Worried over a slowdown in the economy, Prime Minister Narendra Modi’s government is expected to soon announce measures to revive growth that decelerated to a three-year low of 5.7% in the quarter ended-September. He has refused to divulge details which he said would be unveiled only after consultation with Modi. But ramping up government spending, at a time of subdued tax- collections and sluggish economic growth have strained federal revenues, could widen the fiscal deficit beyond the targeted 3.2% of GDP. One option is to spend enough to pump up the economy the way the previous UPA government did to face down the 2008 global slowdown. An education boom would bring huge returns for the entire Indian economy, says Basu.

Source: Hindustan Times September 21, 2017 08:15 UTC