New Indian Goverment Announces Economic Reforms

India’s new government has unveiled a programme for rapid economic reforms aimed at creating jobs and boosting foreign investment.

The announcement by President Pranab Mukherjee included plans designed to simplify taxation and reduce inflation.

Industrial reforms included attracting private investment to the coal and defence sectors.

He also spoke of India’s hopes for good relations with neighbours and pledged to tackle violence against women.

The President’s parliamentary address was made to lawmakers elected in Prime Minister Narendra Modi’s landslide victory last month.

Mr Mukherjee said that the government would introduce a general sales tax, encourage foreign investment and speed up approvals for major business projects. It would also tackle bottlenecks that make India’s food inflation the highest among major economies.

The anti-inflationary message will be welcomed by central bank governor Raghuram Rajan, who has made lowering India’s growth-stifling high interest rates contingent on containing consumer prices.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza