Budget 2024: Six takeaways from India PM Modi’s new spending plan

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The outlay on state-led capital expenditure on infrastructure creation has remained unchanged from the $134bn announced in the interim budget.

“However, it is clear the focus has now become more diversified to other areas like employment, small businesses and social welfare,” said Shubhada Rao, economist and founder of QuantEco Research.

The budget is clearly more redistributive in nature, she added, and while there’s not necessarily “more direct cash in the hands of people”, announcements such as salary credits to new employees and minor tax tweaks could improve disposable incomes.

India’s finance ministry expects the economy to grow between 6.5% and 7% in the financial year ending March 2025 – lower than 8.2% last year and below forecasts from the central bank as well as multilateral bodies like the International Monetary Fund and the Asian Development Bank.

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