Second Modi govt faces task of perking up economy despite fund crunch

The incoming government will have to encourage private investments, bring down cost of capital

The Narendra Modi dispensation has little time to celebrate the landslide win in the Lok Sabha election as it will have to immediately address challenges facing the economy, which is witnessing a slowdown. 

While the economy is stuck at 7-7.2 per cent growth for the last two financial years, and is not expected to grow any better this time, the government found hard to meet the fiscal deficit target of 3.4 per cent for FY19. The challenge now is to turn around the economy in these circumstances. 

The incoming government is set out to stamp its reform agenda fast, with the buzz