Steps to boost investor confidence: Ved Prakash Chaturvedi
Business Standard — March 01, 2005

The steps taken to create long-term business confidence are important.

In many ways domestic investors are just taking to equities and a careful nurturing of this positive sentiment with sound long-term fundamental policies has been the focus of this Budget. No talk of divestment is a surprise but reflects the fact that many macro-reforms are now implemented outside the Budget.

From a micro perspective, companies in the infrastructure, oil and gas, textiles, banking sectors and those paying high tax will be direct beneficiaries. Steps taken to simplify taxation structures and benefits given in the area of personal taxation will put greater investible surplus in the hands of individuals. All these will be immediate positives for our equity markets.

While much has been achieved, much remains to be achieved and areas like fiscal consolidation, enhanced efficiency in delivering targeted subsidies, revamping the state level finances and enhancing PSU competitiveness will have to wait for another day.