Budget 2020-21: The government must spend more on infrastructure to boost employment and spur economic growth in the upcoming budget, an ace global investor said.
Union Budget 2020 India: The government must spend more on infrastructure to boost employment and spur economic growth in the upcoming budget, an ace global investor told CNBC TV-18. An increase in spending in infrastructure is expected to speed up commerce and trading activity in the economy, Mark Mobius of Mobius Capital Partners also said in an interview. The move would also help in generating employment as more workers would be needed to work on roads, bridges, and tunnels, he noted.
Finance Minister Nirmala Sitharaman is expected to present budget 2020 in Parliament on February 1, 2020. The budget comes at a time when the economy is seeing a downturn and recorded a dismal growth rate of 4.5 per cent in the second quarter of the ongoing fiscal.
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The government, last week, unveiled Rs 102 lakh crore worth infrastructure projects that would be implemented in the coming five years as a part of spending push to boost the sluggish economy.
On the ongoing turmoil in the Middle East, Mark Mobius said that the tension may cause the brent crude prices to rise even further. The oil prices are key monitorable for the equities in such a scenario, he added. The Donald Trump-led administration of the US is unlikely to pull back when it comes to escalating tensions. Meanwhile, the benchmark equity indices rebounded about 500 points in the early trade Tuesday as investors calmed on no further escalation in tensions in the Middle East. After hitting a high of 41,135.47, the 30-share BSE index was trading 450 points or 1.11 per cent higher at 41,126.63. Similarly, the broader NSE Nifty surged 132.25 points or 1.10 per cent to 12,125.30.