Government must deliver to the raised expectations
The clear majority of the Congress led UPA government has created a stable government for the first time since 1996. The scenario of a government that doesn’t have to worry about appeasing the leftist parties or alliance partners has created a bullish sentiment in the market. In a report the consultancy firm IIFL states that investors would now expect a faster pace of market friendly reforms. Amongst these reforms would be bills like the insurance bill to increase the foreign holidng to 49% and the pension fund bill to set up a pensions regulatory body. IDFC India research added that the government should take advantage of its strong position and go ahead with its disinvestment programm.
The clear majority of the Congress led UPA government has created a stable government for the first time since 1996. The scenario of a government that doesn’t have to worry about appeasing the leftist parties or alliance partners has created a bullish sentiment in the market. In a report the consultancy firm IIFL states that investors would now expect a faster pace of market friendly reforms. Amongst these reforms would be bills like the insurance bill to increase the foreign holidng to 49% and the pension fund bill to set up a pensions regulatory body. IDFC India research added that the government should take advantage of its strong position and go ahead with its disinvestment programm.
