LyrArc Article Gist
Steps the Modi government in India is taking in the 2020 Budget to tackle slowing growth include relaxing the fiscal deficit target from 3% to 3.5% of GDO, selling public sector companies to generate more funds, so that additional investment can be done in infrastructure, rural development, education and health care. Growth of the economy is expected to drop to 5% for the fiscal year ending March 31, 2020. 

A weak banking sector with sharp decline in credit, and decline in the auto sales by 20%, have worsened the decline in growth. 

Ms. Nirmala Sitharaman, the Finance Minister, said that this budget is designed to "boost Indian incomes, and enhance their purchasing power."

The Indian slowdown comes in the middle of a global slowdown, with China's growth expected to be 4.9% in the first quarter of 2020. Growth was further weakened after the effects of the coronavirus lockdown on parts of China, disruption of supply chains, partial closure of businesses.