NEW DELHI: The Indian government is set to unveil its budget on Monday as it faces pressure to boost growth while also appealing to the country’s poor. Having overtaken China as the world’s fastest-growing economy, India is seen as a bright spot in the global economy. But it has been hit by slowing global demand and severe droughts affecting rural areas.
Finance Minister Arun Jaitley also faces pressure to implement promised reforms. Prime Minister Narendra Modi’s government is expected to increase spending on the rural economy, health and social sectors.
Critics though are concerned this could mean a turn from market reforms and fiscal discipline, which are at the heart of the business community’s wish-list for the budget. The government needs to “strike a balance between fiscal stimulus and reforms,” Mehda Samant of Fidelity Investments told the BBC. “We’re expecting a clear roadmap for policy reform and economic intent.”
