It is natural that no one like bad news and comments . So it was expected that Indian Finance Minister will reject the comment of S&P made on 11th June dragging the INR furthur down . The impact was so much that INR fell by about 50 bps after this news came to Market . Does it make any difference if Indian FM make a customary statement denying the S&P report and saying that our Economy is under control , S& P view is based on the Economic data published by the Government of India . India has increased its Trade & Current account deficit significantly . India BOP is negative . Inflation which was 10%+ for long time came down but again looking to climb up . Stock market is flat/ decreasing . Fiscal deficit is alaraming and no step of Government indicating that it will improve in FY13 . GDP data and IIP data is dissapointing . Government has not announced any big ticket policy decison in last two year . So what is surprising if S&P says that they may down grade the Investment grade rating of India to JUNK category ??
Instead of giving general statement Government should act very quickly to restore the confidence of all stake holders of Indian Industry and Global Investors . What Government should do
1. Take immediate decison on Disel Pricing as make it market driven , remove subsidy on it . Government subsidy burdon will come down and fiscal deficit will improve
2. Government should announce FDI in Multi Brand retail and aviation sector immediately .
3. Pass some important legislation in next 6 Month ( GST , DTC , Company Act , Banking and Insurance and Pension law )
4. Make the Land acqusition law clear and transparent
5. Clear the confusion in Power Industry
6. Some step to bring back Black Money , although it is not possible to bring the entire Money in one go
7. Curtail unwanted import of Gold to the Country to certain reasonable level .
Instead of giving general statement Government should act very quickly to restore the confidence of all stake holders of Indian Industry and Global Investors . What Government should do
1. Take immediate decison on Disel Pricing as make it market driven , remove subsidy on it . Government subsidy burdon will come down and fiscal deficit will improve
2. Government should announce FDI in Multi Brand retail and aviation sector immediately .
3. Pass some important legislation in next 6 Month ( GST , DTC , Company Act , Banking and Insurance and Pension law )
4. Make the Land acqusition law clear and transparent
5. Clear the confusion in Power Industry
6. Some step to bring back Black Money , although it is not possible to bring the entire Money in one go
7. Curtail unwanted import of Gold to the Country to certain reasonable level .
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