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Govt to soon bring bill on crypto currencies: MoS Finance Anurag Thakur

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Replying to a question in the Upper House, Anurag Thakur said regulatory bodies like RBI and SEBI do not have any legal framework to directly regulate crypto currencies as they are not currencies, assets, securities or commodities issued by identifiable users.

Image: Wikipedia/Government of India


The government will soon bring a bill on crypto currencies as existing laws are inadequate to deal with issues concerning them, Minister of State For Finance Anurag Thakur told Rajya Sabha on Tuesday.

Replying to a question in the Upper House, Thakur said regulatory bodies like RBI and SEBI do not have any legal framework to directly regulate crypto currencies as they are not currencies, assets, securities or commodities issued by identifiable users.

"The existing laws are inadequate to deal with the subject,” he said.

The government had formed an Inter-Ministerial Committee which has given its report on issues related to virtual currencies.

There was also a meeting of the Empowered Technology Group.The Committee of Secretaries chaired by the Cabinet Secretary has also given its report.

"A bill (on crypto currencies) is being finalised and it will soon be send to the Cabinet. We will soon be bringing a bill,” Thakur said.

In view of the risks associated with Virtual Currencies (VCs), including Bitcoins, the Reserve Bank of India (RBI) through a circular in April 2018, had advised all the entities regulated by it not to deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs.However, Supreme Court, vide judgement dated March 4, 2020, had set aside the RBI’s circular.To another question regarding Chinese companies in the country, the minister said as of now, there are around 92 companies registered in the country.

Out of them, 80 Chinese companies are actively working in India.

Growth, inflation outlook portends 'more than full recovery' in 2021-22: FinMin report

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The latest Economic Survey projected growth rate to rebound to 11 percent during 2012-22 while the Budget estimated real GDP to be between 10-10.5 percent.

India Economy

India Economy

Painting a rosy picture of the economy, the finance ministry's monthly report on Tuesday said growth and inflation outlook for 2021-22 portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world.

"The structural reforms and the policy push under the Aatmanirbhar Bharat Mission along with the slew of measures announced in the Union Budget 2021-22 towards achieving broad-based inclusive growth will strengthen the fundamentals of the economy and bring it back on to a strong and sustainable growth path in the year ahead," the ministry's Monthly Economic Report said.

Growth and inflation outlook in 2021-22, "portends more than full recovery", it added. Indian economy is estimated to contract 7.7 percent in the current financial year, mainly due to the coronavirus pandemic.

The latest Economic Survey projected growth rate to rebound to 11 percent during 2012-22 while the Budget estimated real GDP to be between 10-10.5 percent. "FY 2021-22 will be the year to rebuild with the IMF projecting growth of output at 11.5 percent, Economic Survey at 11 percent and the RBI's Monetary Policy Committee at 10.5 percent.

"With the IMF keeping India's growth projections elevated at 6.8 percent in FY 2022-23, India is back as the fastest growing major economy in the world," it said. The Survey pitched for growth through counter cyclical fiscal policy emphasising that growth alone is the answer to sustaining the public debt burden of the country, the report said.

The Survey was presented in Parliament on January 29 and the Budget on February 1. The Budget implemented the counter cyclical fiscal policy by raising the target of fiscal deficit to 6.8 percent of GDP, more than double the FRBM (Fiscal Responsibility and Budget Management) target, the report said.

With the expanded borrowing programme mostly meant for funding the enhanced capital outlay, the Budget has set in place the multiplier impact on growth to support the prescribed fiscal deficit target of 4.5 percent of GDP in 2026 under the fiscal glide path. The report noted that various measures taken by the government since March 2020 against the pandemic ensured minimum loss of life.

"Early lockdown, health-infra ramp up, gradual unlocking, blanket testing, social distancing, calibrated fiscal stimulus to minimise supply side disruptions and revive demand and structural reforms pursued diligently by government since March, 2020 have now come to fruition to limit the fatality rate to globally one of the lowest at 1.2 percent," it said.According to the report, with each day ending with positive COVID-19 cases falling to new lows and economic activity levels attaining new peaks, India has worked its way around the pandemic through the will of the brave people and astute policy interventions by the government.

"The fact that complacency is far from settling in is demonstrated by India administering close to four million doses of COVID-19 vaccine within a span of two weeks since 16th January, 2021 to become the fifth largest inoculated country in the world. "India has not only become the vaccine hub of the world but has also extended assistance to more than 90 nations requesting doses for stocking up," it noted

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Interview | RBI plan to hike CRR to impact borrowing cost for corporates, others, says Joseph Thomas of Emkay

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The RBI's monetary policy complements the Budget in its tone, intent and actions, says Thomas. The measures taken for retail investors are also good but the government should hasten the setting up of a separate debt management office.

Emkay Wealth Management's head of research  Joseph Thomas says the Reserve Bank of India's plan to hike the cash reserve ratio (CRR) will have an impact on the cost of borrowing for corporates as well as other borrowers.

In its final bi-monthly monetary policy review, the Reserve Bank of India left repo rates unchanged at 4 percent and kept the stance “accommodative” on February 5. The reverse repo rate was also kept steady at 3.35 percent and so were marginal standing facility and bank rate at 4.25 percent.

The central bank, however, announced a two-phase plan to restore CRR to 4 percent, a move expected to have an impact on the cost of credit.

"The extended marginal standing facility (MSF) relaxation is good for liquidity and nothing prevents the RBI from injecting liquidity into the system whenever it is required, in its assessment. So, that remains at the core of the accommodative policy," Thomas says in an interview to Moneycontrol's Sunil Shankar Matkar. Edited Excerpts:

Q: What is your reading of RBI policy, especially after Budget 2021? What does the accommodative stance indicate now?

The monetary policy complements the Budget in many ways, in terms of its tone, intent, and the underlying message and actions. The base rate, that is the repo rate, is kept unchanged, and the framework for the provision of liquidity remains the same. In short, the policy remains accommodative. RBI is generally expected to follow the accommodative stance of the policy till sustainable economic growth emerges. The only factor that can bring about changes in this policy is a sustained rise in the price level, the probability of which is very small at this juncture.

Q: The RBI expects FY22 GDP growth at 10.5 percent. It has a strong conviction that in FY22, India will undo the damage of COVID. Do you feel the growth expectations can be achieved or surpass in FY22?

The estimates of GDP growth for FY22, from all major agencies, both domestic and international, have been in the range of 10 to 11 percent. While this growth may not be surpassed, it is almost certain that it may not be substantially lower than that too, given the pick-up in general economic activity, and the rebound in manufacturing and industrial activity.

There are possible disruptors like a second or third wave of the pandemic engulfing our country as also other major countries, escalation of the border issues with China, a steep rise in interest rates, etc. But conviction abounds, in our ability to have better control of things, and thereby, grow much faster.

Q: The RBI has revised its CPI inflation projection to 5-5.2 percent for the first half of FY22 against 4.6-5.2 percent earlier, while the CPI inflation projection has been revised downwards to 5.2 percent for Q4FY21 from 5.8 percent earlier. What is your view? 

The RBI projection of inflation is based on RBI's assessment of the economic conditions, and they also hold surveys on various aspects of the economy, including expected inflation. In the latest survey, the responses summed up to expectations of slightly moderate inflation in the immediate term and more or less the same level of inflation over the next one year or so. RBI estimates are based majorly on this.

On food inflation, we may see lower prices in the coming months due to a better supply of fruits and vegetables after a good winter crop and a better kharif harvesting season but the prices of pulses may remain high. In the non-food category, one thing that may potentially cause some trouble is fuel prices. Brent is already close to $60 a barrel. This may not be good for the general price level as fuel prices have a cascading effect on all major items of consumption. Therefore, the inflation projections, overall, look quite conservative but close to realistic.

Q: The RBI said CRR normalisation opened up space for more options to inject liquidity and announced a two-phase normalisation for CRR. It will gradually restore the CRR to 3.5 percent in March and 4 percent in May. It extended MSF relaxation for another six months. What is your view?

There are shades of rationalising the liquidity management in the RBI policy. The CRR will be hiked by 1 percent-from 3 percent to 4 percent, to the pre-pandemic level-in two phases. This is happening between March and May, so not very far this day. We should note that any CRR measure will have an impact on the credit multiplier. This is a measure which will have an impact on the cost of credit. Lending by banks and also their borrowings will become more expensive over a period of time. It also has implications for the quantum of liquidity because to the extent of the hike in CRR, an equivalent amount of money, by way of a certain percentage of the net time and demand liabilities of the banks, will go into the RBI as part of CRR with the central bank. To that extent, liquidity will get curtailed.

To state this more directly, this measure will have an impact on the cost of borrowing for the corporates as well as other borrowers. The extended marginal standing facility relaxation is good for liquidity, and nothing prevents the RBI from injecting liquidity into the system whenever it is required, in its assessment. So, that remains at the core of the accommodative policy.

Q: The RBI decided to include NBFCs in TLTRO on-tap scheme and will provide funds from banks to NBFCs under on-tap TLTRO. It will incentivise new MSME loans by banks. Will it help NBFCs?

The very objective of Targeted Long Term Repo Operations (TLTRO) is targeted funds, or credit delivery, by banks, making investments into different types of borrowing instruments of specific sectors, which require liquidity support. NBFCs are an integral part of the larger banking and financial services domain and they satisfy a need that is important to our economic growth. The RBI statement is very clear on this, "Given that NBFCs are well recognised conduits for reaching out last-mile credit and act as a force multiplier in expanding credit to various sectors, it is now proposed to provide funds from banks under the TLTRO on Tap scheme to NBFCs for incremental lending to these sectors."

Coming to the MSME financing, the RBI has given the benefit to banks by way of a deduction of the amount advanced from the NTDL for the purpose of CRR maintenance and this would help the banks to offer more credit at a better rate to MSMEs but the success of this programme will depend on the initiative and action of the banks.

Q: Retail investors can now access primary and secondary government bond market. Retail investors can open gilt accounts with the RBI. Is it a surprise? How should retail investors go about with gilt funds?

The objective of the RBI in this is to provide direct access to retail investors. It is not that access has not been there so far. They could access the market through their advisers or brokers and get the government securities purchased and credited to their sub-SGL accounts or demats.

What comes with the new thing is direct access with and through the RBI. This may encourage many investors to open accounts with RBI and start investing. Another useful feature of this action is that it is a reform to the existing system. Under the current set-up, the retail investors accessing markets through brokers or their banks, as the case may be, used to get a retail price for a small lot or an odd lot, which is often much higher than a wholesale price, or a large lot or market lot price. This differentiated pricing for small and odd lots will be eliminated almost completely, which will bring in more efficiency in the market access for small investors.Gilt funds are a good avenue and mode for investing into gilts and they work on NAV, which is common for all investors as of a specific investment date. Gilts funds pickup larger market lots and therefore, they do not have the disadvantage of differentiated pricing. The RBI action is a step in the right direction. But considering the large number of accounts that they may have to open for retail investors, and which need to be maintained and serviced, it would be better if the long-awaited transformation of the debt management function of the RBI into a separate office of debt management of the GOI is realised sooner than later.

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Budget 2021 'booster rocket' for economy, will make this decade 'Roaring 20s' for India: Jayant Sinha

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The impact of this Budget will be that the country will not only see a very strong recovery this fiscal, but also in the following years, India will continue to grow at 7 to 8 percent, said Jayant Sinha, who was the minister of state for finance in the first term of the Modi government.

Jayant Sinha

Jayant Sinha

Describing the 2021-22 Budget a "booster rocket" for the economy, BJP leader Jayant Sinha on Friday said it will place India on the path of non-inflationary growth and make this decade "Roaring 20s" for the country.

This Budget has focused on supply-side investment and this is going to ensure that the country has a non-inflationary growth for very long period of time, Sinha, who chairs the Parliamentary Standing Committee on Finance, said.

"This budget is a booster rocket for the economy. The country is proceeding on a V-shaped recovery path and will immensely benefit from this booster rocket. It will firmly place the country on a non-inflationary growth trajectory, which is going to sustain for a very long period of time," he told PTI.

The impact of this Budget will be that the country will not only see a very strong recovery this fiscal, but also in the following years, India will continue to grow at 7 to 8 percent, said Sinha, who was the minister of state for finance in the first term of the Modi government.

"This budget and the reforms which were carried out by the Narendra Modi-led government in the last six years, will make this decade a decade of Roaring 20s for India," he said.

'Roaring 20s' refers to the decade of the 1920s, which followed after war devastation and the 1918 Spanish Flu. In that decade, the US and several European nations saw prosperity and economic boom.

Talking about fiscal deficit, which is pegged at 9.5 percent of the Gross Domestic Product (GDP), Sinha said fiscal deficit numbers this year includes the spending on the Food Corporation of India (FCI), and those were extra budgetary receipts.

The former Union minister said besides looking at fiscal deficit, it is also important to note where those extra resources were used.

Lot of those resources were used for providing relief to the poor and the marginalised during the coronavirus-induced lockdown. These resources were used to help people during the challenging time, he said.

Sinha also asserted that mega reforms were announced in the Budget, including setting up of an asset reconstruction company and an asset management company to clean up non-performing assets in the banking sector. Setting up of textile parks was also announced, he said.

On disinvestment of Air India, Sinha, who also held the civil aviation portfolio in the previous government, said the intent of the Centre is clear and it is to do a strategic sale of the national carrier.There were issues related to non-core assets, core assets and subsidiaries of the airline, now all those have been dealt with, he said underlining that the disinvestment of Air India is a complicated process.

Read Also:- Budget 2021 lays foundations of $5 trillion economy

He also said for disinvestment of the carrier, the government will also take note of market conditions and also of the aviation sector which has been deeply impacted by COVID-19 pandemic.

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RBI Monetary Policy: Here's where you can watch the announcement live.

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Most economists expect the MPC to vote in favour of a pause on February 5 and continue with the accommodative policy stance.

The Reserve Bank of India (RBI) will announce its monetary policy today after the Monetary Policy Committee (MPC) finishes a three-day meeting.

RBI Governor Shaktikanta Das will make statement on the MPC's decision at 10 am. A post-policy press conference will be held at 12 pm.The RBI Governor's statement and the press conference can be viewed live on the RBI's YouTube channel.

Most economists expect the MPC to vote in favour of a pause on February 5 and continue with the accommodative policy stance, Moneycontrol reported.During the previous policy, the MPC had left the repo rate unchanged at 4 percent.

The MPC's decision comes just days after the Union Budget for 2021-22. During the Budget, the government said it will borrow Rs 12.05 lakh crore from the market in FY22, lower than the Rs 12.80 lakh crore estimated for the current fiscal year.

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Indian rice rates scale 3-year peak; Vietnam hit by container shortage

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Top exporter India's 5 percent broken parboiled variety were quoted at $402-$408 per tonne, its highest since May 2018.

Robust demand from across Asia and Africa sent Indian rice export prices to a three-year peak this week, while Vietnamese exporters struggled to ship due to high freight prices fuelled by a container shortage.

Top exporter India's 5 percent broken parboiled variety were quoted at $402-$408 per tonne, its highest since May 2018.

"Along with traditional buyers, China and Vietnam are also buying from India. There's huge demand," said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Andhra Pradesh will use a deepwater port to export rice for the first time in decades amid a global grain shortage, according to a government order seen by Reuters, which could raise shipments this year by a fifth.

Neighbouring Bangladesh, which has been grappling with limited supply, also bought more than 110,000 tonnes from India with more on its way, a senior Food Ministry official said.

Meanwhile, Vietnam's 5 percent broken rice prices rose to $510-$515 per tonne from $505-510 last week on thin supply.

"Trade is very slow as most of us are already off for the Lunar New Year holiday, and buyers have suspended signing new contracts waiting for the new harvest," a trader based in the Mekong Delta province of An Giang said.

The harvest of the winter-spring crop, the largest of the year, will peak in late February or early March, traders said.

Shipments were also being hampered by high freight charges due to a container shortage.

"Shipments to regional ports have been facing delays, and we can't even book ships for European and African ports," a trader said.

Thailand's 5 percent broken rice prices jumped to their highest level since early April at $535-$564 per tonne, amid concerns over low supplies, while exporters eyed a tender from Iraq, traders said.

Iraq's trade ministry said it intended to procure rice from international suppliers this week.

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Will the RBI Monetary Policy spoil the Budget party on February 5?

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Reserve Bank of India (RBI) Governor Shaktikanta Das

Union Budget 2021, with a sharp focus on growth revival, cheered investors in Indian markets.

Abundant liquidity, promise of massive infra push and announcement on privatisation ticked all the right boxes for stock markets. The next big trigger is the Reserve Bank of India (RBI) policy outcome on February 5.

Most economists expect the Monetary Policy Committee (MPC), the rate-setting panel, to vote in favour of a pause on February 5 and continue with the accommodative stance.

That wouldn’t be a surprise for markets.

In the previous rounds, the MPC has left enough hints to convey that reviving growth is the priority and the panel will remain on an accommodative stance "as long as necessary". After a growth supportive Union Budget, the MPC is unlikely to spoil the party too soon.

In all likelihood, the RBI is expected to announce a pause and continue with the accommodative stance.

What needs to be watched is the central bank's move on the liquidity front. The RBI may announce some early measures to gradually drain the excess liquidity from the banking system. When and how is the question.

“Considering the threat arising from surplus liquidity on inflation, we expect the RBI to focus on squeezing excess liquidity from the system,” said M Govinda Rao, Chief Economic Adviser at Brickwork ratings.

“As there is an unprecedented slump in economic activities caused due to the pandemic, the MPC is likely to continue with its accommodative monetary policy stance and hold the repo rate unchanged at 4 percent till the time the economy gets back to the growth trajectory,” Rao said.

A rate cut is out of question for now.

Since March 2020 (when the pandemic began), the MPC has cut the key lending rate, repo, by 115 basis points. Since February 2019, the rate cuts amount to 250 bps. One bps is one-hundredth of a percentage point. Banks have significantly passed on the benefit of rate cuts to end borrowers subsequently. Still, the central bank may wait to see the full transmission of the policy rates before acting further.

How will the RBI drain the excess liquidity?

That will be a tricky decision.

Bond markets are already spooked with the elevated market borrowings that have accompanied a growth-focused budget. The government will borrow Rs 12.05 lakh crore from the market in 2021-22, lower than the Rs 12.80 lakh crore estimated for the current financial year.

According to the Revised Estimate, the gross borrowing for the current financial year was raised to Rs 12.8 lakh crore as against the Budget Estimate of Rs 7.8 lakh crore, registering an increase of 64 percent.

“The unintended financial tightening amid a nascent growth recovery is neither optimal nor desirable at the current juncture. The upcoming RBI policy will likely to be vociferous on communication on being the heavy-duty balancing factor in Gsec demand-supply ahead,” said Emkay Research in a note.

“We reckon there seems much ado about fiscal dominance of the monetary policy in the current context and monetary policy complementarity is presently needed,” said the note.

The yield on 10-year bonds jumped 15 bps following the Budget announcement. In this context, the RBI may not want to disturb the markets further with harsh tightening measures. Still, the central bank may announce certain measures such as MSS Bonds to manage the liquidity situation, economists expect.

The RBI governor, in the recent past, has acknowledged the fact that a premature withdrawal of liquidity will be detrimental to growth. Markets are pinning hopes on this promise. Madan

 Sabnavis, Chief Economist of CARE Rating agency, said the central bank is unlikely to announce measures to tighten liquidity in this policy.

There is good news on the inflation front. India's Consumer Price Index (CPI), which measures the country's retail inflation, eased to 4.59 percent in December versus 6.93 percent in November, within the RBI's upper band of 6. The Consumer Food Price Index (CFPI) or the inflation in the food basket, eased to 3.41 percent in the month of December, down from 9.50 percent in November. That is a comforting factor for the rate-setting panel.The economy is growing, albeit, slowly. The latest PMI data signals some optimism in the recent months. Bank lending has picked up slowly and restructuring figures show companies are showing better-than-expected recovery. But, the overall growth scenario remains fragile. The economy, facing a contraction this year, is severely hit by the pandemic. Sudden withdrawal of liquidity could hurt the recovery process and spook financial markets.

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LPG price up by Rs 25, fuel prices rise again

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After the current hike, the price of cooking gas in Delhi was seen at Rs 719 per cylinder (14.2 kg), in Kolkata at Rs 745.50, Mumbai at Rs 719, and Rs 735 in Chennai.

LPG

LPG

Pinching the pockets of common man amid rising fuel prices, oil marketing companies raised the price of non-subsidised liquefied petroleum gas (LPG) by Rs 25 in metros on February 4.

After the current hike, the price of cooking gas in Delhi was seen at Rs 719 per cylinder (14.2 kg), in Kolkata at Rs 745.50, Mumbai at Rs 719 and Rs 735 in Chennai. The country's LPG penetration now stands at 99.5 per cent, reaching out to 28.9 crore consumers. Though there was no hike in prices in the month of January, prices went up by Rs 100 a cylinder in Delhi through two hikes in December.

Interestingly, prices of petrol scaled a new peak on February 4 going up by 35 paise a litre to Rs 86.65 a litre in Delhi. Diesel prices were also up 35 paise a litre going up to Rs 76.83 a litre.

Coronavirus News LIVE Updates: Kerala's COVID-19 tally zooms to 9.38 lakh with 5,716 new cases

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Coronavirus News LIVE Updates: Over 39.5 lakh beneficiaries have been vaccinated against COVID-19 in the country till now

Coronavirus News LIVE Updates: Today is the 315th day since India implemented a nationwide lockdown to help curb the novel coronavirus pandemic. So far, India has recorded 1,07,77,284 confirmed COVID-19 cases, including 1,54,596 deaths. A total of 1,04,62,631 people have recuperated from COVID-19 so far. There are 1,60,057 active cases in the country as of date, which comprises 1.52 percent of th
e total caseload, the data stated. India's recovery rate continues to rise and now stands at 97.05 percent. Globally, over 10.38 crore people have been infected by the coronavirus and 22.51 lakh have died so far. Many countries, including India, have granted emergency use authorization for COVID-19 vaccines and have started vaccinating healthcare workers and high-risk groups. India's regulator has granted restricted emergency use approval for two vaccines -- Covishield and Covaxin. Over 39.5 lakh people have been given their first dose of the COVID-19 vaccine in India so far.

Budget 2021 lays foundations of $5 trillion economy

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Monetisation of infra assets, divestment plans of the non-core assets, and conducive tax compliance are likely to attract the much-needed foreign capital.

In basic terms, Union Budget is a financial plan of the government for a year, but in a broader sense, it significantly decides the course of the economy in the long term, too.

In the run-up to the Budget, there were apprehensions that the tight fiscal condition may force the government to increase taxes and cut capital expenditure.

It did not happen.

The Union Budget 2021 showed that India is not ready to lose control of the course of development and showed the commitment of attaining the goal of becoming a $5 trillion economy in the coming years.

In her Union Budget 2021 speech, Finance Minister (FM) Nirmala Sitharaman said the Budget was based on six pillars- (1) health, (2) physical & financial capital, and infrastructure, (3) inclusive development for aspirational India, (4) reinvigorating human capital, (5) innovation and R&D, and (6) minimum government and maximum governance through recapitalisation of PSU banks, proposal to set up a Development Financial Institution, and stabile direct and indirect taxes are likely to provide the much-desired impetus to growth and equity markets after the Covid-induced economic pain, Chandok added.

The government took a bold step on raising the Capex target for the coming financial year even as COVID-19 put tremendous strain on the fiscal maths of the country.

The government’s expenditure on capital formation will rise 34.5 percent to Rs 5.54 lakh crore in FY22.

"The allocation of Rs 5.5 lakh crores in FY22 is a whopping 35 percent growth over the allocation in FY21 which clearly indicates the focus and thrust of the government. Moreover, the monetisation plans by encouraging INVIT structures and financing initiatives through the setting of development financial institutions is another positive move. Overall, the strong emphasis on infrastructure which is a long-term economic growth multiplier is positive," said B Gopkumar, MD & CEO, Axis Securities.

Apart from an increase in CAPEX, minimum government and maximum governance was a key highlight of the Budget that is deemed very important for a growing economy.

Naveen Aggarwal, Partner, Tax, KPMG India pointed out that a single Securities Markets Code is a step in the right direction to reduce overregulation.

"The FM also announced a hike in the FDI limit for the insurance sector to 74 percent from 49 percent by allowing foreign ownership with safeguards. The tax proposals too were crafted keeping in mind ease of compliance, certainty, dispute resolution, and reduce litigation," said Aggarwal.

The government has pegged the disinvestment target for FY22 at Rs 1.75 lakh crore. This will include the reduction of the Centre's stake in two state-owned banks and a general insurance company, and large-scale asset sales.

Gopkumar of Axis Securities said that the proposals for the financial sector which include privatisation of public banks and asset reconstruction company are significant positives for the financial sector. Overall, the budget has checked most of the boxes and will help the economy, he said.

Now, the implementation of the announcements is the key that will decide how the Indian economy will fare in the days to come."The government has also not been constrained by the fiscal numbers and has focussed on spending to get the economy back to its feet post the devastation of the pandemic. The key will be the execution of the plan. The divestment number will need a lot of work. The additional borrowing needs to be managed by RBI proactively to ensure that it does not impact the long-term rates significantly," said Amar Ambani, Senior President and Head of Research – Institutional Equities, YES SECURITIES.

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