Expert Zone
Straight from the Specialists
Budget 2012: Politics is the art of the possible
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The stream of criticism directed at the 2012-13 budget misses the point that this is the best the coalition government could offer under the circumstances.
Talking about “lost opportunities” assumes that there were some opportunities to start with. Surely the rapid reversal of important decisions such as FDI in retail distribution, the exports of cotton and the hike in rail fares should have signalled very clearly the limits imposed. The resignation of the minister involved is rather sad as the cabinet should have backed him given that the hike was a collective and not an individual decision.
Outsiders may point out that India can grow at 12 pct and 13 pct and not just at 6 pct – 7 pct, but the Indian democracy, that is the will of the Indian people, wishes otherwise.
Is the fiscal deficit phony?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The stock market did not respond positively to the budget in spite of the cut in Securities Transaction Tax (STT) and the provision of tax benefits to retail investors for investment in equity because of the trust deficit in budget arithmetic. The fiscal deficit is too high and could also escalate during the year considering that the assumptions on which it is based are not realistic.
Scary oil
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Today’s fragile global economy faces many risks: the risk of another flare-up of the euro zone crisis; the risk of a worse-than-expected slowdown in China; and the risk that economic recovery in the United States will fizzle (yet again). But no risk is more serious than that posed by a further spike in oil prices.
India Market Weekahead: Global markets, FII action to be primary drivers
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It was a flattish close for the markets in what was supposed to be an eventful week. But the biggest event — the budget – turned out to be a non-event.
The rare earths distraction
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The U.S., EU and Japan are suing China in the World Trade Organisation (WTO), calling Chinese export quotas on rare earth elements an illegal trade practice.
Afghanistan: Negotiating while withdrawing is poor strategy
(The views expressed in this column are the author’s own and do not represent those of Reuters)
In the wake of a U.S. Army staff sergeant’s murdering 16 Afghan civilians (mostly women and children), U.S. officials are contemplating the pace and scope of the U.S. troop drawdown from the country. At the same time, they are seeking a negotiated settlement with the Taliban leadership. U.S. and NATO Commander in Afghanistan General John Allen said yesterday that he did not foresee an accelerated drawdown of U.S. troops because of the shooting incident, but it is almost inevitable that this terrible tragedy will lead Americans to question the viability of the U.S. mission there.
Budget 2012: IT sector expects tax measures
(The views expressed in this column are the authors’ own and do not represent those of Reuters)
The technology sector is set to cross the $100 billion mark this year with $69 billion from exports and $32 billion from the domestic market. This is a healthy increase of around 16 pct over last year’s growth despite global economic events such as the anti-outsourcing bill in the U.S. and the euro zone crisis which had an impact on the sector.
Budget 2012: Need for innovative incentives
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Every year as winter gives way to spring, a nation of over a billion wakes up to different expectations on Budget day.
It’s Budget week but be ready to book profits
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The markets ended in negative territory for the third straight week after the ruling Congress party suffered a setback in the recently held assembly elections, clouding the government’s ability to push major economic reforms. However, a sharp pullback of 2 percent seen on Friday saved the indexes from suffering major losses.
India Inc hopes for action on GST
(The views expressed in this column are the author’s own and do not represent those of Reuters)
India Inc has time and again expressed its desire for early implementation of Goods and Service Tax (GST). While implementing GST may take at least a year, the 2012 budget will clearly indicate the Centre’s seriousness in implementing GST.
