The FM has announced an increased capital investment outlay by 33.4% to ₹10 lakh, which could lead to employment generation in the mid to long-term and hence an increase in demand-led consumption
‘Personal loans’, rather than credit to agri, industry, and services, remains at the top and drive credit offtake, which needs to be corrected to avoid low-middle income trap and stalling growth
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 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.