Setting stage for $5 trillion economy
Friday - July 5, 2019 10:28 pm ,
Category : BUSINESS
The first Budget of NDA 2.0 has clearly demonstrated the intent towards the ambitious target of becoming a $5 trillion economy, with some concrete and decisive proposals.
The fiscal mathematics looks realistic and the adherence to fiscal discipline with boost to growth from simultaneous provision of liquidity by the Reserve Bank of India should help attract international investments into India. Sustained credit flow is a key trigger for this journey and it is heartening that the Finance Minister has acknowledged the role of sound NBFCs for the same, and addressed sectoral concerns to a certain extent. The credit risk for NBFCs may go down substantially with the proposal of one time partial credit guarantee. This will go a long way in shrinking the trust deficit of investors in the segment. Over the medium term, this should also help in reviving growth in the broader economy. (The writer is Managing Director, JM Financial Group. The views expressed are personal)
--IANS arm/
The fiscal mathematics looks realistic and the adherence to fiscal discipline with boost to growth from simultaneous provision of liquidity by the Reserve Bank of India should help attract international investments into India. Sustained credit flow is a key trigger for this journey and it is heartening that the Finance Minister has acknowledged the role of sound NBFCs for the same, and addressed sectoral concerns to a certain extent. The credit risk for NBFCs may go down substantially with the proposal of one time partial credit guarantee. This will go a long way in shrinking the trust deficit of investors in the segment. Over the medium term, this should also help in reviving growth in the broader economy. (The writer is Managing Director, JM Financial Group. The views expressed are personal)
--IANS arm/
