
The Indian economy is likely to benefit from tailwinds from both monetary and fiscal policy in the coming month
Officials said the government had no option but to cut spending.
The long-term growth perspective or potential for India is one of the highest in the Asia Pacific region.
Experts prefer domestic consumption-driven plays and defensives such as information technology and pharmaceuticals
'The government must keep bad news out of the newspapers. If you have news about a fight everyday, it is not a climate where investment takes place.'
Oil India is set to usher in a new era with a road map drawn to ramp up production and diversification plans to foray into liquefied natural gas
Macro and micro environment are becoming more challenging.
Govt looks at more taxes, dividends to meet deficit target.
However, the budget arithmetic is slightly optimistic.
Encouragingly, the recovery also appears to be becoming broad-based
'We think FY18 will end with a 10 to 12 per cent earnings growth, but FY19 will see a recovery to over 15 per cent.'
India's manufacturing sector witnessed a modest growth in May, but going ahead "weak demand conditions" may persist.
Raghuram Rajan's 'surgery' uncovers more bad loans
However, independent economists are not as gung-ho as the finance ministry over the likelihood of deficit target being met this time around, says Indivjal Dhasmana.
The government has spent a little less than one-third of the Budget estimate of capital expenditure, it can still spend about Rs 20,000 crore this year without disturbing its fiscal deficit target.
Corporate India at present is more indebted than all state govts put together.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances