India Seeks to Shrink Budget Deficit as Global Headwinds Loom

India wants to narrow its budget deficit by at least 50 basis points, according to people familiar with the matter, as authorities balance global investor scrutiny with the need for higher spending as the nation enters an election year.

Finance Minister Nirmala Sitharaman will seek to shrink the shortfall to less than 6% of gross domestic product in the year starting April 1, the people said, asking not to be identified as the deliberations are private. Her presentation due Feb. 1 will be the final full-year budget before citizens elect their new prime minister in the summer of 2024, a time when Indian governments typically loosen the purse strings.