India’s budget today is not as good as expected. May be the stock market over-reacted by shedding 870 points, close to 6 percent, but the rationale is very understandable. Here is what I feel about the budget.
Good:
- FBT out – Improves sepending
- Cheaper loans to farmers – good
Bad:
- Incentives for export – may not have desired impact in troubled times
- Income tax limit increase – too low
Not sure:
- Govt’s willingness to consider alternative currencies (to Dolla
It is interesting to see the way banking shares tumbled closer to 7.5 percent.