• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Budget 2019: Expect measures to uplift domestic demand

By Anuj Cariappa
|

New Delhi, June 29: The government is expected to initiate measures like uplifting domestic demand, addressing issues in strategic sectors like aviation and power in the upcoming budget to support domestic growth momentum, says a report.

According to Dun & Bradstreet's Economy Forecast, the moderation in domestic growth momentum has increased expectations that the government will initiate measures in the Union Budget 2019-20 to support growth.

Budget 2019: Expect measures to uplift domestic demand

As the world is witnessing synchronised slowdown on the economic front, it would not be an easy task for the government to uplift domestic growth, Dun & Bradstreet India Chief Economist Arun Singh said.

"It would be thus crucial to identify the growth centres and prioritise the flow of funds given the funding constraints faced by both the government and the private sector," Singh added.

In the last fiscal, Indian economy grew at a 5-year low pace of 6.8%.

The report noted that the government is likely to take measures to uplift domestic demand, to resolve issues in strategic sectors like aviation, power and non-banking financial companies, to boost investment demand as new investment from private sector has not picked up.

Moreover, the government also has to address its fiscal constraints.

Budget 2019: In Sitharaman's 5-year road map, is there any hope for tax exemption limit hike?

D&B expects growth in Index of Industrial Production (IIP) to remain subdued given the slowdown in demand, both in urban and rural segments and lack of new investment from the private sector.

According to D&B, IIP is likely to have grown by 3-3.5 per cent during May 2019.

On prices front, the reversal in food prices is expected to provide upward pressure to inflation, while moderation in demand and low crude oil prices are likely to keep it subdued, the report said.

D&B expects CPI inflation to be in the range of 3-3.2 per cent and WPI inflation in the range of 2.2-2.4 per cent during June 2019.

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more