Reversing the slowdown will call for investment-incentivising policies for large as well as small businesses. Also, the government must think of ways to prune costs of doing businesses and create a transparent and stable tax and regulatory environment. According to the Survey, India's external sector in this and coming year looks bright with world trade projected to grow at 4.2% and 4% in 2017 and 2018, respectively, from 2.4% in 2016. First, higher market borrowings by states does not reflect higher deficits — about Rs 50,000 crore of market borrowing is due to changes in the composition of financing. Another factor contributing to the rise in bond yields has been stepped-up Open Market Operations (OMO) by RBI

Source: Economic Times January 29, 2018 19:30 UTC