A roadmap for partial diesel decontrol, allowing foreign supermarket chains to set up shop in India, and shoring up the value of rupee. These are some of the reforms that the market expects the outgoing Finance Minister, Mr Pranab Mukherjee, to announce on Monday — two days before he demits office.
Foreign remittances
The measures which Pranabda (as the Finance Minister is known) said could improve market conditions are largely likely to be those that encourage further flow of foreign currency into India.
The Reserve Bank of India, which has not been playing ball with the North Block at all times, is also expected to chip in with steps that could boost the sagging sentiments in the forex markets.
Speculation doing the rounds in the Capital on Sunday is that the central bank could further liberalise external commercial borrowing norms or even go to the extent of announcing norms for new bank licences to corporate houses.
The Finance Ministry is also likely to announce on Monday the rules regarding the way the general anti-avoidance rules (GAAR) will be implemented from April 1, 2013. The norms are likely to have a positive effect on foreign investors.
Another item that is top on the wish-list of India Inc. is that the Government would take some remedial steps to undo the negative effect of the retrospective amendments to the income-tax law.
There is some speculation that the Government could take the ordinance route to negate the latest amendments, given the recent outcry from the international community against retroactive legislation.
So whether Pranbda will buckle under pressure and come to the rescue of corporate biggies like Vodafone only time will tell.
Just another 48 hours to go before he can shake the ruling coalition out of its current paralysis.
krsrivats@thehindu.co.in