Its not just India that will be watching the budget -- the West which is still grappling with recession blues seems to be looking for some good news on the Economic front from India.
All eyes are on the India's Budget 2009 and, there's good reason for that. With the world still on the economic sick-bed. It's hoped Pranab's budget will offer a booster dose.
A booster dose not just for the Indian economy but, for global investors struggling with profit margins in their home countries. Multi-nationals are keenly watching, what the budget says on limits or restrictions on investing in India. Keeping in mind the MNCs foreign direct investmenmts in India is a potent antidote to fight the economic blues at home.
And fighting the blues is what's keeping the U-S President pre-occupied. Most recently taking a protectionist stand, saying no to Bangalore and yes to Buffalo.
Obama said, "We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits.
The Obama administration will be closely watching to see what incentives the budget offers for American companies with operations in India. Will it mean more outsourcing? After all that's a political hot potato here in the US. On the other hand, for companies they'll be keeping their fingers crossed for a bag of goodies from Pranab Mukerjee.
China has been doing everything it can to keep foreign investments coming to its shores. With companies feeling the pinch -- Bejing will be keen to see what New Delhi puts on the table. A juciy carrot been dangled by India, could mean losing multi-billion dollar investments.
Source : Times Now