2010 is going to be a tough year. If 2009 was the year of the unexpected, 2010 may turn out to be a year of the unwanted – all ghosts that we feared may actually return to haunt us.
But it will also not be a year without optimism. Stock Market and men have triumphed over much worse and while the New Year may end up being a year full of challenges, it will also stimulate a combative spirit and end leaving behind a feeling of accomplishment and exhilaration.
So what all should we look out for in 2010? My list of 10:
1. Domestic Consumption:
This factor has been the most important in seeing us through 2008 and 2009. No doubt- backed by the criticised award of the 6th Pay Commission which released Rs. 50,000 crores in two tranches and a stimulus package which left a targeted fiscal deficit of 6.8% in FY11.
The Pay Commission arrears have already been disbursed and have had their impact on demand. In the absence of demand from the private sector, a 22% rise in government expenditure provided a necessary substitute. With employment and wages improving in the private sector, we can expect that the momentum should be maintained. More....