Opportunities and choices in the Budget

Fiscal consolidation is needed if India is to seek sustainable private sector-led growth

With relatively higher economic growth and lower inflation than most G20 countries in 2022, India has weathered the global shocks comparatively well. Its fiscal and current account deficits remain high, but its substantial reserve holdings and calibrated exchange rate policy have allowed it to manage the large financial outflows.  In financial year 2022-23, India should see growth above 6.5 per cent, and inflation now below 6 per cent would be the envy of many.
 
With the US and Europe headed for a recession, induced by tight monetary policies needed to fight rampant inflation, and with China suffering due to