Macquarie expects India to increase welfare spending to boost consumption
Sandeep Bhatia, Head of Equity- India & Country Head-India at Macquarie Group predicts a significant increase in welfare spending by the Indian government.
Sandeep Bhatia, Head of Equity and Country Head in India at Macquarie Group forecasts a significant uptick in welfare spending by the Indian government to bolster consumer activity.
Bhatia's views align with the recommendations of the Indian Council for Research on International Economic Relations (ICRIER) on policy revisions and increased financial aid for farmers. In its October report, ICRIER proposed an elevation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme instalment limit from the existing ₹6,000 to ₹10,000 per family. The report underscored the necessity of this hike to counteract losses incurred by farmers due to restrictive marketing policies.
Also Read
The government also recently announced the extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) until December 2028. This initiative, declared on November 29, ensures the continued distribution of free food grains to approximately 80 crore impoverished individuals nationwide.
Also Read | India extends free ration scheme till Dec 2028: Check eligibility of PM Garib Kalyan Anna Yojana
Union Minister Anurag Thakur disclosed that this extension would incur a cost of ₹11.8 lakh crore on the exchequer, with implementation scheduled to commence from January 1, 2024. The decision received approval during a Cabinet meeting chaired by Prime Minister Narendra Modi on November 28.
Discussing government expenditures, Bhatia highlighted the effective delivery of subsidies as a key factor contributing to the ongoing success of the current government. He suggested that the government's commitment to subsidies and related initiatives is more likely to continue post-elections than pre-elections.
Bhatia emphasised the broader theme of consumption revival and expressed intentions to monitor it in the lead-up to the elections.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM
Lok Sabha Election 2024 — how regional parties are challenging national giants in Phase-4
May 15, 2024 6:17 AM
Supreme Court refuses plea seeking 6-year poll ban on PM
May 14, 2024 7:14 PM