Global Economy

On path to a brighter and more prosperous India

In an era of uncertainty, the unveiling of a budget that charts a clear course for the nation is a welcome sight.
A cornerstone of this budget is its commitment to policy continuation, a vital factor that promises to instil confidence and stability in the corporate sector.
The interim budget brings together growth, climate, and social empowerment, while maintaining a careful balance between current investment rate and fiscal discipline.
The FY25 fiscal deficit has been pegged at 5.1% of GDP which is lower than market expectations and the finance minister has reiterated her commitment to take fiscal deficit below 4.5% of GDP by FY26.

This will cheer the market and should facilitate lower market interest rates.

The budget focuses on a climate-friendly approach, expanding and strengthening the EV ecosystem, domestic tourism, and multi-modal logistics that will propel India towards the vision of a developed nation by 2047. It strengthens the foundations of Viksit Bharat by enabling the states to adopt reforms, which will capture the momentum created from the Centre towards Amrit Kaal to further enhance the business climate on-the-ground. Several key aspects of the budget are targeted towards many high-potential growth sectors in India. The government’s commitment to Net Zero and renewable energy has continued to be demonstrated through progressive actions.

India ranks 4th globally in installed solar capacity and rooftop solarization is intended to benefit one crore households.

The 50-year interest free loans to private sector for R&D will boost innovation and the drive for Atmanirbharta in the defence sector, particularly deep-tech technologies for defence purposes. Expanding focus on logistics towards making India’s infrastructure globally competitive through the introduction of three rail corridors will improve logistics efficiency, reduce costs, and ultimately benefit the industry. Overall, the budget showcases the government’s commitment to fostering inclusive, well-rounded growth in India while also keep an eye on the purse strings. It is time for us at India Inc to buckle down, embrace razor focus and execute our plans with precision as we traverse the path to a brighter and more prosperous India.

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