,
7 tweets,
3 min read
Read on Twitter
Yesterday @narendramodi’s approach at the Bloomberg New York summit indicates that a lot of things are in the offing at @PMOIndia . Maybe listing in the Bloomberg Barclays global aggregate bond index. Personal Income Tax; DDT; LTCG; large scale PSU privatisation. @nsitharaman
Need an all round approach to reach a 5 Trillion USD economy by 2025. If we get there people might forget what Manmohan Singh did in 1991. But all these measures can work together in cohesion only. For instance, we need privatisation to take care of the Fiscal deficit.....
We needed corporate tax cut for capital expenditure and also to improve India’s competitive ability globally. We need personal income tax cuts to increase domestic demand. We need DDT & LTCG to attract foreign capital - also get a better rate for PSUs on privatisation.
But why do we need the budget for all these measures. The country shouldn’t lose 4 months just to follow the protocol?
We need our debt to be included in the global bond index to attract foreign debt; we need domestic interest rates to collapse. Once our debt is included in a global index it will work like magic on banks/ financial services - interest rates will drop in percentages not bps !
It will release controls over foreign ownerships across segments. And we need huge investments in the infrastructure space plus we need our debt markets to develop across board. And what better time to attract the 17 trillion USD floating on negative rates across geographies?
People who have interest in economic history will know that the US rail road infrastructure of the 19th century was created out of the European debt capital. USA needed capital and Europe was sitting on surplus. I hope @narendramodi and @PMOIndia can do the same. @nsitharaman
