UPA wakes up from slumber; unveils series of reforms

Business

oi-Sunil

By Sunil

Published: Saturday, September 15, 2012, 9:26 [IST]

The UPA has finally woken up from deep slumber, with a spring in its step, unveiling bold reforms, despite threats from allies and the opposition.

Close on the heels of a diesel hike and a LPG cap on Thursday, the government has approved 51% FDI in multi-brand retail and has also allowed foreign airlines to invest in Indian carriers, raised foreign investment limits in broadcasting services and power exchanges,

The government has also approved plans to sell stakes in four state-owned companies to mop up Rs 15,000 crores.

Stock markets have already cheered the government's diesel hike decision, with the S&P CNX Nifty jumping more than 2.6% on Friday.

Stocks that are into retailing, particularly shares of Pantaloon, as also airline companies like Spice and Kingfisher are likely to react positively to FDI, as there could be a fresh infusion of capital. The government has said that as much as 10 million jobs could be created by allowing FDI in multi-brand retail.

With the FDI in multi-brand retail likely to go ahead, Mamata Banerjee has already given the government 72-hours to reverse the decision or face the consequences.

All eyes are now likely to be on RBI Governor Subbarao, at Monday's meeting of the Monetary Policy Review, to see if the governor cuts repo rates.

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