New Delhi sources have reported that Prime Minister Narendra Modi's government will be trying to woo back rural voters and small businesses when it announces the 2018/19 budget on Thursday and pick up economic momentum as it heads into a season of elections. Meanwhile the officials said extolling India as a model of economic growth and political openness, PM Modi told the World Economic Forum in Davos last week the country would be a USD 5 trillion economy by 2025, more than double its current size.
Previously PM Modi's ruling alliance managed a narrow election victory in his home state of Gujarat last month and is now faced with elections in eight states spread over 2018 and a general election that must be held by May next year.
Meanwhile Jaitley is also expected to stay the course on a massive plan to build highways, modernise the railways and end infrastructure bottlenecks that have long hobbled Asia's third largest economy. Furthermore India's growth should pick up to 7.4% in 2018 as against China's 6.6% the IMF said this month, as the twin effects from the tax reform and demonetization wear off.
