The march of prudence
Live MintThey underline fiscal rectitude, continuation of the great Indian build-out and abstinence from a consumption-driven steroidal push. The first advance estimate from the National Statistical Office has pegged India’s gross domestic product growth at a better-than-expected 7.3% for the current fiscal, in line with the strong economic performance reflected in the high-frequency data. In the milieu, budgetary capex is estimated to grow at a healthy pace next fiscal, albeit at a slower pace compared with 21.5% in the current one. The impact of a slowing global economy and the lagged impact of high interest rates will moderate growth next fiscal. Crisil’s healthy growth projection for the medium term reflects pragmatic policy choices made by the NDA government.