RaboResearch - Economic Research

Economic Comment

India: what is the economic impact of the new stimulus package?

The announced stimulus package in October will support the ailing banking sector, but we expect limited additional effects on economic growth of India (of 0.2ppts in fiscal year 2018/2019). Moreover, it is a missed opportunity that the package does not contain measures to foster total factor productivity growth.

Economic Comment

India’s budget wins little applause

The budget for India’s fiscal year 2012/13 aims to reduce the fiscal deficit to 5.1% of GDP from 5.9% of GDP this year. With a rise in tax revenue and a more realistic growth assumption, next year’s budget seems more in reach than this year.