Modi's budget - India's chance to fly
Modi's budget - India's chance to fly. This story hasn't gained a lot of airtime in the domestic press but in my view is worth keeping an eye on. The Modi Governement has pledged to increase infrastructure spending by US$11.35 billion, infrastructure will now constitute about 14% of the Indian government's total spending, compared to 11% last year. That is more money towards airports, roads and railways. The other significant point is the relaxing of a number of rulings around foreign investment. Quartz reports that last year India's foreign direct investment inflows grew 26% in 2014 reaching $35 billion. Further relaxing of legislation announced in this budget is aimed at increasing this number. Interestingly, the plans announced by India place it as one of the few countries willing to look away from it's fiscal deficit in an attempt to spark growth via investment. Detailed coverage via Quartz: qz.com/353286/no-big-bang-but-narendra-modis-budget-does-pack-enough-fire-power/
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