Different indicators are now signalling that the worst phase of economic slowdown in Indian economy is possibly over. These indicators are either getting stable or stronger in comparison to previous period. However, these are still very weak to give strong indications about reversal in the trend. There is need for more confirmatory signals before hitting at any conclusion.
There had been a lot of expectations from the Budget 2020 from all the sectors. Budget 2020 has however been partly successful in satisfying most of the demands and addressing some important issues relating to falling demand in rural economy as well as bottleneck in warehousing and cold storage in agriculture (all depends on the execution than just proposal of the budget). Though, the corporate sector has not taken the budget that well with Sensex tanking by around 1000 points on budget day.
A day before the budget, the Economic Survey 2019-20 had pegged GDP growth rate for the fiscal year 2020-21 at 6-6.5%. This looks achievable considering the advanced estimates of GDP growth rate at 5% for current fiscal year. However, the budget has projected the GDP growth rate (nominal) at 10.5% and fiscal deficit at 3.8% for fiscal year 2020-21 which is not very ambitious considering the constraints.
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