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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence POLITICAL ECONOMY | PART 1: THE TELECOM TEST The Sangh’s Costliest Blunder: Keeping Narendra Modi in the Chair After Demonetisation and a Trail of U-Turns Two private giants, one state-propped survivor, roughly ₹3.22 lakh crore in announced BSNL revival and support packages (spectrum allocation included), and ₹1.41 lakh crore of AGR dues still on the books: telecom shows what happens when one man’s brand becomes the party’s only policy. This is an argument against Narendra Modi, not against the BJP. SYNOPSIS India’s telecom market has narrowed from a messy but real plurality into two dominant private networks, one weak private survivor kept alive by government equity, and a public operator that has needed about ₹3.22 lakh crore in announced support packages and spectrum allocations, not all of it cash. The 2010 spectrum auctions that started the debt spiral were a UPA-era event, and we say so plainly. But a ...
Worst over for Indian economy: Dr.Pranab Mukherjee
Sanguine Media Services Ltd, XL Telecom and Energy Ltd, Moser Baer Ltd, etc, did well taking cues from the Budget proposals.
India began to rollback tax cuts Friday as the government's new budget pledged to trim the swollen fiscal deficit while maintaining spending on social programs and infrastructure.
Presenting the budget for the fiscal year ending March 2011 to a belligerent Parliament, Finance Minister Pranab Mukherjee said India's fiscal deficit, now 6.5 percent of gross domestic product, would shrink to 5.5 percent of GDP, before falling to 4.1 percent of GDP by 2013.
As expected, he also hiked excise taxes by an average of 2 percentage points. The government had cut those taxes by 6 percentage points in the wake of the financial crisis to stimulate spending.
His pledge to reinstate duties on petroleum products and raise exise taxes on petroleum and diesel to 1 rupee a liter brought angry parliamentarians to their feet, shouting and raising their arms in protest.
"Give me attention," Mukherjee shouted back. "Please do not prevent the presentation of the budget."
Higher taxes threaten to hit consumers as inflation is rising. Policy makers worry that double-digit food inflation is beginning to spill over into nonfood sectors.
Mukherjee said the government's top priority is to "quickly revert to high growth of 9 percent, and then find the means to cross the double digit growth barrier."
India's economy has bounced back from the global downturn faster than many expected, helped by thundering growth in manufacturing.
The government said Friday that India's economic growth slowed to 6 percent in the October-December quarter, compared to 7.9 per cent in the previous quarter, largely due to a decline in farm output and some service sectors. The slowdown was largely expected, as a drought hit agricultural output and rural spending.
Mukherjee said India is on track to grow 7.2 percent for the fiscal year ending March 2010. He expects Asia's third-largest economy to grow 8.5 percent next fiscal year, before hitting 9 percent growth in 2011-12.
"We have weathered this crisis well. Our economy is in a far better position than it was a year ago," he told Parliament.
Investors seemed pleased, sending the benchmark Sensex index up 1.9 percent, to 16,564.98 points in midday trade.

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