Business Standard

PM Modi's July 5 budget key to reviving India's animal spirits

Analysts expect the new Modi government's first budget on July 5 to tweak fiscal levers to give a boost to the economy and get it back on a faster growth track

"Our goal, our path is to connect with the roots. We are not competing with you (Congress)...We will not do anything out of ill will or to take revenge," PM Narendra Modi

Anirban Nag | Bloomberg
India's economy showed signs of fragility in May after April's uptick, suggesting a sustained recovery needs a fiscal stimulus from newly re-elected Prime Minister Narendra Modi's government.

Overall activity from eight high-frequency indicators compiled by Bloomberg News show the economy lacked momentum, with the dot remaining unchanged from a month ago. A renewed tightness in liquidity conditions kept business activity subdued. The dashboard is a measure of “animal spirits,” a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action.

As gross domestic product growth slowed to a five-year low of 5.8% in the first quarter
Topics : budget 2019

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First Published: Jun 27 2019 | 7:00 AM IST

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