Anish Shah, Managing Director and CEO of Mahindra and Mahindra praised the government’s focus on demand stimulation and manufacturing in Budget 2025.“The demand stimulus that was much needed is very well delivered,” he stated, adding that the emphasis on “Make in India” and making India the global manufacturing hub would significantly benefit the economy.Shah also welcomed the government’s push to ease business operations, reduce capital goods import duties, and address duty inversion. He concluded that these steps would significantly bolster the “Make in India” initiative.
Shah further applauded the government’s continued commitment to infrastructure investment (capex) and fiscal discipline, both of which he deemed vital for the country’s economic stability.In her Budget speech on Saturday, February 1, Finance Minister Nirmala Sitharaman outlined the fiscal deficit for 2025–26, estimating it at 4.4% of India’s GDP. This announcement comes after the government’s earlier projection of achieving a fiscal deficit of 4.5% by 2026–27. The fiscal deficit, which represents the gap between government expenditure and revenue, is a key indicator of the country’s financial health and future economic strategy.Dinesh Khara, former chairman of the State Bank of India (SBI), pointed out that the challenges faced in recent quarters, particularly those reflected in economic numbers, are being effectively addressed through this budget.While the budget might not directly influence interest rates, it offers clear insights into the government’s fiscal intentions. “As long as the fiscal deficit is kept under control, it is an indication that inflation will remain in check,” Khara noted.Catch all Budget related updates here.
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