India predicts slower 5% growth, likely prompting budget stimulus

The government on Tuesday forecast 5% growth for the current financial year, the slowest pace in 11 years, which will likely prompt the finance minister to opt for extra fiscal stimulus when she presents the annual budget next month.

The government is expected to announce tax concessions for individuals and increase spending on infrastructure after cutting corporate tax rates last year, officials and economists said.

Finance Minister Nirmala Sitharaman last week unveiled a plan to invest Rs 102 trillion ($1.4 trillion) in infrastructure over the next five years in a bid to make India a $5 trillion economy by 2025.