Getting investment activity buzzing again

The Budget and the Economic Survey have emphasised the need for investment and export led growth. There is, however, no fiscal stimulus as fiscal rectitude is being maintained. Recapitalising public sector banks with Rs 70,000 crore, restoring health of the NBFCs, leaving more funds with the banks with government itself borrowing overseas for the first time, and steps to strengthen the bond market, are intended to get the financial sector into good health so that higher levels of private investment can be readily financed at lower interest rates.