Straight from the Specialists
(Any opinions expressed here are those of the author and not of Reuters)
After the sustained hype of a game changer budget, Budget 2013 was a totally run-of-the-mill affair with no announcements of any kind of deregulatory or growth propelling initiatives.
True enough, some of the more promising measures taken in the last 12 months were not related to budgetary statements. Not surprisingly, the Sensex greeted Budget 2013 by falling.
Going forward, what may sustain the equity market is further improvement in inflation which may allow the Reserve Bank of India (RBI) to cut rates again.
Rather than recount the usual mix of tax rises (surcharge on high incomes) and minutiae such as removing excise duties on handmade carpets but adding an extra 3 percent excise on SUVs because “they occupy more parking space”, here are some points of more macro substance: