F16, the hopes are high

With the new elected NDA government focused over bringing economic reforms, it looks as a new dawn for the Indian economy is on the verge. The recent debates going on in the parliament regarding land acquisition act, the points given by the FM in support of the amendments show clearly the intentions of this new govt. to push the reforms. In the current scenario, the Indian economy seems facing a halt due to many pending projects due to inefficient land acquisition act. The recent example of it is the ongoing dispute be in the Korba region where acquiring just 6 sq. km seems to be an arduous task for the government. It is estimated that, with the much debated 6km land acquisition in the Gevra mine, CIL can extract coal that can cater to the need of Indian power demands for the next 10 years.

It will be interesting to see the developments in the NDA strategy to bring a spur in the Economy in F16. With the current statistics of CPI and WPI, though the reasons are the supply side fluctuations due to the fall in crude oil prices, a willing support has been laid by the governor of RBI by decreasing the rates. It is a very good opportunity for the government to cut down its expenses and meet the targets of fiscal deficit for F16. Increasing the earnings by disinvestment process and auctioning of coal mines and spectrum will further support it. But this approach was good for the year that has just gone by. For F16, eyes will be on the policies of the govt. which will decide whether F16 will see its target of fiscal deficit meeting through disinvestments and auctioning or the approach will be increasing the revenues by means of development of infrastructure and policies in favor of the businesses. The response of the FIIs and the entrepreneurs will decide whether F16 will truly be an year of revolutionary GDP growth of over 8% as anticipated by many or will be a flop show again. Bringing foreign investments, promoting industrial production are the aspired vision of the Indian government and only the time will tell if F16 will see economic growth of the nation.

Ashish