Congress-led UPA continues to make audacious economic reforms being led by P Chidambaram, the finance minister who recently announced that the unsubsidized LPG cylinders would not have any applicable VAT or custom duties.

The Finance Minister mentioned that the tax on the external commercial borrowing (ECB) wold be lowered to a 5% level from the existing 20% level. The good news for first time investors in trade market is that the Rajiv Gandhi Equity Schemes were approved.

The happiest segment with the decision of FDI in retail is the share market as it has announced that the BSE Sensex had received a boost of at least 450 points in a single day already. This is notably the single largest gain on a day this year.

The atmosphere in the markets brightened up as Samajwadi Party chief Mulayam Singh Yadav extended to his support to the UPA. After Trinamool Congress mentioned that their party would withdraw from the UPA, Congress has become a minority.

With support from Mulayam Singh in the Lok Sabha, UPA government has better chances of enduring the lack of support from Trinamool.
The government had notified its decision to allow foreign direct investment in multi-brand retail, aviation and broadcasting sectors on Thursday while the opposition parties have all tried to resent the decision by means of a bandh in the nation.

(AW- Anil)