Indians to Enjoy Abundance of Jobs and Substantial Public Spending: Deutsche Bank

A Deutsche Bank’s analysis shows that the Indian political history follows a pattern- the public spending is increased considerably during the last two years of the government’s five-year term. Since Prime Minister Narendra Modi’s government is exactly at that point now (with the next elections due in 2019), it is expected that the history will repeat itself and the government will take all sorts of measures to show that it’s working towards creating jobs for the voters. Since stagnant job growth is a major risk for India, especially in the world economy, Modi is likely to promote job creation at the time of elections.

Abhay Laijawala, a Deutsche Bank analyst, said that the government has to show that they are creating jobs for the people. If Modi is able to deal with the increasing bad loan problem in the country and reforms the legislation so that bureaucrats can approve projects with ease, the capital expenditures in the private sector could also increase.