Budget 2020: HSBC’s Pranjul Bhandari Sees Growth Stimulus If Divestment Target Is Met
India’s economic growth may rise in the next fiscal if the government’s “ambitious” asset sale programmes are achieved, according to Pranjul Bhandari.
“There could be a positive growth stimulus of 0.4 percent of GDP if the asset sales work out and because of that the capex plans happen,” Bhandari, the chief India economist at HSBC, told BloombergQuint in an interview. “The capex push is admirable and there is 18 percent year-on-year growth spread across telecom, roads, ports and railways.”
The rapid increase in import duties could, however, hurt the country’s export competitiveness in the medium term, she said, adding that the fiscal situation was a bit uncertain as reliance on non-tax receipts hit an all-time high and food subsidies were still being off-budget.
Watch | ‘Will Asset Sales Be Done’ Is The Big Question Mark, Says HSBC’s Bhandari