
In the upcoming Union Budget, the focus on investment over consumption is deemed more pertinent for India’s economic landscape. Experts anticipate potential support for rural welfare schemes, possibly in the form of direct cash transfers or a social safety net. Chief Economist at Crisil, emphasized the government’s fiscal strategy, highlighting a preference for capital expenditure (capex) over direct consumption boosts. While there may be efforts to address the needs of the struggling rural sector, the primary thrust is expected to be on enhancing the productive capacity of the economy through investments. Chief Policy Advisor at EY India, underscores the relevance of the investment route, given global conditions and the shift toward capital-intensive techniques. He stressed the importance of recognizing both potentials and challenges as India moves towards becoming a developed economy. Chief India Economist at Citigroup, notes a unique economic cycle where the supply side is expanding rapidly while the demand side faces challenges. Balancing and synchronizing the demand and supply sides will be crucial for achieving a sustainable and stable equilibrium, ensuring a robust long-term growth strategy for India. As the budget unfolds, these insights shed light on the strategic emphasis on investment-led growth and the considerations for addressing economic challenges.