India: Modi hints at a prudent budget – Nomura

In an interview with TV channel Times Now, Prime Minister Modi made a number of important remarks ahead of his Davos trip, points out Sonal Varma, Research Analyst at Nomura.

Key Quotes

“No populism in upcoming Budget: When asked if the upcoming budget would be populist, Mr Modi stated that the budget was the prerogative of the finance minister, but he believed that the common man does not expect “freebies and sops”. The government’s focus will be to fulfil the common man’s needs and aspirations. In a separate interview to Zee News, he said that the government’s only agenda for the budget is development.”

“Farm distress is a concern: Mr Modi acknowledged that farm distress was a concern and that it was the joint responsibility of both the central and state governments to identify the issues and resolve them. He said that schemes like crop insurance, irrigation, soil health cards and increased urea availability were aimed at addressing farm distress. Looking ahead, his priority is to make solar pumps available, increase agro-product processing, and focus more on rural and agro-based industries.”

“Simultaneous election: He reiterated his call to hold simultaneous national (Lok Sabha) and state assembly elections as frequent elections waste funds.”

“Priorities ahead: Mr Modi said that the government would stay the course on reforms. Through the rest of his tenure, his priority is to provide electricity to all families who still do not have it, and complete schemes started for the benefit of the common man.”