India aims to push spending power of middle class, boost investment to support growth
India will focus on boosting middle class spending power, encouraging inclusive development and boosting private investment to strengthen growth, Finance Minister Nirmala Sitharaman said on Saturday, announcing the annual budget.
The world's fifth-largest economy is expected to post its slowest growth in four years amid frail urban demand and weak private investment.
The country's chief economic adviser, in a report released on Friday, forecast India's economy would remain sluggish in the fiscal year beginning April 1, advocating long-delayed reforms in areas such as land and labour to boost medium-term growth.
While near-term growth is in line with the 10-year average, India needs a growth rate of 8% to meet its longer-term economic goals and create enough jobs for its large, youthful population.
Economists have suggested the government ease the burden on individuals through tax cuts on income and energy products and to build on the $24 billion programme of job creation schemes announced in the first post-election budget in July.
