The budget session of both houses of Parliament re-commences for its second half today in New Delhi after a three-week recess.
Like last year, this year’s budget focuses on growth as a way to lift people out of the economic downturn brought about by the pandemic.
The Finance Ministry’s monthly economic report said the present year may come to a close with a post-COVID-19 international economic reset manifest. Manufacturing and construction will be the ‘growth drivers,’ fuelled by PLI programmes and government infrastructure investments.
Agriculture, which is continuing to grow, will continue to contribute to food security while the PM KISAN plan includes some financial stimulus to help farmers economically.
It added India is still the only large and major country listed by the IMF whose growth projection has been revised upwards in 2022-23, despite the IMF’s January 2022 update lowering its global growth estimate for 2022.
Consumption is expected to increase as the uncertainty of COVID-19 passes, and the demand rebound will allow the private sector to step in with investments to boost production to satisfy rising demand. Expect the Indian economy to rebound in 2022-23, barring geopolitical and economic surprises.
Laura is a research analyst on the Current Developments team. Presently undertaking a Juris Doctor, her areas of expertise include human rights and international law. Laura contributes to the daily brief, typically on matters within Europe and the Asia-Pacific.