It carries forward the government's recent initiatives to crack down on the parallel economy , promote digital banking channels and disincentivise cash usage. Foreign direct investment norms are sought to be relaxed.A mild fiscal stimulus has been provided, but the focus remains on boosting public investments and keeping expenditure in check, rather than handouts. The government's targeted capital spending is up about 14% and should provide a much-needed boost to the investment cycle against the backdrop of weak private sector sentiment. The global growth environment for calendar year 2017 appears to be meaningfully better than in 2016. The external environment also needs to be watched, particularly given the signals of increased protectionism in the US.

Source: Economic Times February 02, 2017 03:45 UTC