Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Focus areas for the new government
Thu, 15 May Pre-Open

The general elections are over and if opinion polls are anything to go by, the country will have a stable government. This would be good news, as a clear majority would enable it to take the tough decisions needed to revive the economy quickly. Indeed the new government will have to hit the ground running as it were. It will have about a year to implement its agenda before its honeymoon period ends. So what should the key areas be that the next government should focus on?

As per the deputy chairman of the planning commission Montek Singh Ahluwalia, it should not be too difficult for the next government to get the GDP growth rate back up to 7-7.5%. This will be possible if it were to focus on reducing the fiscal deficit, improving the total investment to GDP ratio and rapidly rolling out the Goods and Services Tax (GST). These measures are crucial to improving the fundamentals of the economy as well as boosting investor sentiment.

It is true that a broad consensus has developed among political parties on these issues. Every party realizes that to overcome the economic slump that the country finds itself in, some hard choices will have to be made. For example, every party would like to win over the youth vote but this will be impossible without creating employment. But creating employment will mean that corporate investment will have to be brought back. This will be easier said than done. The new government will have no choice but to focus on several measures at the same time to boost growth. Merely focusing on a few measures will not be enough.

To conclude, we do not believe that it will be as easy as it is being made out to be, for the next government. It will have its task cut out from day one. Getting back to 7-7.5% GDP growth will require significant reforms, a reduction in the deficit as well as removing the bureaucratic hurdles that have impeded the economy over the last few years. It could be a while before GDP growth returns to levels above 7%.

Do you think the next government can boost economic growth quickly? Share your views on the Equitymaster Club.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Focus areas for the new government". Click here!

  

Views on News

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

Gold could Hit 40,000 Sooner Than Expected (Profit Hunter)

Aug 16, 2019

Domestic gold prices are firing on both engines now. Gold prices could touch 40,000 faster than you could imagine.

More Views on News

Most Popular

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

The 'Seedhi Baat, No Bakwaas' View on ITC (Profit Hunter)

Oct 12, 2020

Is ITC an investment or a speculation at current levels?

One of the Best Investment Opportunities in the Market Right Now (Fast Profits Daily)

Oct 16, 2020

The one sector that you should be looking at to make good profits.

The Inflection Point for Defence Stocks is Getting Closer (Profit Hunter)

Oct 9, 2020

Few Indian defence companies could use their engineering capabilities to eventually become global leaders.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS