A well balancing act by the finance minister & playing it safe. The Budget lacks the roadmap of controlling fiscal consolidation & big bang reforms. Fuel, food & fertilizer subsidies have not been cut nor there is a roadmap on the same to bring it down in the future.
Terming the Budget 2011-2012 as "progressive" and "balanced", stock market experts said it had positive surprises like encouraging FII inflow, a roadmap for reforms and checking fiscal deficit, all of which have perked up investor mood.
RBIs next series of financial sector reforms includes bank consolidation and laying down a roadmap for the further participation of foreign banks. The central bank also aims to contain risks from connection between banks and financial entities.
As giants collapsed all around, India stood firm in the face of global recession. Now, as Finance Minister Pranab Mukherjee sets the fiscal agenda for Budget 2010, India is at the cynosure of the world's attention.
Finance Minister Pranab Mukherjees Budget 2009 has come in as a disappointment for India Inc and the market. The septuagenarian remained silent on key points like the revamp of fuel policy, corporate tax, and the disinvestment roadmap.
Andrew Holland, DSP Merrill Lynch, tells Moneycontrol that retail, power and infrastructure sector reforms can help India grow annually by 8-10% for the next decade. He also expects and increase in STT.