Dear All,
President’s Speech on
agenda for new government is definitely a reason for increased business and
consumer confidence
President Pranab Mukherjees
speech revolved aroung PM’s desire for four “color revolutions” based on the
hues of the Indian flag.
Ø Saffron :
Energy- India is blessed with enormous
amount of sunlight and, therefore, it made sense for the country to develop
solar energy.
Ø White:
Dairy- that addresses India’s extremely
low dairy productivity.
Ø Green: Agriculture: Increasing pulses
production and the protein content of pulses and second green revolution will
be adding value to farm produce and reducing the 30% waste in agriculture.
Ø Blue: Water:
Fisheries production to the point where India
could export fish to the world and water management that would ensure “more
crop for the drop”.
Some of the Key
Highlights of the speech
a)
Poverty:
·
Provide basic
necessities of life on urgent basis.
·
Poverty
elimination via development.
b)
Inflation:
·
Improving supply
side issues of agro and agro based products.
·
PDS systems
undergo change and will be incorporating best practices from states (eg:
Chhattisgarh).
·
Effective
steps to prevent hoarding and black marketing .
·
Contingency
plans being prepared for below average monsoons.
c)
Agriculture:
·
Increase
investments in agriculture (public & private).
·
Measures will be
taken to convert farming into a profitable venture through scientific practices
and agro-technology.
·
Productivity of
Animal Husbandry will be increased Food processing industries will be
incentivized.
·
Adopting a
National Land Use Policy which will facilitate scientific identification of
non-cultivable land and its strategic development
d)
Infrastructure
:
·
Investment
friendly and predictable PPP mechanism will be put in place.
·
Modernization
and revamping of Railways is on top of the infrastructure agenda.
·
Government will launch a Diamond Quadrilateral project of high speed
trains.
·
Network
of freight corridors with specialized Agri-Rail networks for perishable
agricultural products.
·
100 Cities will
be built and focus will be on specialized domains and equipped with world class
amenities.
·
Integrated
infrastructure will be rolled out in model towns to focus on cleanliness
and sanitation.
e)
Energy:
·
A Comprehensive
National Energy Policy will put in place.
·
Coal sector will
be opened up for private sector investments.
·
Substantially
augment electricity generation capacity through judicious mix of conventional
and non-conventional sources
·
Expand the
national solar mission and connect households and industries with gas-grids
f)
Taxation:
·
Rationalization
and simplification of the tax regime to make it non-adversarial and conducive
to investment, enterprise and growth.
·
Introduce the GST
while addressing the concerns of States.
The address was
comprehensive touching on all aspects of economy including Tourism and
Education. More important is that the reform measures would not only be legislative
but also executive thereby helping speed up growth. FIIs have been bullish on
India which is reflected in increased inflows. While the exact roadmap for
reforms and policy initiatives would be known post budget, today’s Correction
gives excellent buy opportunity.
BUY: L&T, Maruti Suzuki, RIL, Adani Port, Jain DVR, Heidelberg Cement,
NHPC, IVRCL, Tata Power, Supreme Indus
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