Capex for revival

Govt has done well to increase expenditure

The biggest challenge for Indian policymakers at the moment is to lead the economy to a higher sustainable growth path. Although output has surpassed the pre-pandemic level, the disruption caused by the pandemic over the past two years would affect economic outcomes for quite some time. Besides, slowing global growth and higher inflation would affect economic recovery. As output contracted because of pandemic-related shutdowns, governments across the world, including in India, increased expenditure. Higher government expenditure on asset creation has helped at a time when private-sector demand remains weak. The government intends to follow this path to strengthen the recovery.