India opened up its economy to the private sector in 1991. The 14th Finance Commission has recommended higher share to the states in central taxes. It suggested to increase shares of states to 42 percent from current 32 percent.
The Prime Minister also laid the foundation stone of two units of 660 MW each under the project's second phase. Modi said that he had asked the opposition to suggest ways to improve the land bill, but it did not respond. "I am not anti-farmer.
Equity benchmarks crawled higher during the week as investors reacted positively to the Budget. The out of turn repo rate cut (of 25 basis points) by the RBI on Wednesday lifted Sensex and Nifty to record highs, but profit taking pared gains.
Expecting a near-term boost to economy from RBI's rate cut, Minister of State for Finance Jayant Sinha on Wednesday said the decision should bring down the loan EMIs significantly and there is room for further easing of rates.
Now, this tradition needed to be broken, Sinha said. Once the DTC and GST were introduced, the entire Budget Speech would become irrelevant, he said. Sinha said that the practice should be that the Finance Minister should make some proposals in the Budget which should then be discussed in Parliament and then finalized at a later session.
The market gained positive momentum for the second consecutive session on Tuesday, especially post Union Budget. The 50-share NSE Nifty surpassed another milestone, the 9000-mark led by Reliance Industries, TCS and HDFC.