India's Economy Likely Rebounds in Q4 as Government Spending Pushes Growth
India's economy is expected to have rebounded last quarter, expanding 6.3%, driven by increased government spending that helped offset weak household demand, according to a Reuters poll of economists who forecast relatively modest growth ahead. The national election in April-June last year forced the government to curb infrastructure spending, which dragged growth down to 5.4% in July-September. Since then, foreign investors have withdrawn billions of dollars from the equity market, leaving doubts about the economy's ability to sustain momentum without continued support from New Delhi.
- The reliance on policy-driven growth raises questions about India's economic resilience and its ability to withstand external shocks.
- How will the government's strategy to stimulate private investment through corporate tax cuts and infrastructure spending impact the creation of well-paying jobs and broader economic gains in the long term?