The budget not only allay fears of populist measures, but reaffirms the government’s focus on infrastructure development and the commitment to follow the path of fiscal consolidation
The interim budget has used a positive economic backdrop to strengthen the long-term growth impulses provided by public investments, build back fiscal buffers to counter future shocks and aims to put public debt on a downward path to free up space for productive spending
Who will actually give these loans? What are the sunrise sectors? What kind of entrepreneurs and companies will qualify?
The commitment to rooftop solarisation, providing 300 units of free electricity monthly to 1 crore households, is a groundbreaking move. Beyond the evident cost savings for citizens, this initiative aligns seamlessly with country's efforts to reduce emission intensity and achieve net-zero emissions.
While the start-up ecosystem will be disappointed at the lack of tax-related incentives to encourage domestic investment, they can take heart from the budget’s encouragement of entrepreneurship
Development of infrastructure network, by way of roads, dedicated freight corridors, railway stations, etc will boost demand for housing in Tier 2 and 3 cities
Empowering the marginalized sections of society has been a focal point of this Budget. By targeting the upliftment of the poor, women, youth, and farmers, the government is addressing the roots of socio-economic disparities.
Lower government borrowing, combined with the Indian bond market’s inclusion in global bond indices will lead to strong inflows into India, generating funds to build long term infrastructure projects that boost the GDP, provide employment and keeps the INR stable
The government has retained its focus on infrastructure creation but the real action for companies is after a new government is elected
What are the signals from the Interim Budget? What strategy does the government have in pruning the fiscal deficit? Why is the onus on the private sector now?
The focus is on directing more institutional credit and implementation of the key government schemes
Banks will struggle with slower credit growth while corporate bonds are set to become more attractive
The soft assumptions on gross domestic product (GDP) growth, tax growth and revenues gives the economic numbers far more legitimacy than was expected
In a speech lasting less than an hour – the shortest in recent memory – the FM unambiguously showcased her government’s confidence in returning to power in the general election based on its track record and not promises of freebies. In 2019, the BJP-led NDA was on the backfoot and was forced to announce a quarterly stipend for farmers and direct tax concessions for the lower middle class
Market interest in the budget has been low since it was an interim one, and it was proved right. Attention will now shift to global events such as the Fed’s interest rate cuts and geopolitics while the next domestic trigger could be elections
Private sector innovation in sunrise sectors will be greatly facilitated by allowing them greater access to grants. Private sector research requires long term patient capital. Funding models such as permanent capital vehicles have been established globally. Innovation ecosystems require such frameworks in order to be able to invest resources
A lower deficit automatically translates into a lower supply of bonds from the government. Indeed, the gross borrowing of the government is pegged at Rs 14.13 lakh crore, lower than Rs 15.43 lakh crore for FY24.
Focus on deep tech investments in defence and a Rs 1 lakh crore corpus for tech-savvy youngsters to fuel their startup dreams are the most prominent digital economy-related announcements. A disclosure on the progress of announcements relating to AI and DPI made in last year’s budget would have helped
Hopes that the government could put more money in the hands of low-income consumers were not realised. Demand recovery is likely to remain gradual
India’s banks are the biggest investors in the government’s bond issuance every year and they hold a little over 37 percent of outstanding government bonds
There were no big, populist measures with an eye on polls. The intent to upgrade passenger train bogeys to Vande Bharat standards and creation of a Rs 1 lakh crore corpus with 50-year interest-free loans for tech savvy youth were among the most exciting parts of an otherwise boring budget
The commitment to reaching the 4.5 percent fiscal deficit target is commendable. The outlay for capex will shore up the growth momentum. The Interim Budget has served as a platform to highlight the outgoing government's achievements and present a glorious vision for its next term. Nirmala Sitharaman did not disappoint on either count
The Interim Budget demonstrates the government’s commitment to strengthening infrastructure, pursuing the green transition and laying out a clear roadmap for the future. Its continued fiscal prudence even in an election year suggests a firm resolve for achieving Viksit Bharat by 2047
For agriculture, there were no surprises like the PM-Kisan scheme of 2019. The FM rightly took the credit for handsome hikes in the Minimum Support Prices and proactive management of food inflation. Introduction of Nano DAP fertilisers is welcome but Nano Urea effectiveness needs a review. Improving fisheries productivity is good news
FM Sitharaman walks the talk on fiscal discipline. The finance minister has put the accent on the hour hand of the clock by looking ahead a quarter century hence (2047) and free-up policymaking mindspace from annual financial calendars
