Budget 2024: Higher capex to shift towards energy-efficient policies, here are key reforms expected

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Also Read: Budget 2024: 10 experts share what they expect from the coming Budget According to Deloitte India, the upside risks in the current environment include strong economic growth, robust spending on infrastructure and recovery in the MSME sector. On the contrary, the downside risks include a rise in inflation, election uncertainties, geopolitical concerns and diverging demand gaps. “India will have to rely on its own domestic demand to drive its growth, specifically, private consumption and investment spending.

However, inflation could affect stability in growth. We expect higher prices over the next 1.5 years; prices are expected to remain in the upper range of the RBI’s inflation target band over the forecast period," said Rumki Majumdar, Economist, Deloitte India. > Over the past five years, the government has focused on building a strong infrastructure.

It is expected to divert some of its expenses towards improving the port and shipping; energy, especially green and sustainable energy; and urban infrastructure. In this budget, Deloitte India expects the government’s focus should be on the transition from carbon-dependent to energy-efficient policies. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) > A higher capex spending by the government is expected to crowd in capital spending.

That said, it will require some government incentives and a few measures in this direction, as per Deloitte India. > In GDP, export growth contracted by 7.7% in Q1FY24 after growing in double digits for the eight consecutive quarters. As the slowdown was largely driven by deceleration in growth of major economies, boosting exports