India's Budget 2024: A Balancing Act Amidst Economic Challenges

Prime Minister Narendra Modi's first full budget of his third term focused on middle-class tax cuts rather than sweeping reforms, causing disappointment among analysts concerned about India's slowing growth. The budget also reduced emphasis on capital spending, raising concerns about long-term economic prospects.

India's latest budget announcement under Prime Minister Narendra Modi's leadership has sparked widespread debate. As the first full budget of his third term, it was expected to chart a bold course for the nation. Instead, it leaned toward providing short-term economic relief via tax cuts for the middle class, leaving significant reforms by the wayside.

While the budget aimed to ease the financial strain on urban consumers, experts argue that more significant changes are needed to restore high growth rates and sustain job creation. Forecasting a GDP growth drop to 6.4%, analysts have expressed concern over the lack of a clear path to India once-envied growth of over 8%.

The approach, compounded by reversed agricultural trade policies to benefit farmers and increased cash handouts, highlights the government's shift towards appeasing key political constituencies rather than pursuing aggressive economic reforms. Analysts noted previous opportunities missed, hinting at potential economic stagnation if bold steps are not taken soon.

(With inputs from agencies.)