Key Points
Sahil Kapoor, Head of Products & Market Strategist, DSP Mutual Fund, says there will be a slowdown in terms of last two-three years capex expenditure, that is the incremental increase but the overall number is going to be closer to that number..
However much we may say that budget barely matters for the market, it is a platform where the commentary coming from the Finance Minister would have reflection on the market and important data points relating to the economy etc..
Sahil Kapoor: It is a vote on account, so I do not think there will be any drastic changes done, but two numbers I will highlight which are important, first is the overall expenditure, I think that is going to be an important message, how far and strongly is going to, government is going to go on the path of fiscal consolidation is something that the state would want to know, although the annual fiscal deficit number is anybody's guess right, but the glide path is very important...
Second, of course, the government has to focus on employment situation that I think it has been a big focus over the last five to seven years, largely that has to translate into numbers going ahead so there has been a focus over the last three to four years specifically on manufacturing that I think in some areas has started to build up in terms of numbers..
The third and most important area is law and order in terms of the industrial complex, that has been a big challenge for India for a very long period of time, setting up shop in India for international businesses, domestic businesses and having a conducive environment to run those businesses I think that is changing over the last many years, more work is required and I think that will be an area where probably government will focus on.. (You can now subscribe to our ETMarkets WhatsApp channel)..
