Finance minister Nirmala Sitharaman has used the comfort of today’s macro numbers to prepare ground for the future. Working within tight fiscal limits, the budget focuses on building capabilities and resilience. Yet, we must watch for growth risks, inflation surprises and the rising cost of capital.
Finance minister Nirmala Sitharaman has used the comfort of today's macro numbers to prepare ground for the future. Working within tight fiscal limits, the budget focuses on building capabilities and resilience. Yet, we must watch for growth risks, inflation surprises and the rising cost of capital.
The macroeconomic numbers for India's economy would be the envy of others. Quarterly growth has been showing steady upward momentum and inflation is ruling at remarkably low levels. The corporate sector's balance sheet is healthy, having deleveraged substantially, and profitability has been quite good for the past several years. The banking sector too has been showing good profits and very low bad-loan ratios.