India to boost spending with near-record debt

Big gain: Workers in a production line making suitcase frames in a workshop in the Dharavi area of Mumbai. India’s manufacturing sector is seen emerging as the biggest beneficiary of the impending budget. — Bloomberg

MUMBAI: India, which is set to regain the world’s fastest-growing major economy title, will likely prioritise growth over fiscal consolidation by boosting spending, according to economists surveyed ahead of the presentation of the nation’s federal budget.

Finance Minister Nirmala Sitharaman will probably increase the budget by about 14% year-on-year to 39.6 trillion rupees (US$527bil or RM2.20 trillion) in the fiscal year beginning April, according to the median of estimates compiled by Bloomberg.