Union Budget 2019 laid down good platform for sustainable economic growth: Acuite Ratings

New Delhi: Acuite Ratings Research Limited, a full-service credit rating agency on Monday said that the Union Budget 2019 has laid down a good platform for sustainable economic growth and financial stability over the medium to long term.

“It however remains to be seen whether the immediate risks to short term growth can be addressed through such measures; also, effective implementation will be the key to the realization of the government’s vision of a USD 5 trillion Indian economy by FY2024,” the rating agency said.

Finance Minister Nirmala Sitharaman in her maiden Budget address laid out a clear road map to make India a $5 trillion economy by 2024.

“While India’s GDP is expected to reach the milestone of USD 3 trillion in FY20, the growth rate has slipped to 6.8 percent in FY19 and there are risks of a continuing slowdown. The government aspires to reach the milestone of $5 trillion GDP by FY24. Clearly, such growth targets need to be driven by a high level of investment with focus on channeling both domestic as well as foreign capital into infrastructure spending which is projected to be of the order of Rs. 20 lakh Cr annually over the next five-year period,” the rating agency said.

Acuite Ratings also lauded the announcement of Rs 70,000 crore of capital infusion in public sector banks in the Budget announcement

“It reflects the continuing commitment of the government towards their revival along with plans for consolidation and reforms,” the agency said.