Change at India’s finance ministry spurs hope, says analyst

The changing of the guard has raised expectations of fast-tracking stalled policy reforms, says BBVA Research.

Here’s more from BBVA Research:

Following the nomination of India's previous finance minister for President, India’s Prime Minister Dr. Manmohan Singh was announced as the new head of the Finance Ministry on Tuesday, a changing of the guard which has raised expectations of fast-tracking stalled policy reforms.

The outgoing finance minister left on a positive note, clearing FDI proposals worth more than Rs 20bn on Monday.

In another positive development, New Delhi reported a 26% hike in its electricity tariff, a move that may add to inflation in the near term but over the medium-term will alleviate pressures on the loss-making state electricity board.

Other states are expected to follow New Delhi’s decision by announcing similar electricity hikes.