 "Lack of detail, vision: Saurabh Mukherjea")
It is encouraging to see the FM sticking to his predecessor's FY15 fiscal deficit target of 4.1%. But it is not clear how this target will be reached due to the higher outlay, without any significant increase in revenues . Our math suggests an overshoot of 0.3% points.
Also, while the FM acknowledged the need for recapitalising PSU banks, his speech did not provide any specifics on where the around $50billion for such a recap would be procured. It is good to see FDI limits in the defence and Insurance sectors being hiked to 49%. The insurance FDI, in particular, is bound to be accompanied by multi-billion dollar inflows into the country over the next couple of years
Also, while the FM acknowledged the need for recapitalising PSU banks, his speech did not provide any specifics on where the around $50billion for such a recap would be procured. It is good to see FDI limits in the defence and Insurance sectors being hiked to 49%. The insurance FDI, in particular, is bound to be accompanied by multi-billion dollar inflows into the country over the next couple of years
Saurabh Mukherjea
CEO, Institutional Equities, Ambit Capital
CEO, Institutional Equities, Ambit Capital