India budget

06 Jul

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.


  • FBT out – Improves sepending
  • Cheaper loans to farmers – good


  • 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.

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