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What does the Indian government have upped its sleeves for the national | :00:17. | :00:25. | |
budget? -- up. All will be named today. And where to from here? The | :00:26. | :00:31. | |
world's financial leaders will meet in Shanghai. . Good morning. It is | :00:32. | :00:40. | |
the start of a brand-new trading week. Officially, India may have the | :00:41. | :00:49. | |
fastest growing economy in the world, but when the Finance Minister | :00:50. | :00:53. | |
delivers the financial budget later it will be a tricky balanced. They | :00:54. | :01:02. | |
will have increased spending to cover the maintenance of the | :01:03. | :01:05. | |
country. Everyone will be waiting and watching when the Finance | :01:06. | :01:11. | |
Minister talks. Will he prioritise fiscal stimulus or a form or capital | :01:12. | :01:24. | |
expenditure? -- or reform. It is in this building behind me, the | :01:25. | :01:27. | |
Parliament, that the budget will be delivered in four hours. It is the | :01:28. | :01:35. | |
big headline in the newspapers. This paper is doing a take on the Oscars | :01:36. | :01:41. | |
in Los Angeles. The Finance Minister is there in a tuxedo holding up an | :01:42. | :01:46. | |
Academy Award. They are asking how me Oscars will he get today? -- | :01:47. | :01:56. | |
many. This says he will boost the economy a little bit. It has | :01:57. | :02:01. | |
suffered over the past few years. Consumption and demand has not gone | :02:02. | :02:05. | |
up in the country. Narendra Modi, in a radio address to students | :02:06. | :02:09. | |
yesterday, talked about how this budget would be his big examination. | :02:10. | :02:16. | |
We have asked business leaders what they are expecting. Until private | :02:17. | :02:25. | |
spending or public-private partnerships returned to invest here | :02:26. | :02:30. | |
we expect that from the budget greater fiscal space and spending to | :02:31. | :02:37. | |
drive forward infrastructure projects as was done last year. -- | :02:38. | :02:42. | |
return. I hope they resolve the foreign investment. Not just that a | :02:43. | :02:47. | |
policy level but at a more execution level. Money has gone away because | :02:48. | :02:56. | |
the whole process is so tedious, unlike many other countries. We | :02:57. | :03:07. | |
expect mining, which the government has taken on as a big challenge and | :03:08. | :03:15. | |
executed, I think that should have realisation. They have the building | :03:16. | :03:24. | |
blocks. They should start. The GST bill gets passed by the government | :03:25. | :03:31. | |
and the Upper House. We do away with the plethora of different taxation. | :03:32. | :03:37. | |
I hope the Indian budget would have provisions to spur the Indian | :03:38. | :03:43. | |
economy We are seeing so much growth in technology, start-ups, | :03:44. | :03:48. | |
entrepreneurs that are making a splash on the blood stage, that will | :03:49. | :03:54. | |
require funding. -- world stage. Potentially putting together | :03:55. | :03:58. | |
regional funds and computer education for the masses. They can | :03:59. | :04:05. | |
help with that. The big question is, does Narendra Modi have the | :04:06. | :04:08. | |
political capital to push forward with this wish list from the | :04:09. | :04:17. | |
business community? That is right. Some of the promises they have made | :04:18. | :04:22. | |
during that election in 2014, we haven't seen many of them being | :04:23. | :04:26. | |
delivered until now. Especially a major tax reform that would simplify | :04:27. | :04:31. | |
tax across the country. But in the budget today, what will be the big | :04:32. | :04:35. | |
challenge facing the Finance Minister is how much will the | :04:36. | :04:39. | |
government reach out into its own pocket? In 2015, when India became | :04:40. | :04:47. | |
the fast growing major economy at over 7.5% growth, that was driven | :04:48. | :04:51. | |
primarily by government spending. We haven't seen private spending | :04:52. | :04:58. | |
takeoff that much. To push the economy forward that is what the | :04:59. | :05:00. | |
government needs to do. At expenses will go up this year. There is a | :05:01. | :05:05. | |
once in a decade hike for government employees coming in this year so | :05:06. | :05:10. | |
they will need $16 billion for that. The industry will expect some | :05:11. | :05:16. | |
benefits. Tax exemptions, for example. With regional elections | :05:17. | :05:21. | |
coming up, people will be watching for tax benefit. People will be | :05:22. | :05:28. | |
watching how they raise money. -- benefits. Thank you. She will cover | :05:29. | :05:34. | |
the budget throughout the day from Delhi. To find out more about the | :05:35. | :05:41. | |
budget... Sorry, moving on. A key measure of sentiment among South | :05:42. | :05:48. | |
Korea's manufacturers has dropped to its lowest level since 2009. The | :05:49. | :05:55. | |
index for March dropped to 65. A reading below 100 indicates the | :05:56. | :05:59. | |
number of companies expecting deterioration outnumbers those | :06:00. | :06:04. | |
seeing improvement. Industrial production in Japan has risen for | :06:05. | :06:07. | |
the first time in three. That is according to government data just | :06:08. | :06:13. | |
out. -- three months. It is expected to be a temporary rise. Retail sales | :06:14. | :06:22. | |
in January fell by .1%. The faltering state of the world economy | :06:23. | :06:25. | |
and tabular markets dominated discussion in Shanghai this | :06:26. | :06:30. | |
weekend. The finance ministers and central bank workers merged to | :06:31. | :06:38. | |
discuss. Almost all countries are suffering as a result of China's | :06:39. | :06:40. | |
economic slowdown, not least Australia. We asked the Australia | :06:41. | :06:46. | |
and Treasurer Scott Morrison how worried he was. What is happening is | :06:47. | :07:00. | |
not an anticipated. -- unanticipated. Their growth, even if | :07:01. | :07:05. | |
slower, is not a bad thing for Australia. At the same time, we are | :07:06. | :07:16. | |
seeing growing areas of our economy now, the health sector, the services | :07:17. | :07:20. | |
sector, they are growing and connecting to the growing consumer | :07:21. | :07:26. | |
economy in China. None of this is a great shock to us. We deal with this | :07:27. | :07:32. | |
all the time. Yeah, there is a transition, but that is the new norm | :07:33. | :07:38. | |
in the economy. We and China are going through a transition and they | :07:39. | :07:42. | |
are synced. We are optimistic. How do you rate the Chinese government | :07:43. | :07:46. | |
and their ability to deal with volatility? How confident is your | :07:47. | :07:53. | |
government they can deal with it? They will deal with their challenges | :07:54. | :07:59. | |
how they see fit. How do you rate their capabilities? We cannot expect | :08:00. | :08:05. | |
them to behave in the same way that we do. Whether it is the Australian | :08:06. | :08:12. | |
reserve bank or the central bank. I think that they have other levers to | :08:13. | :08:15. | |
pull. The banking sector is completely different to ours. We can | :08:16. | :08:21. | |
have false expectations about how they respond. What I am convinced of | :08:22. | :08:26. | |
his where they are heading, and that is that they are committed to | :08:27. | :08:30. | |
growth. There will be bumps along the road in terms of how they manage | :08:31. | :08:34. | |
these issues, they have exchange rate and capital flowed issues. They | :08:35. | :08:39. | |
are dealing with it in a Chinese way. -- flow. But we are patient and | :08:40. | :08:49. | |
respectful. Scott Morrison. Let's return to the lead story. The budget | :08:50. | :08:55. | |
and India which will be revealed today. -- in. It is a bit tricky. | :08:56. | :09:04. | |
Expectations are high. From our perspective, sitting here in Asia, | :09:05. | :09:08. | |
what we expect the government should focus on is three things, one is, | :09:09. | :09:16. | |
yeah, balancing out the fiscal stimulus, prioritising capital | :09:17. | :09:20. | |
expenditure is absolutely needed, at the same time, their hands are tied | :09:21. | :09:26. | |
when it comes to expenses going up because of these impending wage and | :09:27. | :09:31. | |
pension hikes. From a sector perspective it is really important | :09:32. | :09:39. | |
that they address how to revive the rural economy, agriculture, the | :09:40. | :09:42. | |
state of the farmers in India, that is likely to be in focus again. And | :09:43. | :09:48. | |
it is also about providing a clear roadmap for policy reform. | :09:49. | :09:54. | |
Implementation of the much talked about GST bill and rebalancing | :09:55. | :10:04. | |
public sector economies, that is likely to be a focus. Revising the | :10:05. | :10:10. | |
rural economy so badly affected by recent monsoons. If they do this it | :10:11. | :10:15. | |
will boost demand in general by having a multiplier effect. | :10:16. | :10:20. | |
Absolutely. What we really need to see is demand improved in the rural | :10:21. | :10:33. | |
economy. For example, in the auto industry, two wheeler sales is down | :10:34. | :10:40. | |
when it should be up. Thank you so much for investing your time with | :10:41. | :10:44. | |
us. I am Rico Hizon. Goodbye for | :10:45. | :10:45. |