Modi’s infrastructure splurge |
Prime Minister Narendra Modi`s bet on higher public spending to spur economic activity in India has started paying off, as capital investment shows signs of sustained revival after years of uneven growth. But corporate spending is still tepid and federal revenues remain stressed, raising the risk of another false dawn for Asia`s third largest economy as it tries to recover momentum. Annual growth in capital goods production has hit a 14-month high of 22 per cent in August. That helped overall industrial output expand at its fastestpace in almost three years.
|
|
|
|