India’s economic momentum to remain strong post-election: S&P Global Market Intelligence
Indian government's capital spending, recovery in private consumption and investment are expected to help carry forward the economic momentum post-elections, S&P Global Market Intelligence said Monday.
The global research firm further noted that policy focus will likely remain on strategic sectors, like renewables, electronics, textiles, digital infrastructure, logistics, food production and services.
“These sectors drive Indian macroeconomic stability and growth, are of relevance to climate policy and energy transition, and support domestic employment. The parties also widely consider further development of these sectors to be beneficial for India’s foreign policy objectives,” it said.
S&P Global Market Intelligence expects inflation to ease to 5.3% in 2024 from 5.7% in the previous quarter.
The firm further pointed out that if the present dispensation (NDA) secures a two-thirds parliamentary majority on June 4, the focus will be to ensure India becomes the third-largest economy by 2030 and bring down its fiscal deficit to 4.5% of GDP by FY26.
In its interim budget, the government set a fiscal deficit target of 5.1% for FY25.
“Expanding the use of technology in government services and across the private sector is also very likely. Proposed legislation to regulate the use of personal data and domestic digital infrastructure, and on the use of artificial intelligence (AI) systems, will, therefore, increase in both Modi-government scenarios,” it said.
S&P Global also noted that the role of “national champion”
