The Indian Finance Club

The Indian Finance Club

2/1/2025, 7:01:25 AM

Finance Minister Nirmala Sitharaman presented India’s Union Budget for 2025-26 on February 1, 2025, focusing on enhancing the spending power of the middle class, promoting inclusive development, and encouraging private investment to stimulate economic growth.  Key Highlights: 1. Fiscal Measures: • Fiscal Deficit Reduction: The government plans to reduce the fiscal deficit to 4.4% of the Gross Domestic Product (GDP), down from 4.8% in the current fiscal year. The fiscal deficit represents the gap between the government’s income and expenditure.  • Borrowing Plans: To fund various projects and initiatives, the government intends to borrow ₹14.82 lakh crore in total, with net borrowings (after repayments) amounting to ₹11.54 lakh crore for the year 2025-26.  2. Tax Reforms: • *Personal Income Tax Relief: The income level up to which no personal income tax is charged has been increased to ₹12 lakh. This move aims to boost household consumption and savings by leaving more money in the hands of taxpayers. * • Customs Duty Adjustments: The government has reduced basic customs duties on certain marine products and critical minerals. Additionally, 36 life-saving drugs have been exempted from customs duties, potentially lowering their prices.  3. Foreign Direct Investment (FDI): • Insurance Sector: The FDI limit in the insurance sector is proposed to be raised to 100% from the previous 74%. This change is intended to attract more foreign investment and deepen market penetration in the insurance industry.  4. Agriculture and Manufacturing Initiatives: • Agricultural Missions: The government has launched a six-year mission to boost the production of pulses (such as tur, urad, and masoor dals) and a five-year mission to enhance cotton production. These initiatives aim to increase agricultural output and support farmers.  • National Manufacturing Mission: A new mission has been established to support the ‘Make in India’ program. It includes enhanced credit guarantees for small and medium-sized enterprises (SMEs) and the creation of funds to support startups and infrastructure development.  5. Infrastructure and Connectivity: • Regional Air Connectivity: Plans have been announced to improve regional air connectivity by adding 120 new destinations over the next decade. This initiative aims to make air travel more accessible across the country.  • Critical Minerals Development: A new policy will be introduced to develop critical minerals, focusing on securing essential resources for various industries.  6. Social Welfare and Employment: • Support for Gig Workers: Recognizing the contribution of gig workers (such as those working with online platforms), the government has introduced a social security scheme to ensure their welfare.  Overall, the 2025-26 budget emphasizes prudent financial management while implementing measures to stimulate economic growth, support key sectors, and enhance social welfare.

The Indian Finance Club

2/9/2025, 3:12:43 PM

How Recent RBI Rate Cuts and Delhi Elections could impact market short term and long term. Disclaimer : This post is for informational purposes only and not financial advice. Please do your own research before making any investment decisions. The Indian Finance Club is not responsible for any financial losses

The Indian Finance Club

2/18/2025, 4:55:52 PM

Interestingly FII turned buyers today. Both institution together added roughly 7.5k cr today.