Top Economists Decode Govt Spending Shift & Rising Consumption Trends | GDP Analysis

In this discussion, economists Sunil Sinha and Rumki Majumdar delve into the trends surrounding India’s government expenditure, capital outlay, and rising per capita consumption. They examine the government's strategic shift from revenue to capital expenditure, its efforts to rein in the fiscal deficit, and the implications of negative growth in the current quarter. The conversation highlights how a significant increase in per capita consumption—from 4.6% in FY23–24 to 6.2% in FY24–25—signals India’s growing reliance on domestic demand amidst global economic uncertainty. This analysis provides valuable context on how fiscal policy and consumption patterns are shaping India’s economic resilience