Finance Minister Nirmala Sitharaman is likely to announce measures to revive infrastructure and real estate in the Union Budget 2020 that is set to be presented shortly, according to Arvind Sanger of Geosphere Capital Management.
Sitharaman is set to present the Union Budget 2020 today amid concerns over a massive economic slowdown, high unemployment, declining savings and a slump in consumption.
Sanger said that given the lack of fiscal space, there are no easy solutions.
“The conflicting advice that the government is getting is - on the one hand, spend more on helping the bottom of the pyramid because if you increase more budgetary allocations to them, they are going to go out and spend and that will help the economy, on the other hand, the infrastructure and real estate are sectors which are in serious need of revival as that can jump-start a virtuous cycle. I am more of the opinion of the latter rather than the former," said Sanger.
Sanger further added that increasing productivity is an important point to spur growth. “Increasing productivity which is one of the easy ways for India to generate growth is important and increasing productivity involves both investments in infrastructure and providing incentives for companies to invest in productivity enhancement,” he said.
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