*Improved CAD is the only silver lining
It may mean that measures imposed earlier to rein in gold imports may be relaxed.
*Fiscal deficit is a major challenge
Keeping it to 4.5 per cent of the GDP for FY14 and 3.1 per cent for FY15 will be difficult
*Rate of inflation is beyond acceptable limit, uncertain monsoon, Iraq crisis big
Measures to address the supply-side issues to bring down food inflation.
*Lack of stable tax regime dissuades investors
Retrospective amendments may be done away with while clarity is likely to be brought on indirect transfers.
*Country needs to make conscious choices through informed debates
This is an indication that the rail fare hikes may stay put.
*Choice has to be made between fiscal prudence and mindless spending and populism
Sops like debt waiver are unlikely, subsidies to go down.
*Mindless populism burdens exchequer, leads to high taxes
*Doors will be open for sectors which need investment, provide employment
FDI in sectors like defence and e-commerce may be allowed soon
*To retain investors, government has to be supportive, taxation has to be reasonable
*Willing to look at certain recent legislation but business has to realise that free trade means fair trade New Companies Act may be amended to address investor concerns