Protests could be a mixed blessing for economy

The direct economic impact of the protests that began in opposition to the citizenship amendment bill is likely to be small. However, the protests have increased the chances of a larger fiscal stimulus in next month’s union budget, which would be positive for growth in the near term. On the downside, the controversy surrounding the citizenship bill – as well as the pursuit of such populist policies in the first place – appears to be causing attention on economic policymaking to slip.