Marginal revolutions from Budget 20164 min read 29 Feb 2016, 08:37 PM IST
There are numerous small announcements in finance minister Arun Jaitley's budget that must be lauded
Most television channels track the stock market as the finance minister’s budget speech unfolds in Parliament. This is done to capture the announcement effects from the speech. Yet, it also reflects the gross mistake experts make in believing the Sensex to be reflective of the Indian economy. There is fundamental distinction between the economy, the financial markets and the Sensex. The movement of the stock market captures a very small subset of the Indian financial markets and an even smaller subset of the Indian economy. So first, it is important to correct the context within which the Union budget of the government of India must be analysed. The yo-yo in the markets today, is hopefully, better appreciated now as just that—yo-yo in the market.