On path to a brighter and more prosperous India

The FY25 fiscal deficit has been pegged at 5.1% of GDP, lower than market expectations, with a commitment to reducing it below 4.5% of GDP by FY26. The budget focuses on a climate-friendly approach, strengthening the EV ecosystem, domestic tourism, and multi-modal logistics to propel India towards a developed nation by 2047.

It also includes measures to boost innovation in the defense sector and improve logistics efficiency.

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.