The reforms could see structural policy changes in areas such as land, labour, capital and entrepreneurship.
New Delhi: Union Finance Minister Nirmala Sitharaman’s first budget will set the stage for reforms over the next five years, reported Hindustan Times. The reforms could see structural policy changes in areas such as land, labour, capital and entrepreneurship.
The interim budget presented on February 1 announced several popular decisions. This budget is seen as a boost to sagging economic growth and address unemployment. These two have been the main concerns for the government.
The upcoming budget may incentivise job-oriented private investment and focus on skill-development initiatives. The government is likely to persuade banks, particularly public sector ones, to slash interest rates in order to boost consumption.
According to officials, it is likely that the Reserve Bank of India could further lower lending rates to provide more room to commercial banks for cheaper loans.
The government is expected to continue its policy focus on rural India and the same is expected to be reflected in the budget as rural development has immense potential to create both demands and jobs.
The first budget of the Narendra Modi government’s second tenure is expected to be a precursor of major economic reform with an objective to make India a USD 5 trillion economy by 2024, about double its current size.
Officials said the budget might take some key decisions to boost the real estate sector which could have a multiplier effect on the economy as it would spur demand for steel, cement and labour, particularly in the unorganised sector.