Give more funds for rural schemes and for asset creation, substantially increase scope of PLI and reduce deficit moderately
The 2023-24 budget’s top priority should be to help brace the Indian economy from the impact of an impending global slowdown – with minimal sacrifice. Therefore, the budget should be inward-focussed, focussed on increasing domestic demand as well as supply. That will steady the economic sailboat and facilitate a structural moderation in CPI inflation towards the 4% target.
Rural consumption needs support
Domestic consumption saw a near full recovery in 2022 versus pre-pandemic levels thanks to pent-up and festive demand in goods, and reopening dynamics in services. Exports are slowing down and private capital expenditure is yet to take off meaningfully, despite above-trend capacity utilisation levels. The budget therefore must strive to keep this consumption momentum intact well into 2023-24.
Rural consumption needs support
Domestic consumption saw a near full recovery in 2022 versus pre-pandemic levels thanks to pent-up and festive demand in goods, and reopening dynamics in services. Exports are slowing down and private capital expenditure is yet to take off meaningfully, despite above-trend capacity utilisation levels. The budget therefore must strive to keep this consumption momentum intact well into 2023-24.