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from Expert Zone:

Budget 2014/15 reveals priorities, sets the stage

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The new Narendra Modi government rides on a long wishlist of policies and reforms, with limited resources. Budget 2014/15, as expected, reveals the government’s priorities in the near and medium term.

Arun Jaitley poses as he leaves his office to present the union budget for the 2014/15 fiscal year in New DelhiThe inflation moderation imperative overshadows near-term headline growth desires, manifested in aggressive (albeit challenging) fiscal deficit targets. The projected fiscal deficit of 4.1 percent (3.6 percent of GDP in FY16) versus the 4.6 percent recorded in FY14, is in line with expectations. The reduction in the budget deficit is driven by hoped-for revenue growth rather than depressed spending growth.

The spending mix is forecast to improve towards more plan and capital spending, which should bode well for the growth outlook. Curtailed non-plan spending growth and subsidies are also a positive.

This budget sets the stage for a future pick-up in growth, rather than drive acceleration in real GDP this year. It does outline both policy initiatives as well as specific schemes (albeit with yet limited fund allocation) to support medium-term growth recovery.

from Breakingviews:

Modi win is blow for Tesco, good for investors

By Andy Mukherjee 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A win for Narendra Modi would be bad news for Tesco and its rivals, but good news for other investors. The Indian opposition leader’s party says it won’t allow foreign supermarkets to enter the country if it wins the general election. But that is just one discordant note in a manifesto that is sweet music to financial markets.

from India Insight:

“People need to be allowed to do business” – The Arvind Kejriwal interview, part 2

(This article is website-exclusive and cannot be reproduced without permission)

By Frank Jack Daniel and Sruthi Gottipati

Arvind Kejriwal, Delhi's new chief minister, stormed to power in the national capital in December on an anti-corruption platform.

His Aam Aadmi Party, or "Common Man’s Party", uses a broom as its symbol to suggest it is sweeping the dirt out of politics. Kejriwal, a bespectacled former tax collector, spoke to Reuters in a wide-ranging interview a month after getting the top job, from the same modest apartment he’s lived in for the past 15 years. What follows is a lightly edited transcript of the second part of the interview. Reuters will publish the third and final part on Sunday.

from Expert Zone:

Time for a relook at FDI in insurance intermediaries

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Insurance companies in India have an FDI limit of 26 percent, which may be revised upwards in the coming months. The industry requires funds to grow and the revision can be an enabler, but the process may take some time as it requires legislative approval and there seems to be some opposition to the move.

Since the industry is still in its nascent stage, the insurance regulator also places the same FDI cap on insurance intermediaries such as brokers and web aggregators, severely limiting their ability to raise funds to grow their business.

from Breakingviews:

Quitting China is all about knowing how to go

By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

An increasing number of foreign businesses are folding their tents in China. Multinationals used to be desperate to get into the People’s Republic. Now, as easy growth vanishes, leaving China is becoming less unusual. While some have kept a foot in the door, others have made a show of slamming it.

from Expert Zone:

How to rescue the falling rupee

(Any opinions expressed here are those of the author and not of Thomson Reuters)

I can’t predict where the rupee will eventually land and I don’t think anyone else can either.

Of course, we are not the only country at the mercy of the dollar because almost every emerging market is suffering. But surely, that shouldn’t be any consolation.

from Expert Zone:

Indian telecoms at the crossroads again

(The views expressed in this column are the author’s own and do not represent those of Reuters)

In the 18 years I have been working with Indian telecoms operators, I can recall several points where I felt the industry was at a crossroads in its evolution.

from Breakingviews:

India new FDI rules show welcome long-termism

By Andy Mukherjee

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Hurrah for long-termism. India has decised to open up local industries, including its telecoms sector, to greater foreign participation. It may not create a rush of new investments, but it should lead to a modest improvement in confidence.

from Global Investing:

Turkey: investment grade, peace and FDI?

Turkey's elevation to investment grade last week may or may not be a game changer for its stock and bond markets, but the country is really hoping for a boost to FDI - bricks-and-mortar foreign direct investment  into manufacturing or power generation. Its peace process with Kurdish separatists should help.

Speaking last week at Mitsubishi-UFJ's annual Turkey conference, Finance Minister Mehmet Simsek cited data showing an average 2 percentage-point pick-up in FDI in the two years immediately after a country moves into investment grade.

from Global Investing:

India’s deficit — not just about oil and gold

India's finance minister P Chidambaram can be forgiven for feeling cheerful. After all, prices for oil and gold, the two biggest constituents of his country's import bill, have tumbled sharply this week. If sustained, these developments might significantly ease India's current account deficit headache -- possibly to the tune of $20 billion a year.

Chidambaram said yesterday he expects the deficit to halve in a year or two from last year's 5 percent level. Markets are celebrating too -- the Indian rupee, stocks and bonds have all rallied this week.

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