Economists urge gradual consolidation, see fiscal deficit near 6% in FY23

They believe focus on reviving informal sector activity, particularly construction, is key to reviving GDP and jobs

Global observers of the Indian economy felt a quick consolidation in India’s fiscal policy may not be the right way to go ahead, and that only a gradual path must be embarked on to ensure growth inches above expectations. 

While they agreed on buoyant revenue and pace of recovery cranking up growth, they held that reviving lost jobs could be complicated, and will require concerted efforts in areas that need support, particularly the construction sector. 

They were on a panel that discussed the future of India’s fiscal and monetary policy and its implications on growth, at a conference organised by the Confederation