Indian Finance Minister Arun Jaitley is set to present the federal budget on Wednesday, when the government will reveal its plans to steer the economy out of a self-inflicted slowdown.
New Delhi’s move in November to crack down on corruption and tax avoidance by voiding 86% of high-value bank notes slammed the brakes on economic activity and threatens to snatch away India’s coveted position as the world’s fastest-growing big economy.
To retain its position, India will need to spend and encourage more investment. The government may feel pressure to introduce policies aimed at easing the hardships of India’s poor, who have been worst hit by the cash crunch, just days ahead of crucial state elections. Mr. Jaitley’s hand, however, will be constrained by the government’s tight purse strings.
Here are five things to watch out for in the budget for Asia’s third-largest economy:
