REFORM POLICIES
Here's a two-pronged approach to navigate an ever-rising stock market
Despite the Modi regime's progressive policies ensuring macro-stability, the 2019 super-rich surcharge raises doubts, especially in view of the poor election show of the BJP. Markets however defied election outcome pullback expectations, hitting new highs. In such a scenario, investors should monitor policy changes and consider phased investments.
Path towards structural reforms and fiscal prudence will continue in Budget 2024: Navneet Munot
Markets are at a new high. It is definitely a cause of celebration. It reflects India's macroeconomic fundamentals. It reflects that India has got political stability, macroeconomic stability, financial stability. There is tremendous faith on the government's policy continuity.
NITI Aayog calls for policy and legal reforms to regulate use of facial recognition technology (FRT) in India
In a report, prepared by the Vidhi Centre for Legal Policy on behalf of the Aayog, it had proposed imposing liability and the extent of liability arising from any harms or damages caused by the use of facial recognition technology (FRT) system. Besides, the Aayog has suggested a need for an ethical committee to address issues pertaining to transparency, accountability, and biases emanating from the use of such systems in India.
Go back to schools to root out NEET-type malaise
The high-powered committee on entrance exam reforms, set up following the NEET-UG fiasco, is learnt to have received several of these inputs. Academics, experts and officials associated with the education ministry over the years have highlighted the urgent need to restore the primacy of school-level teaching and learning and for more 'distributed' school-level weightage in entrance exams.
8% GDP growth not sustainable yet; bond index inclusion may see short-term volatility: Abheek Barua
After the inclusion in the JP Morgan global bond index, in the short term. we need to prepare for volatility. But in the long term, the collateral and the second-round benefits are huge, says Abheek Barua. He expects this to lead to an improvement in the fixed-income ecosystem, which unfortunately has not taken off that well
Fiscal discipline key to India's growth prospects: Sanjay Nayar
So, we will have to also think about how we channel the energies towards more advanced and more modern techniques and technology, because that is what we need right now.
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Budget 2024: What is Dividend Distribution Tax? Know How it will abolition impact the Indian economy?
In 2020-21, India's government abolished the Dividend Distribution Tax (DDT), shifting the tax burden on dividends from companies to shareholders directly. The move aimed to simplify taxation, enhance market appeal for Indian equities, stimulate domestic investment, and potentially attract more Foreign Direct Investment (FDI) into the country's economy.
ETMarkets Smart Talk: FMCG & IT stocks provide valuation comfort compared to historical valuations: Vipul Bhowar
Populist policies will likely take precedence to secure victory in a coalition setup. Key cabinet portfolios, particularly those related to finance, defence, and infrastructure, will be closely monitored.
'Join the revolt': UK's Farage to lay out election policies
Farage is one of Britain's most recognisable and divisive politicians and has pressured successive governments into more aggressive stances on cutting immigration. He played a pivotal role in the 2016 vote to leave the European Union.
ETMarkets Smart Talk: Rural consumption could top priority in Modi 3.0’s final Budget in July: Vinay Jaising
The BJP led NDA alliance is confident of forming the government for the third time consecutively which has not happened in India since 1962 when the Nehru led Congress was in Power; and an extremely spectacular event.
Arunachal CM Pema Khandu to launch new industrial policy and reforms to boost investment and development
Arunachal Pradesh Chief Minister Pema Khandu announced the introduction of a new Arunachal Industrial Policy, aligned with the UNNATI Scheme, to attract investments. After being sworn in, Khandu convened a Cabinet meeting to launch Reforms 3.0, focusing on 24 citizen-centric initiatives. Priorities include 100% digitalization of Finance and Planning Departments, strengthening local administration, and forming the Institute for Transforming Arunachal. Plans also include a new educational policy, revamped Dulari Kanya Scheme, enhanced agricultural policies, and the development of Itanagar-Naharlagun. Additionally, new handloom, handicrafts, and tourism policies will be introduced to boost the economy.
ETMarkets Smart Talk: There will be FOMO among long only FIIs in Modi 3.0: Sorbh Gupta
On the day of the result, the market experienced increased volatility. But we anticipate that this volatility will lessen over the coming days and that the market's attention will eventually switch to macro and solid fundamentals, which continue to remain strong.
Why is Nigel Farage being pelted very often with rubbish?
Nigel Farage, a right-wing politician from the UK is being frequently attacked with rubbish due to his unpopular views. The UK Home Office has taken a serious view of these recent incidents.
ETMarkets Smart Talk: Modi 3.0 unlikely to be over-populist at the cost of compromising fiscal discipline: Amar Ambani
In my opinion, the election event is done and dusted, and the market won’t read too much into it, to endure drastic corrections akin to the knee jerk reactions seen on poll outcome day.
Modi's 'lower political capital' to hit implementation of tough reforms, says UBS
A Swiss brokerage stated that Prime Minister Narendra Modi's 'lower political capital' may hinder the new government's ability to implement tough reforms, potentially limiting the growth rate to around 7.5%. UBS Securities highlighted the importance of reforms related to land, farming, divestments, Uniform Civil Code, and one nation one election to boost growth to over 7.5% in the next five years.
Economists expect big-bang reforms to continue under Modi 3.0
Modi is set to be sworn in for third term as India's Prime Minister in coalition government with key partners Telugu Desam Party and Janata Dal (United). Economists anticipate focus on economic reforms to achieve goal of Vikshit Bharat by 2047. Budget to prioritize infrastructure, manufacturing, and welfare schemes amid global economic challenges.
IMF lauds Sri Lanka for strong progress
Sri Lanka's macroeconomic policy reforms are showing positive results as the IMF anticipates agreements with external commercial creditors soon, signaling progress towards the country's $2.9 billion bailout program. The International Monetary Fund praised Sri Lanka's advancements in debt restructuring, highlighting the nation's strong efforts in addressing its financial challenges.
Modi 3.0: How different will be the third Modi government
Narendra Modi is scheduled to take take oath for the third term as India's Prime Minister in a changed political landscape. Allies demand concessions, potentially affecting economic agenda. Expectations for populist budget with focus on welfare and rural areas, though concerns raised over economic impact. Reform agenda may face challenges due to weakened mandate, but continuity likely in infrastructure investment and business environment improvements.
Lok Sabha results won't force India's budget to make significant policy shifts: Fitch
Fitch Ratings anticipates minimal policy shifts in India post-election losses. The upcoming July budget will detail economic reform plans and fiscal goals for the next five years, crucial for addressing fiscal metrics, reducing debt, potential deviations from capital expenditure commitments, the risk of heightened social spending, progress in judicial reforms at the state level, and reforms in the manufacturing sector.
Growth needs to be made more socially equitable and inclusive: Navneet Munot
We had GDP growth of 8%. Inflation well contained. If you look at external sector, whether you look at our current account, whether you look at our balance of payment, whether you look at foreign exchange reserves in a good shape. Relative to rest of the world which is dealing with so many challenges, I think India stands out.
India Inc cheers continuity at the Centre, but rues fragility
Indian industry leaders express confidence in the economy's resilience despite the NDA-BJP government's unexpected outcome without an absolute majority. They anticipate policy continuity but caution about potential hurdles due to a stronger opposition and diverse political ideologies. The focus may shift to consumption, welfare schemes, and rural sectors. Stability is crucial for reforms, but the BJP's shortfall could complicate passing contentious reforms. However, the economy's growth agenda is expected to continue, with an emphasis on inclusivity and job creation.
Expect broad policy continuity with focus on capex: Ratings agencies
Economists emphasize the new Indian government's need to focus on growth, job creation, fiscal stability, tax reforms, and risk management. Reforms in land, labor, and capital markets are crucial, along with fiscal consolidation and increased government spending to attract private investments. They suggest balancing pro-consumer policies in agriculture and tackling judicial delays. These efforts aim to sustainably boost job creation and income levels, with the potential to raise India's economic growth to 7.5-8% over the medium-to-long term.
Market will soon start acting and reacting to economic fundamentals
The unexpected election results and resulting uncertainty have triggered market jitters, reminiscent of similar situations in 2004 and 1991
Stay patient; don't dabble in risk right away: Maneesh Dangi
It is still likely that Modi would return, but the best case scenario for the market would be a Vajpayee like Modi versus one which continues to have animosity with state because that setup would be very-very bad for market.
Macro policy choices unclear, but work cut out on reforms agenda
In FY24, nominal GDP grew 9.6%, CPI inflation recorded 5.4%, and real GDP growth was estimated at 8.2%.
Modi retaining power under changed circumstances to make reforms challenging: Economists
Economists warn that PM Narendra Modi's retention in power after the general elections under 'changed circumstances' will pose challenges for implementing critical reforms.
Market will wait for policy recalibration before taking a portfolio call: Nilesh Shah
One policy recalibration which probably will happen is that there will be more support to consumption at the bottom end of the pyramid and for mass market product. Now, with that kind of policy recalibration, markets will then adjust to a new level and try to build scenario.
Don't see any material changes in policies going ahead: Rajeev Thakkar
And if we step back what does the election outcome mean for the markets? So, barring the pre-election and post-election for a week, 10 days, people will move on.
We are poised to open a minimum of 25 hotels this year: Puneet Chhatwal, IHCL
I think as things are beginning to normalise, this global travel will also start coming back. And as of this October, we should see us getting close to the pre-COVID level. And it is only next year that India will cross the international arrival numbers that it had prior to COVID.
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