Investors will be paying close attention to India's budget.
So will voters.
As India unveils its interim budget on Friday, Prime Minister Narendra Modi and his party will likely dole out handouts to attract voters ahead of the general election that's due to be called by May. The main planks of India's budget will likely include: A farm sector relief package to attract the crucial farmers' vote, tax cuts and support for badly hit small and medium businesses.
The ruling Bharatiya Janata Party's (BJP) suffered a stinging election defeat in December, losing three key states to the opposition party. The budget is all the more crucial now as it marks the last major chance for the BJP to consolidate support from its voter base, pointed out Rajiv Biswas, Asia Pacific chief economist at IHS Markit.