Royston Carr Asset Management analysts say government spending may be necessary to help boost India's economy
Online PR News – 16-July-2019 – Taipei, Taiwan – With India's economy facing tough times with significant challenges ahead, analysts at Royston Carr Asset Management say the newly-appointed finance minister will need to find creative ways to help boost the economy. India's economy has been slowing in recent months with consumers scaling back on consumption and the unemployment rate on the rise. Trade tensions between the US and China are also being felt in India and many local banks are facing liquidity problems.
Nirmala Sithamaran, India's minister of finance will likely resort to a range of measures designed to help boost consumption and stimulate growth. Private investments are lackluster at present and Royston Carr Asset Management analysts say most of the onus will fall on the government to increase spending in this climate.
Royston Carr Asset Management analysts say it is hoped that increased spending from India's government will help to offset the subdued input from the private sector.
In the first quarter of this year, India's economy grew at 5.8%, its slowest rate of growth since 2014. Various credit agencies have downgraded their growth forecasts for India's economy for this year.
And while increased government spending may help to stimulate the slowing economy, Royston Carr Asset Management analysts say the government may not have enough room to offer such fiscal support. Tax revenues have missed their targets in recent months, leaving the government with a limited ability to introduce easing measures.