Modi’s Budget To-Day: From Populism to Growth?
The Indian Budget Speech, to be delivered by Arun Jaitley today, is likely to be the most reform-oriented since Dr. Manmohan Singh’s much heralded effort in 1991. India’s growth rate has halved to 4.5% last year. Policy paralysis has reduced confidence among both domestic and foreign investors. Bureaucratic inertia had stalled the pipeline of large infrastructure projects. The budget deficit had increased to unsustainable levels and inflation was persistently high leading to elevated interest rates that stifled economic activities.