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With fy24 budget, india shows signs of shift in growth strategy
- The Modi administration’s latest budget will have a mildly contractionary stance for the economy. This is broadly appropriate to balance consolidation and growth concerns.
- The boost in public capital spending is welcome given the growing demands on India’s infrastructure, although questions remain on the pacing and quality of investments.
India’s prospects: one (huge) positive and three risks
- India’s economic prospects will be driven by a burst of entrepreneurial activity, the seeds of which were planted by expanding access to digital and financial services.
- However, to sustain a true economic take-off, India needs better approaches to its structural weaknesses such as macroeconomic management, a closed attitude to international trade and investment, and socio-religious cleavages exacerbated by politics.