This may be necessary too for exports, but exports are only one sector albeit a crucial one. It does not make for bullish sentiment on the economy as a whole. In policy terms much the greater leeway for stimulationwould have come from earlier prudent macro-economic management. That is manifestly not the case. Expenditure management never took off under the UF government and things have not improved since.
Increased spending can only mean a gaping deficit and disaster on the inflation front.
That the government will go ahead with its disinvestment in four public-sector undertakings without waiting for the market to pick up are brave words, but they better reflect the BJP's economic illiteracy than any likelihood of this jolting a somnolent market. India's ill-conceived divestment programme has been a disaster in far better market conditions. There is no reason to think that it will do anything now to boost the economy. This government does not seem up to getting it out of this mess. Even sparing the country further policy disasters would be something to be thankful for.