Page 3 - Madan Sabnavis

Capex measures to deliver the goods rather than the consumption booster

States and centre would be spending more on projects like roads, urban development, defence as a result of Finance Minister's announcements.

RBI's focus has been on liquidity provision in the right areas

With inflation targeting being the rule, the relentless high levels of CPI inflation were to be the barrier to any further cut in interest rates

GDP data: No surprises here; need different policy measures to stem the rot

The only sector to show growth is agriculture, while the government sector disappointed with public admin de-growing by 10.3 per cent

RBI transfers its surplus to the govt, but the deficit is just too wide

The amount may not be very significant in terms of supporting the govt finances as it would be around 0.25% of GDP against an expected fiscal deficit of close to 8% for 2020-21

Pragmatic view taken by the RBI; still expect rate cuts going ahead

The repo rate call was a tough one to take considering that inflation is high and at the upper level of the band

More fiscal disturbance to be expected as the lockdowns are extended

Govt accounts for first two months of the year show tax revenue at Rs 1.26 trillion compared with Rs 2.14 trillion last year. There has been a sharp decline in GST collections of Rs 57,000 cr

RBI buttresses earlier position forcefully; economic forecasts conservative

The central bank cut the repo rate by 40 bps to 4% and the reverse repo rate was brought down to 3.35%

Covid-19 impact: Missing disinvestment targets will have consequences

Any slippage in disinvestment numbers combined with other revenue shortfall would mean the govt would have to borrow more in the market

RBI's rate cut provides the much-needed balm to revive the economy

The repo rate has come down by 75 basis points to 4.4 per cent, while the reverse repo rate has been lowered by 90 basis points to 4 per cent now

FM's proposals aimed at protecting loss of livelihood; delivery will be key

The outlay is to be Rs 1.7 trillion - around 0.75% of gross domestic product (GDP) and can be taken to be a fiscal stimulus

GDP growth higher than expectations, but no Covid-19 impact spoken of

Q3 GDP growth, which has come in at 4.7%, could be the precursor to an even higher growth number in Q4 which should be around 5%

Budget proposals are not really a stimulant amid lack of big-bang steps

The fiscal target seems to be reasonable at 3.5 per cent but dependent heavily on how GDP progresses

Moody's outlook downgrade for India: A wake up call, but not justified

Moody's has not considered the fact that the government has been addressing various issues to help the economy.

Rupee can depreciate another 4% against the USD by 2019-end

FPIs have turned negative and the budgetary announcement on tax surcharge has been a factor that has restricted their activity

GDP numbers raise some serious questions about the state of the economy

Low index of industrial production growth coupled with less than 5% growth in corporate sector topline has been indicative of a low economic performance in the quarter

Union Budget 2019 manages the numbers with a few surprises

While the speech has focused on the main thrust areas, benefits have been provided to specific sectors like affordable housing and electric vehicles

Lowering rates may not really lead to the push required for growth

A cut in repo sends strong signals to the market that has to, in turn, pick-up the cues

Time for manufacturing-related issues to be addressed with alacrity

The new government has to work towards reviving manufacturing as it is the sector which creates jobs.

US-China trade war escalates: What are the implications for the world ?

Trump had not minced any words on the volume of imports that would now be taxed at 25 per cent instead of 10 per cent

RBI's new market-friendly policy indicates there could be more cuts ahead

The decision to lower rates is surprising because the main factor which determines policy decision, i.e. CPI inflation potential remains unchanged