INSTANT VIEW-India unveils higher spending for infrastructure in growth budget

The government has projected growth at 8% to 8.5% compared with an estimated 9.2% for the current fiscal year and a 6.6% contraction the previous year. All macro indicators indicated Asia's third-largest economy was well-placed to face challenges, helped by improving farm and industrial output growth, the government's annual economic survey said on Monday.

Indian Finance Minister Nirmala Sitharaman said on Tuesday that the budget for 2022/2023 will lay the foundation for economic growth through public investment as Asia's third-largest economy emerges from a pandemic-induced slump. The government has projected growth at 8% to 8.5% compared with an estimated 9.2% for the current fiscal year and a 6.6% contraction the previous year.

All macro indicators indicated Asia's third-largest economy was well-placed to face challenges, helped by improving farm and industrial output growth, the government's annual economic survey said on Monday. Here are some reactions from Indian businesses, economists and analysts:

RUPA REGE NITSURE, GROUP CHIEF ECONOMIST, L&T FINANCIAL HOLDINGS, MUMBAI "The budget has consciously recognised the need to nurture growth and its fiscal deficit levels for FY22 & FY23 are growth-supportive. Measures announced for infra building including roads and railways and renewable energy sectors, MSMEs, farm sector represent the need of the hour. Measures to reduce the imports of oilseeds and defence equipment are positive for rupee in the long term."

UPASNA BHARDWAJ, SENIOR ECONOMIST, KOTAK MAHINDRA BANK, MUMBAI "The fiscal outcome is broadly in line with our expectations with the government having continued its focus on infrastructure and rural demand. As expected, the government has refrained from a sharp consolidation. While the fiscal expansion is expected to be pro-growth, the heavy supply is expected to worry the bond markets."

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