At a single stroke, 70 million taxpayers have been wholly unburdened by the budget and the middle class has seen a substantial increase in its post-tax income. This will spur a consumption boom, pushing India’s GDP to an 8% range.
Companies with above Rs 500 crore PBT have seen their effective tax rate decline in 2022-23 compared to those in the Rs 50-500 crore PBT range
‘Freebies’ are a counter to the conventional mobilization around caste blocs, which upended national politics after the release of Mandal Commission report. However, freebies raise questions about fiscal sustainability and the trade-offs involved for economic performance. As Delhi continues to set a precedent, the debate over the merits and demerits of freebies versus caste politics is likely to shape the future of Indian democracy
On a forward PE basis Nifty 50 stocks are around 20 times now, with the long-term mean at 17.2 times and one standard deviation above the mean is at 21.7 times.
Significant investments are planned to promote AI research, establish centres of excellence, and integrate AI across sectors like agriculture, healthcare, and manufacturing
The government has sought to address the credit needs of the lower segments of the population and possibly the still unbanked category
Behind the success of Chinese scientists and tech companies, there is a well-organised educational and support system to foster the growth of scientific and technological talent
The best course is to stay invested to reap the benefits of a consumption boost
Canada, Mexico and China will feel the heat from Trump’s tariff war, but the US will not be left unscathed either, in a conflict that threatens to envelop the world
The share of GDP the government takes in taxes out of total income is expected to go up. That in turn means the share available for households for consumption or saving or investment is slightly lower than what it is in the current fiscal year
Budget for FY26 tries to offset a decline in expenditure as a share of GDP by focussing on quality of spending and deficits. However, the path of fiscal consolidation outlined in terms of debt-to-GDP ratio will not be easy
The budget identifies trade as an engine of growth. That engine is likely to stall, under the assault on global trade that the newly elected US president Donald Trump is rolling out. India would need to make other engines tick.
The primary structural problem of salaries and pension squeezing fiscal space for capital acquisition remains. However, the pattern of allocation on armaments sends a clear signal that the domestic industrial complex is prioritised and will be encouraged
Budget marks a significant shift from a qualitative goal to a specific, measurable target to 50 per cent by 2031. Since 2013, India's average central government debt-to-GDP ratio has been 49.03 per cent. The USA’s central government debt-to-GDP ratio has remained above 100 per cent since 2020, as also Japan’s, Italy’s and UK’s (barring 2022, when it was marginally lower)
The Union Budget 2025 focuses on stimulating private consumption in both urban and rural India. By revising tax slabs, increasing rural support, and boosting agriculture and food processing industries, it aims to enhance growth, consumption, and farmer incomes
The 2025 budget prioritises fiscal prudence, consumption, job creation, and self-reliance, with key focus on MSMEs, agriculture, healthcare, and manufacturing. It offers tax relief for the middle class, boosts infrastructure, and simplifies business processes to attract multinationals
Budget focusing on achieving the Viksit status: Consequently, along with an anticipated 50-75 bps cut in the repo rate by the RBI in FY26, Indranil Pan see the 10-year G-sec yield in a range of 6.30-6.50% in FY26.
The FY2025-26 Union Budget presents a clear path toward consumption-driven growth, supported by strategic sectoral measures, continued fiscal discipline, and targeted investments in infrastructure, energy, and healthcare.
In addition, Sachin Gupta sees this budget focusing on three key areas – Ease of Doing Business (EODB), focus on labour-intensive sectors and continued focus on infrastructure investment.
From the market perspective, it is a positive budget which seeks to boost consumption and inclusive growth while maintaining fiscal discipline.
The Union Budget reflects the government’s consistent focus over the past few years, with no major surprises in its fiscal framework.
Overall, it was a very well-balanced budget and addressed all the pain points in the economy.
A new income tax bill to be introduced next week which will reduce the tax code by 50% and make it simpler and easier for everyone to understand and implement is another welcome move.
This Budget has focused on reviving consumption while maintaining fiscal stability, crucial for enabling lower interest rates. A significant move is the tax relief for the middle class, which is expected to boost disposable income and consumer confidence.
The successful implementation of the outlined initiatives in infrastructure and projects will be crucial in achieving the desired outcomes
