Barely 48-hours after taking over the Finance portfolio, Manmohan Singh has begun with a bang.
Things have started moving beginning with the ambiguous GAAR issue, which has acted as a wet blanket on foreign investment. The government has clarified that P-notes would not come under the ambit of the General Anti Avoidance Rules (GAAR) as proposed by Pranab da. This has already set the equity markets on fire.
FIIs who have invested in Indian equities through P-Notes may now not have to worry over the fact that their investment would be taxed.
The government has also initiated measures to ensure that SEBI takes a look at the entry entry load being charged by mutual fund distributors. This is likely to ensure lower costs for investors and would help improve sentiments for those investing in mutual funds.
Manmohan Singh and his government have also reduced the price of petrol, which would help reduce inflation and hence interest rates.
The Sensex is up more than 2%, fuelled by the prospects of renewed reforms and also due to a positive outcome of the two day Euro meet. Manmohan Singh has already met key Finance Ministry officials to push through key decisions and take stock of the weak economic fundamentals.
Economists and analysts are optimistic that Manmohan Singh would also push the reforms agenda, particularly GST, DTC, FDI in multi brand retail and the Pension Reforms Bill. Pranab's departure seems to have set the government on fire.