India, Aug. 31 -- The recent GOI package is a good start. The withdrawal of the bad taxes on capital gains and start-up funding and attempts to encourage more retail credit flows and energize aggregate demand, should impact economic sentiments. Front-loading bank recapitalisation as well as the promised quick disbursal of tax refunds and vendor payments to the private sector, and FM's repeated emphases on saner tax administration, should impact credit flow, sentiments and, therefore, activity in the economic production side.
There is now no denying that a slow-down has set in in Indian economy. The RBI, said its disaggregated analysis confirms that a broad-based cyclical downturn is underway in several sectors ? manufacturing, trade, hotel...