Why Laggard states of India must buckle up to boost public capex; Samiran Chakraborty of Citigroup explains
Furthermore, the share of capital expenditure in the government’s total expenditure can increase from the current 12% level with continued compression on subsidy expenditure (down from a peak of 2.6% of GDP to 1.6% of GDP recently) including through targeted subsidies (DBT).
The private sector investment could reach $905 bn from $272 bn over the next 10 years, buoyed by NPA resolution, easing of corporate leverage, global demand recovery, etc
The budget has made a prudent beginning and set the stage for the government to push its reform strategy further.
The last monetary policy statement by Governor Rajan was status quo on interest rates but still accommodative at the margin.