Financial sector and market experts confer with FM Sitharaman in pre-Budget meet

Finance Minister Nirmala Sitharaman, on Thursday, convened her seventh pre-Budget consultation meeting with key stakeholders from the financial sector and capital markets. This was part of her ongoing series of discussions ahead of the Union Budget 2025-26, set to be tabled on February 1, 2025.The meeting included senior officials like the Finance Secretary, secretaries from the Departments of Economic Affairs, Financial Services, and DIPAM, as well as the Chief Economic Adviser. These consultations are integral to shaping the government’s economic strategy for the upcoming financial year.

So far, Sitharaman has interacted with a diverse array of stakeholders, including MSMEs, economists, and farmers’ associations. Prime Minister Narendra Modi also held deliberations with prominent economists and thought leaders at NITI Aayog last week, underscoring the importance of expert inputs in budget formulation.

The backdrop for this Budget is challenging, with India’s GDP growth in Q2 FY25 slowing to 5.4%, falling short of the RBI’s 7% projection. Growth in Q1 FY25 also lagged expectations, prompting the RBI to lower its FY25 growth estimate to 6.6% from 7.2%.Also read: Union Budget 2025 LIVE Updates

High-frequency data for October-December 2024, however, suggests signs of revival, buoyed by festive demand and improving rural consumption. The RBI, in its recent bulletin, noted this uptick as a positive trajectory for the economy, despite earlier sluggishness.

India’s economy remains resilient overall, having grown at 8.2% in FY24, maintaining its status as the fastest-growing major economy globally. Previous growth rates were 7.2% in FY23 and 8.7% in FY22.

The Union Budget 2025-26 will be Sitharaman’s eighth and is expected to lay the roadmap for the final stretch of the Modi government’s current tenure. All eyes are on the announcements aimed at addressing the economy’s challenges while fostering sustainable growth.