It is a big surprise and very unexpected news,” said Yogesh Nagaonkar, founder and chief executive of Rowan Capital Advisors in Mumbai. “The initial expectation of the market from her would be to see how she addresses liquidity concerns. We need to have good liquidity in the market to achieve growth.”
Nagaonkar said the ministry should have gone to Piyush Goyal, a chartered accountant who had stepped into the role twice in the previous government when Jaitley was out sick. Goyal will now be minister of railways and commerce, at a time when trade ties with the United States are straining.
Sitharaman will take over the finance ministry
when there is pressure from industry for the government to provide some stimulus to halt a worrying slowdown in India’s $2.7 trillion economy.
India probably lost its spot as the fastest growing major economy to China in the January-March quarter as a chill in domestic and global consumer demand hit manufacturers and service providers. Data for the quarter is set to be released later on Friday.
The government is already considering rolling out a slew of ‘big-bang’ economic reforms in the first 100 days of Modi’s second term, with a focus on privatisation of state assets and relaxation of labour and land rules for businesses, a top official at the government’s main think tank told Reuters.
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