Waaree Energies' largest investment of around Rs 8,000 crore will be directed towards scaling up the lithium-ion advanced chemistry storage cell and battery energy storage systems (BESS) plant from 3.5 GWh to 20 GWh.
The Rs 2.7 lakh crore dividend transfer from the Reserve Bank of India has helped provide some cushion, but international agencies are expecting a slippage in this year's fiscal deficit.
After the surge in public capex, expectations were high for large private companies to step in, however the pickup has been tepid.
The Centre also aims to continue increasing the allocation for capex in the upcoming year given that private investment is yet to rebound significantly.
The largest miss on FY25 capex is expected to be due to a spending slowdown in roads and highway projects, followed by housing and atomic energy.
The outlook on state capex is benign while poll-promised freebies could dent fiscal position.
The capital outlay for science and technology increased 273-fold. The government budgeted Rs 20,095 crore for the department, compared with Rs 73.4 crore spent in the previous fiscal year
One big hope for the market is that the tax relief provided by the finance minister will help increase domestic investment.
The central bank is to meet between February 6 and 8, 2025, and is expected to cut rates
India’s fiscal deficit at Rs 8.5 lakh crore had crossed the half way mark in the first eight months of the year
Income tax collection as percentage of GDP has overtaken corporate tax collection at 3.5% of GDP in FY24 vs corporate tax collection at 3.1% of GDP
The Budget must deliver a boost to consumption, must increase capex and at the same time provide incentives to the corporate sector to invest. The stimulus to consumption should be provided by tax cuts rather than through handouts
This year, the capital-expenditure is expected to increase to Rs 1.9 lakh crore with more optimistic analysts expecting a large part of it going to improve mobility vehicles and infrastructure for the Navy.
Industry insiders expect the government to raise capex allocation to Rs 11.5 lakh crore, from Rs 11.1 lakh crore a year ago.
Capital expenditure by states rose to 2.8 percent of GDP in 2023-24 from 2.5 percent in 2022-23, due to advance payment of tax devolution and enhanced allocation under the Centre’s scheme for Special Assistance to States for Capital Expenditure, the report added
The moderation in expenditure growth is likely to be broad-based, according to the NSE, impacting both, revenue expenditure as well as capital expenditure.
The finance minister emphasised that reducing the fiscal deficit from 5.6 percent of GDP in FY24 to 4.9 percent in FY25 will "not only keep the bond yields in check but also manage borrowing costs"
With capacity utilisation at a 11-year high of 78 percent in FY24 and the pipeline of sanctions and disbursements strong, a healthy growth in corporate loans is expected this year
Industry participants are calling for infrastructure upgrade, as industry experts seek a higher focus on railway safety.
Infrastructure woes continue to haunt and the industry is looking at the government to create provision of adequate infrastructure and abolish the negative fiscal regime that make it hard for industry players to make profits.
The sector has reported robust growth over the last 10 years with the Bharatiya Janata Party-led government spending around Rs 10,37,616.39 crore between 2014 and 2024 to construct 54,858 km of national highways.
While India has emerged as the world’s third-largest aviation market, with 4.2 lakh Indians flying daily domestically in 2024, over the last 10 years, the sector's profitability remains in question
Along with long-term plans that may be in the pipeline for the sector, any move on price rationalisation on early BOT and TOT projects will be closely watched.
Industry participants also want the central government to come out with a production-linked incentive scheme to boost the production of railway ancillary parts in India.
This confidence, according to industry experts, is rooted in the nearly 4.23 million units of passenger vehicle (PV) sales achieved during FY 24, with sustained growth projected for the coming years.