AROUND ASIA: INDIA
Date: 14 Dec 2015 Source: Bangkok Post-ASIA FOCUS
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A proposal for the first civil service pay increase in a decade could be a windfall for India's US$1.4-trillion stock market, which is headed for its first loss in four years. The raises "would put a lot of money in the hands of consumers in one shot", said Vikas Gupta of Mumbai-based Arthveda Fund Management. "2016 will be a year of consumption. There's no question about it." For that reason, he is recommending stocks of companies in the motorcycle and auto-parts businesses. The government is weighing a plan to double civil-service wages, which could represent a stimulus of up to 4.8 trillion rupees or 2.8% of GDP.