Indian Economy awaits Narendra Modi’s Magic During Budget 2014

Prime Minister Narendra Modi has taken charge of an economy that is facing the twin problems of high inflation and much-below potential growth. The Union Budget to be presented by Finance minister Arun Jaitley will also decide the direction of sluggish economy. Rising food prices has emerged as one of the big challenges for the government.

The budget would be the first major economic statement from the newly elected government and is likely to signal its stance on various issues such as fiscal consolidation, reviving growth and investment, tax policies and the new Finance Minister will have to try to balance expectations and reality.

 

 

 

The government is likely to present the 2014-15 Union Budget in the second week of July as the vote on account approved by the previous Parliament ends on July 31 and a new budget has to be in place before that date.

 

 

 

Elevated costs for food items have added to inflationary pressures. Below average rainfall predicted between June-September this year, could hit summer crops, increasing price pressures and impacting economic growth.

 

 

 

The nation is keenly awaiting the budget for policy cues and the government’s strategy on reviving growth, containing inflation, trimming subsidies and measures for the farm and manufacturing sectors. The government has vowed to revive growth, which has slipped below the 5% mark for two consecutive years and has said taming food inflation remains its top most priority.

 

 

 

To get an informed view, nnis spoke exclusively to the chief economist of PHD chamber of commerce.

 

LOOKING FOR REFORMS IN THE LABOUR MARKET

 

MEASURES WILL IMPROVE THE ECONOMY

 

INCREASING THE FARE IS A GOOD THING

 

ECONOMY IS FACING CASCADING EFFECTS

 

 

 

INFRASTRUCTURE SECTOR IS VERY WEAK

 

TOP AGENDA FOR PHD CHAMBER IS MANUFACTURING SECTOR REFORMS

 

 

 

DON’T SEE ANY WEAKNESS IN THE GUJARAT GROWTH MODEL 

 

 

 

 

 

Tags : arun jaitley, finance minister, Potential growth, High inflation, Economy, narendra modi, Budget2014, India, English

 

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