Economic reforms will continue to gain momentum in coming years as the country looks to push growth and attract investment in the infrastructure sector, Finance Minister Arun Jaitley said today.
For a further rally from current levels, the government now has to walk the talk in terms of reforms.
In particular, all eyes are on UP and Punjab, two key states in which the BJP faces a tough battle; the outcome could have a bearing on policy-making and economic reforms at the Centre.
The new Goods and Services Tax (GST) will subsume a number of indirect taxes at the state as well as central level and is targeted for rollout from April 1, 2017.
Hoping India will improve its ranking on World Bank's Ease of Doing Business Index, eminent economist Kaushik Basu has said the government also needs to be more active in promoting cohesiveness and diversity in the society, as economic reforms with political and social inclusiveness can help the country regain 9.5 per cent growth rate.
Senior Congress leader P Chidambaram on July 4 said credit cannot be taken away from late Prime Minister P V Narasimha Rao for the economic reforms driven by him in the 90s but Ayodhya "blotted his record"
Morgan Stanley's Chief Global Strategist Ruchir Sharma on June 29 said no "great" economic reforms are expected from the Modi government as the best time for major policy initiatives is the first two years of a new government
Many US policymakers and stakeholders are concerned that neither the Indian government's "rhetoric" nor America's bilateral engagement with it has led to substantial economic reforms in India, according to a report by US Congress' research wing
Hailing the landslide victory of Trinamool Congress in West Bengal assembly polls, industry leaders on May 19 said the state can play an important role in the passage of long-stuck GST legislation with Chief Minister Mamata Banerjee reiterating her support to the bill
"The IMF is quite bullish about India, and our forecast for 2016, 2017 is 7.5 percent growth," Lagarde said in response to a question at the University of Maryland yesterday. "So we see India as benefitting, actually it's one of the major beneficiaries of the lower oil prices
"At the same time there are a whole set of new businesses coming in that we have to find ways to deal with. For example, online lending. How do we do with what happens in a downturn?" Rajan said.
The reforms carried out by the government are going to result in an earnings gain for a lot of companies and one will have to dig deeper into themes that will likely benefit from the change, says Dipen Sheth of HDFC Securities.
Prime Minister Narendra Modi's approval ratings still stand high at 74 percent but that's also partly because he has no national-level challenger, says Anil Padmanabhan, Political Editor of Mint, which conducted a poll on the popularity of the PM and his NDA government.
According to Rob Marshall-Lee of Newton Investment Management, there is also a lot of pent up demand post the slowdown, Economy was stifled under the previous government, he says. The Narendra Modi government is pushing for economic reforms
Admitting that some irresponsible statements by certain BJP functionaries during the course of elections did change the narrative, Jaitley said the "index of opposition unity" was one of the biggest factors that led to the victory of the Mahagathbandhan in the Bihar assembly elections.
Modi's administration has faced a rising tide of criticism for failing to rein in hardline Hindu groups that are campaigning for issues such as cow worship in a multi-faith country.
Sources said the ministers want Greece to endorse further economic reforms in return for a third bailout estimated at more than 80 billion euros.
As global stocks fall, so will Indian indices. But our market decline will be shallower than that of the others, for we are fundamentally a domestic demand-driven consumption economy. The psychological impact of a global stock decline will wear off.
The Minister said India's seven plus percent growth rate came backdrop of a terrible monsoon last year and a second round of crop destruction in March this year.
India has taken important reform steps in the past months but it still more needs to be done to attract foreign investments in particular those from the US.
Lew said the US has made it very clear that this is a very problematic set of proposals that China put forward. "I, together with the Secretary of State and the US Trade Representative, wrote to the Chinese leadership to make clear that we thought that they needed to stop that from taking effect," he said.
The government is increasingly appear to be weak in its ability to push through crucial reforms. That may spell bad news for the "Modi rally".
The legislations on coal and minerals, he said, will be carried through "relatively easy" because they are "logical and rational". With the government having problem with numbers in the Rajya Sabha, he feels that there is an "obvious obstacle" when it comes to reforms measures that require legislative approval.
Jaitley's comments assume significance against the backdrop of experts raising questions whether the government would resort to populism in the wake of electoral reverse.
The government has introduced many reforms through legislation, including GST, as against a few via the ordinance route and is committed to making India a business friendly destination, Minister of State for Finance Jayant Sinha said today.