If Narendra Modi tackles India’s bad loan problem—and tweaks legislation to enable bureaucrats to approve projects without fear of being caught up in corruption—then private sector capital expenditures could increase, as well, said a Deutsche Bank analyst. Photo: HTNew Delhi: History suggests India’s government is about to embark on a spending spree. A Deutsche Bank analysis shows government spending picks up in the last two years of an Indian government’s five-year term. “Governments need to show that things are happening, that jobs are being created,” Deutsche Bank analyst Abhay Laijawala said in an interview. However, India’s implementation of a nationwide goods and services tax (GST) starting in July could cause some near-term economic disruption, he added.

Source: Mint May 03, 2017 03:22 UTC