Analysts Cautious on Economic Boost From India's New Digital Wallet Scheme
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Analysts question whether the digital wallet scheme will provide much economic stimulus, saying it may pose fiscal risks.
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The policy is expected to increase growth by 0.5% and add 1-2 percentage points to GDP but also increase public debt.
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High public debt could limit government's ability to provide fiscal stimulus in the future.
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The handouts may face roadblocks like unaddressed competitiveness issues and uncertain multiplier effects.
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Analysts want to see the final conditions of the scheme before fully evaluating its impact.