Modi Turns to Old Tricks as Cash Experiment Hurts India GDP
- Increases expenditure on rural jobs program he’d once mocked
- Consumer price in November falls to lowest level in two years
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With indicators revealing a difficult end to Prime Minister Narendra Modi’s unprecedented cash clampdown, he’s turning to time-tested methods to cushion India’s economy.
Lawmakers last week cleared about 600 billion rupees ($9 billion) in additional spending for the year through March, which includes a 10 percent increase in a rural jobs program Modi once mocked. Recent growth has been slower than estimated and inflation slumped below the central bank’s target as Modi’s move dents demand.