
Budget 2022 unlikely to spur consumption in the short-term
Putting money in the hands of the consumers could have helped grow consumption, say experts.
Putting money in the hands of the consumers could have helped grow consumption, say experts.
Per capita consumption expenditure, a key indicator of household spending, had contracted in FY21, before regaining momentum in FY22.
Savings and investment rates are on a prolonged downward swing; cheap credit and corporate tax cut have failed to revive investor spirit or regenerate ‘animal spirit’ in the economy
The signs of a pick-up hold out hope, but regaining lost ground is the tough task ahead.
The consensus is that of the four engines of India’s GDP growth only one, government consumption—12% share of the economy, will be firing. The rest are sputtering or stalled.
Through an outreach programme after the Budget, finance minister Nirmala Sitharaman explains how her Budget proposals would aid economic growth while remaining fiscally prudent.
Following Saturday’s 987.96-point fall, the S&P BSE Sensex closing at 39,872.31, just 136.78 points higher, on Monday shows that the markets are still unhappy with the Budget.
India’s largest FMCG company reported healthy earnings growth, but forecast subdued demand in the short term.
India Ratings maintains a ‘negative’ outlook on the NBFC sector for FY21 in view of slower balance sheet growth, elevated slippages, and low-profit visibility.
The government should consider raising the cap on housing interest deduction and relax norms for LTA exemption in the Budget.