The key factor to be keenly watched is how best the government manages to stay on the fiscal consolidation path while spurring demand and boosting growth
Growth can only happen if the budget sticks to the fiscal consolidation road map, thereby not exerting pressure on interest rates, yet providing impetus to areas that can propel demand
Highlights Markets going into the budget on a sombre note Main wish – budget delivers on fiscal consolidation while boosting demand Fiscal headroom in FY24 likely to be limited – expenditure management key Capex push, including in defence, to be watched Employment generation through manufacturing, China-Plus strategy critical Reduction in fertiliser subsidy and redirecting the same to spur rural demand expected Gross borrowing in excess of Rs 16 lakh crore will be seen as a negative Indian markets are going into the Union budget on a sombre…
