Straight from the Specialists
(Any opinions expressed here are those of the author and not of Thomson Reuters)
The market is pregnant with expectations of a change after the general elections which must be held by next May. You would have to travel far and wide before you come across anyone in India’s financial market who is not hoping – even praying – for change.
The mood on the current policy direction is so gloomy that any alternative is looking like manna from heaven.
I am obviously not competent – I doubt anybody really is – to predict the outcome of the elections. In a vast and varied country like India, forecasting national trends with any degree of reliability is hard. But it is safe to say that a strong momentum for change is being built by BJP’s prime ministerial candidate Narendra Modi.
While a victory for the BJP is far from certain, it is still pertinent to reflect on what a Modi-led central government could mean for the markets and the economy.
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The government’s cash transfer scheme (CTS) has been accepted by economists as the most efficient method of delivering subsidies to the poor. This became possible with the identification of the poor after the introduction of “Aadhaar” or unique identity scheme. The scheme is going to be implemented from the beginning of 2013.