Investment demand can pick up with supply-side moves

The Union budget should provide more comfort on the longer-term growth prospects of India, which will be the key to the Indian equity market in the medium term.The market’s focus will shift to India’s medium-term growth prospects beyond the strong 9-11% real GDP growth in FY22. India’s GDP growth had slowed down significantly even before the Covid-19 pandemic with 4.5% GDP growth in 1Q-3QFY20, pulled down by a sharp decline in investments.