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Perspective on Economic Survey by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services

“The Ecosurvey depicts a positive picture about the economy ahead, hoping that the growth trajectory will be supported by multiple structural reforms taken over the years, and better economic health of corporates and banks balancesheets, helped by healthy public sector capex. The hope is that all of it should help in starting a new private sector capital formation cycle – signs of which are visible. However, the global risks of slowdown/recession, tighter financial conditions, external sector imbalances pose a risk.

We think, despite recovery in domestic economic activity not yet broad-based, protracted global drags in the form of still-elevated prices, shrinking corporate profitability, demand-curbing monetary policies and diminishing global growth prospects weigh on output. This will put pressure on the domestic growth story, which still lacks the next lever of secular growth.”

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