The budget does well on both the big Cs: Capex and Consolidation

It aims to sustain the infrastructure momentum while a reduced fiscal deficit could also work in favour of economic growth

- CHANDRAJIT BANERJEE

Emphasis on the two big Cs—Capex and Consolidation—was the hallmark of India’s interim budget for 2024-25. This will help fortify domestic macroeconomic stability even though global conditions have not been supportive. The roadmap for strengthening growth within the precincts of sustainability and inclusivity will help the Indian economy remain on a sound footing, aiding its journey towards becoming a developed nation by the end of the Amrit Kaal period.

The government’s concerted focus on capex-led growth has kept the economy in good stead, aiding its emergence as the fastest-growing major economy in the world for three consecutive years by logging 7%-plus real gross domestic product (GDP) growth. The high multiplier effect of capital spending helps by spurring investment-led growth, as it creates jobs, leading to a further increase in spending. This has been effectively used in the last two years to step up the growth momentum.