Modi’s Budget Offers Few Solutions to Revive India’s Weak Economy

NEW DELHI — India is stuck in its biggest economic slump in more than a decade, but Prime Minister Narendra Modi’s budget for the new year, unveiled on Saturday, offers only small steps to try to create a turnaround.

The government’s $428 billion budget for 2020-21 laid out a series of modest initiatives, including planned investments in new roads and airports and personal income tax cuts, along with an increase in bank deposit insurance to reassure customers rattled by high-profile bank failures.

But it offered no large stimulus program to provide more jobs or money in the pockets of India’s 1.3 billion residents, most of whom barely get by through farming or work in the informal economy. Nor did the budget propose any additional support for the country’s weakened financial institutions.

“Our government shall work towards taking the country forward so that we can leapfrog to the next level of health, prosperity and well-being,” said Mr. Modi’s finance minister, Nirmala Sitharaman, while announcing the budget.

Article source: https://www.nytimes.com/2020/02/01/world/asia/india-modi-economy.html?emc=rss&partner=rss