Interim Budget 2024 lays out a long-term road map
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
Higher infra allocation in interim Budget fails to satiate investors
The government has retained its focus on infrastructure creation but the real action for companies is after a new government is elected
Seven key takeaways from the Interim Budget 2024
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?
Agriculture retains government's attention in Budget despite stable allocations
The focus is on directing more institutional credit and implementation of the key government schemes
Finance Sector and Budget: A season of stark contrasts for banks and corporate bonds
Banks will struggle with slower credit growth while corporate bonds are set to become more attractive
Signalling continuity of reforms in Budget should give investors comfort
The soft assumptions on gross domestic product (GDP) growth, tax growth and revenues gives the economic numbers far more legitimacy than was expected
What Budget 2024 says about the rewiring of India
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
Stock markets will shift focus to global events, as the interim budget stuck to the script
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
FM's clarion call to 'Focus on the outcome, not the outlay' and the challenge of access to capital
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
Cheered by Budget, bond market now needs friendly RBI policy
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.
Union Budget: What’s in it for the Digital Economy & DPIs?
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
No direct boost to consumption in Budget, focus shifts to inflation
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
Banks' profits get a strong leg-up from India Budget
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
Why Budget 2024 will rank as a good budget
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
Budget speech checks all the boxes for government in an election year
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
GoI’s intent and targets for Infrastructure in Budget exemplifies Ram Se Rajya, Development Se Desh
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
Agriculture: Budget Speech of 2024 reflects rectitude even if general elections are near
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
Interim Budget seeks to decouple budget-making from long-term policy goals
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
Sting For India’s Banking Tale: Paytm’s punishment and the pain ahead
Disregarding regulators, simply because one is a poster boy for their industry vertical, holds no sway with the regulators, at least the RBI. For those sceptical about regulatory independence in India, consider this a potent wake-up call. This is also a message to other financial regulators to showcase their supervisory independence and proactively act against errant entities
A handy reckoner to the best of MC Pro on Budget 2024
Do you want to be abreast of the main issues pertaining to the budget? We have you covered
Budget Snapshot: Renewable energy a focus area for government spending
The renewables sector has been a key priority for the government to meet India’s growing energy needs while keeping climate considerations in mind
Will Budget 2024 address costs of de-globalisation like supply chain inefficiencies and sticky inflation?
De-globalisation leads to supply chain inefficiencies and in turn makes inflation sticky. Tackling that calls for a well-coordinated fiscal, monetary, and trade policy response. Budget 2024 provides an opportune moment to put this into practice
Why we are expecting a pro-investment budget
Keeping in line with the focus on India’s financial growth, the Union Budget 2024 is expected to be pro-investment with an emphasis on improving the ease of doing business and attracting foreign investment
MC Pro Quick Take: Sun Pharma’s US sales outpace Dr Reddy’s, Cipla in Q3
Sun Pharma’s specialty drugs business continue to grow at a brisk pace, helped by ramp-up of key products
The Chinese transformation of Hong Kong is almost complete
As Westerners are leaving, professionals from the mainland are taking their place. Hong Kong overtook Switzerland to become the world’s largest cross-border financial centre last year, as a result of the inflow of Chinese wealth. All of this further emphasizes the city’s dependence on China, and its transformation into another mainland city
