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Opinion

India's budget needs short sharp shocks to stimulate economy

Long-term measures will not revive consumer demand as GDP heads toward recession

| India
This is an emergency situation as Indian economy is slipping toward recession.   © NurPhoto/Getty Images

When India's Finance Minister, Nirmala Sitharaman, presents the federal budget on February 1, she will confront a country mired in a severe demand slowdown and will be expected to devise concrete policy responses to ramp up economic activity and boost sentiment.

But while economists and experts are giving her long-term supply-side prescriptions to boost productivity and efficiency, what New Delhi really needs are short-term fixes to revive consumer demand. Only that will prompt the private sector to kick-start investment and support economic growth.

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