Ahead of the Union Budget announcement, India’s macro conditions are beset with a concomitant decline in corporate profits, persistently lagging private capex, dipping household earnings and spending sentiment, paucity of deposits impeding the lending capability of banks and the adverse wealth effect from a steep ₹68 trillion erosion of market cap of Indian equity markets since September 2024, which is larger than the 2024-25 Budget by a multiple of 1.4 times.The key question is whether the central government can show the intent or has the bandwidth to untangle the structural and cyclical logjam.
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