Sushil and Aware strike gold, Babita settles for silver

Feb 2: Prime Minister Narendra Modi’s second budget in seven months disappointed investors who were hoping for big-bang stimulus to revive growth in Asia’s third-largest economy.

The fiscal plan -- delivered by Finance Minister Nirmala Sitharaman on Saturday -- proposed tax cuts for individuals and wider deficit targets but failed to provide specific steps to fix a struggling financial sector, improve infrastructure and create jobs. Stocks slumped as a proposal to scrap the dividend distribution tax for companies failed to impress investors.

"Far from being a game changer, the budget provides little in terms of short-term growth stimulus,” said Priyanka Kishore, head of India and South East Asia economics at Oxford Economics Ltd. in Singapore. “While income tax cuts will provide some relief on the consumption front, the multiplier effect is low and the overall stance of the budget is not expansionary."

India has gone from being the world’s fastest-growing major economy three years ago, expanding at 8%, to posting its weakest performance in more than a decade this fiscal year, estimated at 5%.

While the government has taken a number of steps in recent months to spur growth, they’ve fallen short of spurring demand in the consumption-driven economy. Saturday’s budget just added to the glum sentiment.

Okay Budget

“It’s an okay budget but not firing on all cylinders that the market was hoping for,” said Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies in Mumbai.

The government had limited scope for a large stimulus given a huge shortfall in revenues in the current year. The slippage induced Sitharaman to invoke a never-used provision in fiscal laws, allowing the government to exceed the budget gap by 0.5 percentage points. The result: the deficit for the year ending March was widened to 3.8% of gross domestic product from a planned 3.3%.

On Friday, India’s chief economic adviser Krishnamurthy Subramanian said reviving economic growth was an “urgent priority” and deficit goals could be relaxed to achieve that. The adviser’s Economic Survey estimated growth will rebound to 6%-6.5% in the year starting April.

The fiscal gap will narrow to 3.5% next year, as the government budgeted for gross market borrowing to rise marginally to 7.8 trillion rupees from 7.1 trillion rupees in the current year. A plan to earn 2.1 trillion rupees by selling state-owned assets in the year starting April will also help plug the deficit.

Total spending in the coming fiscal year will increase to 30.4 trillion rupees, representing a 13% increase from the current year’s budget, according to latest data.

Key highlights from the budget:

* Tax on annual income up to 1.25 million rupees pared, with riders

* Dividend distribution tax to be levied on investors, instead of companies

* Farm sector budget raised 28%, transport infrastructure gets 7% more

* Spending on education raised 5%

* Fertilizer subsidy cut 10%

Analysts said the muted spending plan to keep the deficit in check will lead to more downside risks to growth in the coming months.

“It is very doubtful that the increase in expenditure will push demand much,” Chakravarthy Rangarajan, former governor at the Reserve Bank of India told BloombergQuint, adding that achieving next year’s budget deficit goal of 3.5% of GDP was doubtful.

With the government sticking to a conservative fiscal path, the focus will now turn to central bank, which is set to review monetary policy on Feb. 6. Given inflation has surged to a five-year high of 7.35%, the RBI is unlikely to lower interest rates.

What Bloomberg’s Economists Say:

The burden of recovery now falls solely on the Reserve Bank of India. With inflation breaching RBI’s target at present, any rate cuts by the central bank are likely to be delayed and contingent upon inflation falling below the upper end of its 2%-6% target range.

-- Abhishek Gupta, India economist

Governor Shaktikanta Das may instead focus on unconventional policy tools such as the Federal Reserve-style Operation Twist -- buying long-end debt while selling short-tenor bonds -- to keep borrowing costs down.

New Delhi, May 6: He has flattered to deceive on umpteen occasions but highly-rated wicketkeeper-batsman Sanju Samson says he has learnt to accept his failures in pursuit of the calm demeanour that former India captain Mahendra Singh Dhoni possesses.

The 25-year-old from Kerala has always been talked about by the likes of Rahul Dravid and Gautam Gambhir but it hasn't translated into international success with only four T20 Internationals in his kitty in the last five years.

"I have learnt to understand and focus more on my strengths and (be more) accepting (of) the failures. I try to contribute to the team's cause and try to take the team over the line. I am learning to focus and control my emotions while batting like MS Dhoni," Samson said during a podcast organised by Rajasthan Royals.

He recently made a comeback in India's T20 side and it was a worthy experience for him.

"It was great to be a part of the Indian team again. To be a part of one of the best teams in the world, surrounded by players like Virat bhai and Rohit bhai, it was a fantastic experience," Samson said.

In one of the games in New Zealand, Samson was sent to bat in the Super Over, something which made him feel wanted in the Indian set-up.

"It was a great feeling to be trusted by the players such as Virat bhai and Rohit bhai to go out there and bat in the crucial moments. It's a great feeling when the team and the players consider you to be a match winner."

On a lighter note, Samson revealed that he refers to Steve Smith as "chachu" (uncle) after Brad Hodge once started calling him by that name.

"I share a very good relationship with 'Chachu' Steve Smith. He is one of the best brains in world cricket and we all enjoy a lot playing under him."

Asked what's the back story of the nickname, Samson said: "It started with Brad Hodge, he used to call Smith 'Chachu', then when Hodgy left, I started calling Smith 'Chachu'. In return Smith also started calling me 'Chachu'. We both really enjoy and continue calling each other that."

While Dhoni is his idol, he also loves watching Jos Buttler in Royals and makes notes on how the star Englishman prepares for games.

"I observe Jos especially given he too is a wicketkeeper-batsman. He's always working on his skills and his game and never sits idle.

"He's either working on his keeping, batting in the nets or running around the park. I love to observe and know how he thinks and prepares as a keeper before a game.