WER

INSHJK

Prime Minister Narendra Modi's second

budget in seven months disappointed

investors who were hoping for big-bang

stimulus to revive growth in Asia's

third-largest economy. The fiscal plan

delivered by Finance Minister Nirmala

Sitharaman proposed tax reductions for

individuals and wider deficit targets, but failed

to provide specific steps to fix a struggling

financial sector, improve infrastructure and

create jobs. Stocks slumped, reflecting the

subdued sentiment.

Income tax cuts will provide some relief on

the consumption front, the multiplier effect is

low and the overall stance of the budget is not

expansionary."

The focus now shifts to the Reserve Bank of

India's interest rate decision on February 6,

2020. However, having already cut interest

rates five times last year and with inflation

exceeding 7 per cent, well above the central

bank's target, there's limited scope for

Governor Shaktikanta Das to ease more