My blogs are only subject oriented - Finance, agriculture, MSMEs, Cooperation, Corporate Governance etc. Do not relate to any comments on caste, religion, sex etc.
Tuesday, February 17, 2015
Sunday, February 15, 2015
Budget Hopes and Hypes
Fiscal balance |
Union Budget 2014-15 was
more on aspirations. It had to address the legacy issues. But 2015-16 Budget in
the wake of series of policy announcements by the NDA government during the
last nine months has promised to be progressive and inspirational. The recent
statements of FM leave more expectations on this count.
Notwithstanding the hope of the World Bank President
the dragging growth in farm and manufacturing sectors is still a matter of
great concern and this led to pragmatic low pitch by the RBI at 5.5-5.7 percent
growth at the end of this fiscal.
Inflation has come down but the fundamentals are
still weak; gross domestic savings has not improved markedly; credit has not
picked up. The domestic food and vegetable prices are yet to record the type of
decline that would give confidence to the RBI to tame further the lending
rates.
The 14th Finance Commission handed over
its Report to the President. Once it is tabled in the Budget session, the new
formula of dispensation of resources among the States and Union and between the
States and the sub-states would lead the budget formulations.
Expectations on the Finance
Minister:
Sunday, February 1, 2015
Ten Point Agenda for MSMEs in Brand India way
New Year leaves many in
hope with the MSMEs no exception. Their share in GDP at around 8% currently has
prospects of moving to 15% by 2020 according to a KPMG-CII Study in October
2014. Hopes are built on the double digit growth of a few manufacturing sectors
by that time and the FDI interventions in defense, pharma and infrastructure
sectors. Not so encouraging, however, is the decline in credit growth in the
manufacturing sector from 13.7% a year
ago to 7.3% in December 2014.
The Government has no
doubt infused some confidence building measures, like a few start-up Funds for SC
entrepreneurs, revisiting the definition of the MSMEs and credit policies.
Action seems to be far slower than announcements. Even earlier there were 32
Funds announced for the sector at different points of time that did not create
the impact one would expect.
At least ten things need
to be done by the Government if the MSMEs should move to building brand image
for India and they will be all in any case, Make-in-India only.
Saturday, January 10, 2015
New Year Bites 2015
For the New Year:
Year 2014 can be termed as
year in waiting. People waited with bated breath for the policy paralysis to
end and for the economy to start growing to its potential. Post elections, the
wait did not however end. There have been announcements more than achievements
and promises more than performance. 2015 would therefore be a demanding year
for the rulers.
The crude shocks elsewhere
brought some cheer to India in containing its current account deficit and
inflation that touched unsustaining levels in March 2014. Stock markets reacted
favourably with the indices taking the highest ever jump of 6000 since the last
General Elections. They shocked the investors with a peak in the crash on the 7th
January 2015 led by yet another decline in global oil prices and other
commodity prices.
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