Published On : Sat, Feb 28th, 2015

Share markets soar on renewed hopes for a resurgent India

PM Modi

Stock markets that had gotten begun the day on a  high, with the Sensex dipping briefly, soared again on Jaitley’s budget announcements.  Analysts said a delay in achieving the fiscal roadmap and a higher allocation for social schemes may have dented sentiments earlier.

“The Credibility of Indian economy has been re-established. The world is predicting it is India’s time to fly,” the Finance Minister said as he began his speech, asserting, “We have turned around the economy.”

A day after Prime Minister Narendra Modi assessed the MNREGA rural employment scheme as “living proof of the Congress party’s failure”, the welfare reform has been boosted by a whopping Rs. 5,000 crore.

The additional funding makes this the largest-ever allocation for the scheme that was hailed as a landmark reform by the Congress-led government that was wiped out in last year’s national election by the Prime Minister  and the BJP.

Yesterday,  while speaking in Parliament, Modi had pledged, “I will ensure MNREGA is never discontinued. It is proof of the Congress’ failure. After so many years of being in power, all you were able to deliver is for a poor man to dig ditches a few days a month.”

Mr Modi said he will ensure that the scheme is fortified but said it will remind voters of how the party that has governed the country the longest failed them. “You will give me credit for this at least – that I have some rajnaitik sudhbudh (political acumen). This is why MNREGA will stay,” the premier said in Parliament, provoking laughter and applause from his party’s lawmakers.

While beginning the budget speech Jaitley quoted an Urdu couplet –

“Kuch to gul khilaye hain, kuch abhi khilane hain, par baagh mein ab bhi kaante kuchh puraney hain,” (We have made some progress and are working towards achieving more goals, but there are some hindrances in the way), Mr Jaitley said, referring to the policies of the Congress-led coalition government that was voted out last year.

Reactions from some people –

Harish Salve – Supreme Court Lawyer from Nagpur –
Real estate is the repository of maximum black money. Hopefully property prices will rationalise. Lutyens delhi -will it become affordable?

If the benami property law is rigorous a lot of people in public life and civil servants may also find themselves impoverished.

Meera Sanyal – Banker and AAP leader -Monetisation of Gold : Excellent idea to have interest bearing gold deposits to bring gold from under the pillow into economy.

Sensex remained volatile, rising and falling throughout the budget speech. But in the end
The Sensex slips into the red, down 142 points to 29,078 and Nifty dips 31 points to 8,814.
At 12. 35 when FM ends budget speech. Sensex up 101 points at 29,321, Nifty at 8,870, up 25 points.