Credit Suisse: Investment cycle revival at least 3-4 yrs away
Thus, while NIB will add certainty to projects, it will not drastically speed up the pace of implementation as other impeding factors will continue to prevail.
To analyse the impact of the past two decades of reforms and their economic impacts, the brokerage has looked at all the major reform measures since 1991 and also the past 22 Budget speeches.
"We have re-discovered how dramatically the economy has changed--de-licensing and de-reservation; import duties cut from 78 per cent to 7 per cent; NPAs down from 26 per cent in 1992 to 2.5 per cent as of FY12; import licences and dual exchange rates to open current account," says the report.
Accordingly, since the 1991 reforms, GDP growth accelerated from an average of 5.6 per cent in the 1980s to 6 per cent in the 1990s and then 8 per cent in the 2000s.
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