Donald Trump's unpredictable trade policies and protectionist stance could overshadow Nirmala Sitharaman’s ambitious Budget plans to reduce the fiscal deficit, boost capital expenditure, and maintain high economic growth in India
Will Donald Trump spoil finance minister Nirmala Sitharaman’s party? The coming Budget should have been Sitharaman’s big day, with her sights set on achieving the remarkable trinity of reducing the fiscal budget to 4.5% even while raising capital expenditure and growing the economy at 7%, making India the fastest-growing major economy. Reducing the fiscal deficit from 9.3% of GDP in the year of Covid to 4.5% in 2025-26 would typically have meant austerity and a fall in growth and capital spending, something she has skilfully avoided.