New delhi’ June’ 13: Amid the backdrop of global geopolitical and economic challenges, India has to strike a fine balance for maintaining the growth momentum amid flagging consumption demand and sticky inflation. While the country has clocked a growth rate of over 7 per cent in the last three years, challenges remain in the form of muted agricultural growth, weak exports and private investment.
The Reserve Bank of India (RBI) has projected a robust growth outlook for the country with the government’s sustained focus on capital expenditure while maintaining fiscal consolidation. However, the weakened mandate to the Bharatiya Janata Party-led National Democratic Alliance government may see the upcoming Budget stepping up expenditure on welfare schemes in order to reach out to the poor and rural sector, and this may pose a challenge to the fiscal consolidation roadmap.
