Finance Minister Pranab Mukherjee has done the right thing by getting banks to agree to cut interest rates and to announce that his next stimulus package will be a ‘reforms stimulus’. There can be little doubt that the government is on a strong-footing right now, with inflation down and the industrial slowdown beginning to ease. The Bharti-MTN deal shows Indian companies that are efficient have no fears about raising funds. Many others have already raised funds in recent weeks.
If the government is able to push one or two more sets of policies — some disinvestment, perhaps some road contracts or even the 3G auctions — this will create a lot of excitement in the market and will keep the Sensex up.
Srinjoy Gupta, New Delhi
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