India to Increase Public Spending and Tax Rich in 2013

India’s finance minister has announced an unexpected rise in public spending for the next financial year in an attempt to revive its sluggish economy.

However, he vowed to cut the country’s deficit as he unveiled new taxes on the super rich as well as large businesses.

P Chidambaram said that increased foreign investment was key to reviving growth in India’s economy.

The budget comes at a time when India’s growth rate has slowed, hurt by both global and domestic factors.

Asia’s third-largest economy is projected to grow by 5% in the current financial year, far below the 7.6% growth projected in last year’s budget.

In his budget speech, Mr Chidambaram said that while restoring India’s potential growth remained a challenge, “there is no room for gloom and pessimism”.

He argued that China and Indonesia were the only Asian nations that were growing faster than India, and that achieving a high growth rate was “not beyond India’s capacity”.

“We have done it and we will do it again,” he said.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza