Budget-making is never an easy process, but this year might be particularly difficult. India’s growth fundamentals might be intact. If temporary supply shocks are looked through, inflation is in check. However, there is a palpable shift in the perception of India’s economic performance, with a flagging in momentum at a time when it was expected to accelerate.The 6.4% GDP growth estimate for 2024-25 released in January was slightly below the lower end of the 6.5-7.0% range forecast by the Chief Economic Adviser and well below the 7% projection of the RBI. This was not entirely surprising as it was an election year, and the government slowed its spending both before and after the July budget.
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