India’s stimulus gets muted response from investors

This handout photograph taken on February 5, 2025 and released by the Indian Press Information Bureau (PIB) shows India's Prime Minister Narendra Modi offering prayers before taking a holy dip in the sacred waters of Sangam, the confluence of Ganges, Yamuna and mythical Saraswati rivers during Maha Kumbh Mela festival, in Prayagraj. - Photo: AFP

NEW DELHI: Prime Minister Narendra Modi is counting on a two-pronged stimulus of tax and interest rate cuts to turn around India’s slowing economy, but investors may need more convincing that the measures will be enough.

The decision by India’s central bank last Friday to reduce its key rate for the first time in five years comes less than a week after Modi’s government unveiled historic tax cuts in its federal budget.