Indian Markets Uncertain as Budget Fails to Cheer Up Investors
Investors weren’t expecting too much from the Union Budget but the Finance Minister has failed to offer anything concrete or exciting. Indian economy will remain strong in long term but investing community always looks forward to strong reforms from government. The recently presented Union Budget hasn’t provided for any concrete steps. Many market analysts have criticized it as a political speech rather than an account of spending and earnings of the government.
Prime Minister Modi came back with a strong mandate and market players were expecting a reform-led budget. However, as the reforms have been put on the backburner, it seems that markets will find their direction with other triggers in near future.
Finance Minister also announced that the aim of the government is take Indian economy of USD 5 trillion by the end of current mandate for Prime Minister Modi. However, the finance minister hasn’t offered any roadmap for taking to economy to those levels. So, it is just like many of the election time promises that political leaders make. We will see what happens on the ground as the economy improves.
However, economists have commented that Indian GDP has to grow much higher than 8% in order to achieve the ambitious goal of USD 5 trillion.