Finance Minister Nirmala Sitharaman's fourth tranche of stimulus emphasised on wide-ranging structural reforms across eight sectors — coal, minerals, defence production, power distribution companies, airspace
management, space, social infrastructure projects and atomic energy.
After announcing measures aimed at resurrecting MSMEs, rural economy and agriculture sector battered by the COVID-19 outbreak, FM Nirmala Sitharaman on May 16 unveiled the fourth tranche of the stimulus package
designed to help achieve the goal of Atmanirbhar Bharat.
The structural reforms announced by the FM were hailed by experts and they said that the reforms are the long-term positives.
"FM's structural reforms take the policy of going 'vocal about local' forward. Indigenisation of imported spares, corporatisation of Ordnance Factory Board and listing in the stock exchange are indeed bold
structural reform measures" said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"Raising the FDI limit in defence manufacturing will help in technology transfer and will be a major boost for domestic manufacturing. Auctioning of six more airports and privatisation of Discoms in UTs are welcome. In brief, liberalisation in fast forward mode."
Dhiraj Relli, MD & CEO, HDFC Securities also believes the fourth part of the stimulus announcement highlighted new horizons of growth.
"The announcement covered a wide spectrum of areas. These are spread over multiple years and hence their immediate impact may be limited. Fiscal impact also seems very small for the current fiscal. A lot of these measures need not have waited for COVID-19," Relli said.
"Measures related to power generation and distribution and mining are welcome as they can make an impact fast if states get on board soon leaving aside their political compulsions. Measures on defence and space will lead to an uptick in stock prices of some companies for a few days but here again, one will have to watch as to how fast intent is converted into execution," said Relli.
18/05/20 Nishant Kumar/moneycontrol.com
To Read the News in full at Source, Click the Headline
management, space, social infrastructure projects and atomic energy.
After announcing measures aimed at resurrecting MSMEs, rural economy and agriculture sector battered by the COVID-19 outbreak, FM Nirmala Sitharaman on May 16 unveiled the fourth tranche of the stimulus package
designed to help achieve the goal of Atmanirbhar Bharat.
The structural reforms announced by the FM were hailed by experts and they said that the reforms are the long-term positives.
"FM's structural reforms take the policy of going 'vocal about local' forward. Indigenisation of imported spares, corporatisation of Ordnance Factory Board and listing in the stock exchange are indeed bold
structural reform measures" said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"Raising the FDI limit in defence manufacturing will help in technology transfer and will be a major boost for domestic manufacturing. Auctioning of six more airports and privatisation of Discoms in UTs are welcome. In brief, liberalisation in fast forward mode."
Dhiraj Relli, MD & CEO, HDFC Securities also believes the fourth part of the stimulus announcement highlighted new horizons of growth.
"The announcement covered a wide spectrum of areas. These are spread over multiple years and hence their immediate impact may be limited. Fiscal impact also seems very small for the current fiscal. A lot of these measures need not have waited for COVID-19," Relli said.
"Measures related to power generation and distribution and mining are welcome as they can make an impact fast if states get on board soon leaving aside their political compulsions. Measures on defence and space will lead to an uptick in stock prices of some companies for a few days but here again, one will have to watch as to how fast intent is converted into execution," said Relli.
18/05/20 Nishant Kumar/moneycontrol.com
0 comments:
Post a Comment