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India stands out among other BRIC nations: Mark Mobius

The Economic Times:  March 04, 2015

New Delhi: Stating that India stands out among other BRIC nations, Mark Mobius of Templeton Emerging Markets Group told ET Now, "The government's announcement on 9% reduction in subsidies is a good move."

According to Mobius, the reduction in corporate tax should up capital spending in the private sector. "Announcement on increase of capital spending is a positive," Mobius added.

Analysts gave finance minister Arun Jaitley's budget an 8.2 out of 10, calling it balanced, progressive and innovative. They said Jaitley's financial draft for India set the pace for addressing several long-pending issues.

Experts felt the cut in corporate taxes, GAAR delay of 2 years, crackdown on illegal money, dropping of wealth tax will auger well for the markets.

The Budget has received a mixed response from global rating agencies with the US-based S&P saying that the annual financial document seeks to keep the fiscal deficit in check despite subdued revenue growth.

"India's 2015-16 Budget highlights the government's commitment to keep the fiscal deficit low despite lower-than-expected revenue growth," Standard & Poor's said.

Another rating agency Moody's said the Budget has prioritised growth over fiscal consolidation but it may not have any impact on the country's sovereign rating.

Fitch, however, said that the Budget has both positive and negative elements and that India's medium-term fiscal consolidation strategy is less inspiring.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

x IBEF : India Brand Equity Foundation