Will roads and banks stimulus revive the Indian economy?
While the PSU bank recapitalisation plan and road construction push are necessary, they are not silver bullets
The slowdown in the economy has led to a fierce debate in the public domain. For some time, the government was in denial mode. However, amid mounting concerns, the Union ministry of finance seems to have recognized that there is a problem. At a press conference in late October, it announced a package of Rs9 trillion, made up of government investment in roads and recapitalisation of public sector banks—the largest so far, even if some of it is old wine in new bottles—to revive economic growth.