India’s Finance Minister Nirmala Sitharaman will present the federal budget on Saturday amid signs the world’s fastest-growing major economy is slowing down, with economists calling for a broad policy reset to address stagnant consumption and drive far-reaching reforms.
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The International Monetary Fund in its global economic outlook this month estimated the South Asian nation’s economic growth to remain at 6.5 per cent through this year and the next amid slowing industrial activity, down from a robust 8.2 per cent in 2023.
Despite retaining its status as a global growth leader even with the downturn, India faces a challenging landscape that industry executives hope the budget will tackle by removing pain points such as sluggish consumer demand and stalled privatisation.
“It will be the first full-term budget for the government’s third term and I would love to see broad directional reforms,” said Naushad Forbes, co-chairman of multinational engineering company Forbes Marshall.
India’s last federal budget was in July, after the ruling Bharatiya Janata Party returned to power in national elections albeit at the head of a coalition, following a loss of its outright majority.
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