Centre To Tap Brakes On Capex Growth, Key Subsidies: Report
NDTV
Prime Minister Narendra Modi's government has more than doubled capital spending since fiscal 2019/20 in a bid to make India a more attractive destination for global manufacturing.
The Indian government is set to tap the brakes on a torrid pace of capital investment growth in the coming fiscal year as a slowing economy limits spending power by weakening tax revenue, according to a Reuters poll of economists.
Food and fertiliser subsidies that help two-thirds of India's 1.4 billion people will also be scaled back, according to the survey.
Prime Minister Narendra Modi's government has more than doubled capital spending since fiscal 2019/20 in a bid to make India a more attractive destination for global manufacturing. But private investment has lagged New Delhi's lead for about a decade.
Now, that robust pace of government investment is set to slow to barely half its previous rate in the fiscal year to March 2024, according to the Jan. 13-20 Reuters poll of 39 economists.
