While Narendra Modi took oath as the Prime Minister of India for the third con- secutive time, all eyes will be on the newly formed government’s next moves, particularly the upcoming Union Budget and the 100-Day Action Plan which had been discussed before announcement of the 2024 LS election schedule.
Industry leaders are confident that under Modi 3.0, India would continue its economic transformation. It is interesting to see that the new government has already swung into action with the Prime Minister already urging the 71 ministers of the new coalition government to finalize their 100-Day Action Plan presentation. According to media reports, the plan is already ready and will soon be presented before the PMO and then the Union Council of Ministers.
The upcoming full Budget is expected to be presented in the middle of July and economy watchers are eagerly waiting for it. While some sceptics point out that with the coalition government liming the scope of major reforms, the Budget may instead prioritize populist measures and rural spending, a section of experts are optimistic about ambitious growth agenda of Modi 3.0.
Meanwhile, the RBI last week left the repo rate unchanged at 6.5 percent in its effort to balance economic growth and inflation. The decision seems wise as the central bank is concerned about the lingering CPI inflation, but it is pointed by some that the central bank could have changed the stance to neutral to signal a rate cut which is crucial for stimulating private consumption and investment.
