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Sensex surges over 700 points to hit 20,000 as rupee rebounds

#The worst is over for the Indian economy

It is a unanimous view that the worst is over and things are looking better. Reforms are back on track. The Prime Minister has made a fervent appeal to the opposition for support and cooperation on all Bills. This will help the Indian economy, and whoever comes to power in the next government will definitely take them forward. The government has started taking decisions and the signals are positive both from the government and RBI. I feel a little elated that the worst is over, the gloom and doom is over.

Reforms which include the clearing of some important bills like the Pension Fund Regulatory and Development Authority (PFRDA) Bill, the Land Acquisition Bill, raising the FDI cap in several sectors and government approving Rs. 1.83 trillion infrastructure projects will definitely boost confidence among the foreign investors to invest more in India.

Well I must say even the worst governments can make some of the wisest decisions at the time prior to their departure....
#Appointing Raghuram Govind Rajan as the new RBI Governor and the recent economic reforms are one of those decisions....
 
Chanakya's_Chant said:
#The worst is over for the Indian economy
Click to expand...

One swallow does not a summer make. Let it sustain for some time to see the effect.

Well I must say even the worst governments can make some of the wisest decisions at the time prior to their departure....
#Appointing Raghuram Govind Rajan as the new RBI Governor and the recent economic reforms are one of those decisions....
Click to expand...

I agree with you completely
 
Soumitra said:
One swallow does not a summer make. Let it sustain for some time to see the effect.
Click to expand...

Well dear I was not talking about this news particularly; There are many more reasons to believe the same, Our economy is currently in a shambles. Several years of misrule and missed opportunities have resulted in slowing growth, a plummeting rupee, increasing indebtedness, and rising inflation and joblessness. It has pushed us Indians into a panic. But, hang on before you buy that one-way ticket. A silver lining is emerging on this very dark cloud. #Be ready to welcome the Monsoons, I guess the most awaited one for MMS, Speaking specifically of cumulonimbus clouds, we have had a very good monsoon season. According to the Indian Meteorological Department (IMD), India has had cumulative seasonal rainfall of 804mm versus a normal of 742mm, resulting in 8% excess rainfall.

I am pretty clear that the red line will not be breached because these costs are all not going to come in this financial year. The fiscal deficit is the no. 1 objective of the Prime Minister and the finance minister. They have made a commitment and they will stick to it. It is not going to balloon because the food security Bill has been passed.

On the revenue side, we have an ambitious target—18% growth in direct tax collection and 20% growth in indirect tax collection. The growth in collection of income tax, which is bulk of the direct tax, was 14-15% in the first quarter. I am reasonably convinced that we will meet the target of income tax collection.

The government is trying various ways to bridge the gap. One of them is raising FCNR-B (foreign currency non-resident-bank) deposits. Borrowing overseas, FII debt, equity and external commercial borrowing (ECB) are some of the ways through which we can contain the current account deficit.

The government has permitted six companies to raise $8 billion. IIFCL (India Infrastructure Finance Co. Ltd) is going to access the market for a dollar billion and half loan. The three oil companies will raise another $4 billion. With their strong balance sheets and backing of the government, there will be no difficulty.

Then, money will come through the foreign direct investment (FDI) route. The Mylan (Inc.) deal will get us $1.6 billion (Mylan is buying a unit of Strides Arcolab) and Jet will get more than half a billion dollars (Ethiad Airways is buying 24% stake in Jet Airways (India) Ltd). The government has liberalized FDI norms and we will get more money.

I see fresh air and little bit of light at the end of the tunnel. The government has started taking decisions and the signals are positive both from the government and RBI. We feel a little elated that the worst is over, the gloom and doom is over.
 
Good..:) Lets hope for the best...:cheers:

BTW, where are those astrologers who predicted the collapse of Indian economy..?:coffee:
 

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