Mumbai – In a recent statement, Union Finance Minister Nirmala Sitharaman emphasized the importance of government stability in the current election atmosphere. She highlighted that the stability of the government, particularly in terms of taxation policy, is a crucial factor for market efficiency.
“For markets to be efficient, the stability of the government, stability of policy particularly of taxation policy, predictability and above all a soft touch regulatory framework. These are the high points with which markets become efficient, and markets function without volatility,” Sitharaman said.
The Finance Minister pointed out that in the past, indices such as the poverty index and the human development index were keenly watched. However, in today’s scenario, what is closely monitored is the Volatility Index (VIX) of the market.
Sitharaman’s comments come at a time when the nation is in the throes of election fever. Her emphasis on the stability of the government as the first criteria underscores the importance of a stable and predictable government in ensuring the smooth functioning of markets.
The minister’s focus on a ‘soft touch regulatory framework’ also indicates a move towards more market-friendly policies that could potentially reduce market volatility and foster economic growth.
As the nation heads towards the polls, Sitharaman’s comments serve as a reminder of the critical role that government stability and sound policies play in ensuring market efficiency and overall economic health.
