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Budget 2025: India has less than ₹1 lakh crore to stimulate the economy

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Ahead of Budget 2025, expectations are running high across all quarters. Individuals are hoping for tax cuts, corporations are lobbying for incentives, MSMEs want access to cheaper credit, voters are demanding more spending on infrastructure like roads and bridges, while government employees are seeking salary hikes. But does the government have the fiscal space to meet these demands?

The government has just ₹80,000 crore to ₹1 lakh crore in Budget 2025 for stimulating the economy, according to Neelkanth Mishra, Chief Economist at Axis Bank.

In an interaction with CNBC-TV18, Mishra breaks down the fiscal math to explain why the available fiscal space is constrained.

“If your GDP is growing at 10%, and if the fiscal deficit quantum remains the same, the deficit will come down from 4.9% to 4.5%,” Mishra said.

Also Read: Govt pegs FY25 fiscal deficit at 4.9% of GDP

In absolute terms, the fiscal deficit (the gap between government’s income and expenditure) currently stands at a little over ₹16 lakh crore. The government had set a fiscal deficit target of 4.9% for 2024-25, with a target of 4.5% or below by 2025-26 (FY26). The nominal GDP for the current year is expected to be around ₹324 lakh crore. 

Parameter Projections
Fiscal Deficit (2024-25) ₹16.5 lakh crore (4.9% of GDP)
Fiscal Deficit Target (2025-26) 4.5% of GDP or below
Nominal GDP Estimate (2024-25) ₹324 lakh crore

With nominal GDP expected to grow at 10%, tax revenues are also projected to increase by 10-11%, adding about ₹4.2-₹4.3 lakh crore in gross tax revenue.

Also Read: India’s April-November fiscal deficit at ₹8.47 lakh crore

After the share of taxes is transferred to states, the Centre is left with about ₹3 lakh crore, he explained. From this amount, ₹1.2 lakh crore is required for interest payment on past borrowings, leaving the government with ₹1.8-₹2 lakh crore.

After meeting mandatory spending obligations such as pensions, subsidies, and defence, the government is left with just ₹80,000 crore-₹1 lakh crore, which it can allocate to capital expenditure (capex) for infrastructure and other public projects.

Parameter Projections
Gross Tax Revenue Growth 10-11%, adding ₹4.2-₹4.3 lakh crore
Net Tax Revenue (Centre’s Share) ₹3 lakh crore (after transfer to states)
Interest Payments ₹1.2 lakh crore
Mandatory Spending (Pensions, etc.) ₹1-₹1.2 lakh crore
Balance With Govt ₹80,000 crore-₹1 lakh crore

Why the govt might stick to its fiscal path and where it could spend 

Samiran Chakraborty, Chief Economist-India at Citigroup, who joined the conversation with Mishra. pointed out that India’s fiscal policy has been conservative in recent years, and with multiple global headwinds, including the pressure on the rupee, it makes sense to remain conservative.

Also, with S&P putting India on a positive outlook for the first time in 19 years, the government has limited room for deviation if it hopes to secure a ratings upgrade.

Mishra believes the ₹80,000 crore to ₹1 lakh crore of fiscal space needs to be spent wisely, and capital expenditure offers a much stronger multiplier effect than tax cuts.

“If you spend another ₹50,000 crore on a tax cut, it’s a rounding error,” he said, adding that such small tweaks won’t significantly boost GDP growth. To meaningfully support growth by 1-1.5%, strategic spending on capex is essential.

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Donald Trump revives ‘Mexico City Policy’ restricting aid over abortion

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President Donald Trump signed an executive action reinstating the so-called Mexico City Policy, delivering an early and expected victory to opponents of abortion rights who helped fuel his return to power.

The White House announced the move on Friday, the same day as the annual March for Life event on the National Mall in Washington, a major gathering of anti-abortion rights advocates. Trump addressed the group via a video message, and Vice President JD Vance attended in person.

Under the policy, international nonprofit organisations must certify that they do not provide or promote abortion services or counseling — using funds from any source — to continue receiving US federal money.

The policy’s status invariably depends on which party is occupying the White House. It was enacted by Republican President Ronald Reagan, and in the subsequent decades has been repeatedly rescinded by Democratic presidents and reinstated by GOP office-holders. Trump reinstated and expanded it during his first term in office, and saw it rescinded again by Joe Biden.

During Trump’s first term in office, he expanded the policy to apply to the US President’s Emergency Plan for AIDS Relief, maternal and child health and other US programs.

Trump also signed another related action to reaffirm the Hyde Amendment, a policy that dates back to 1977 that bans the use of federal money for abortion care.

Abortion is an issue on which Trump struggled with his messaging during the 2024 campaign as he sought to both retain his support among religious conservatives who helped propel him to the White House and court moderate and suburban women angered by the wave of restrictions following the Supreme Court’s overturning of Roe v. Wade. Trump nominated three of the conservative justices who repealed federal protections for abortion rights.

The right-flank of the Republican party and religious conservatives have pushed for a strict national ban. Trump has said he supports exceptions for women seeking abortions in cases involving rape, incest and when the life of the mother is at risk. He has said he would not sign a national abortion ban but has also suggested he would allow states to monitor women’s pregnancies to help enforce local restrictions on reproductive care.

Ahead of the march, Trump pardoned nearly two dozen people who were convicted for blocking access to abortion clinics.

“They will be released and they will be out very shortly,” Trump said Friday morning ahead of a trip to North Carolina and California. “It was disgraceful.”

Earlier this week, Trump also signed an executive order withdrawing from the World Health Organization.

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Home First Finance Q3 Results | Net profit, NII climb; ₹1,250-crore fundraise via QIP proposed

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Affordable housing financier Home First Finance Company India Ltd on Tuesday (January 28) reported a 24.1% year-on-year (YoY) surge in net profit at ₹97.8 crore for the third quarter that ended December 31, 2024. In the corresponding quarter of the previous fiscal, Home First Finance Company India posted a net profit of ₹78.8 crore.

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Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 28.4%, coming at ₹213.3 crore against ₹166.1 crore in the corresponding quarter of FY24.

Also Read: BHEL Q3 Results | Net profit zooms 124% on back of revenue surge

Further, Home First Finance Company India said it has plans to raise ₹1,250 crore to support its growth and expand its loan portfolio and asset base. The company’s board of directors has approved the issuance of equity shares through a qualified institutions placement (QIP) or other permissible modes.

The proposed fundraising, capped at ₹1,250 crore, will involve issuing equity shares to eligible investors in one or more tranches, subject to shareholder and regulatory approvals.

Home First Finance disbursed ₹1,193 crore in Q3FY25, marking an 18.4% YoY growth. The company’s assets under management (AUM) reached ₹11,949 crore, registering a 32.6% YoY increase and a 6.4% growth QoQ. Housing loans constitute 84% of the AUM, with the economically weaker section (EWS) and low-income group (LIG) segments forming approximately 61% of the customer base.

As of December 2024, the company reported expected credit loss (ECL) provisions of ₹84 crore, resulting in a provision-to-loans outstanding ratio of 0.8%. The gross non-performing asset (GNPA) to total provision coverage ratio (PCR) stood at 47.3% in December 2024, compared to 52.4% in December 2023.

Also Read: Mahanagar Gas Q3 Results | Declares dividend; net slides 30% but tops estimates

Total borrowings, including debt securities, stood at ₹9,213 crore as of December 2024. The company maintained a liquidity buffer of ₹3,486 crore. The cost of borrowings remained steady at 8.4% quarter-on-quarter.

The company’s total capital to risk-weighted assets ratio (CRAR) stood at 33.1%, with Tier I capital at 32.7%. The net worth increased to ₹2,408 crore in December 2024 from ₹2,289 crore in September 2024.

Home First Finance reported a total income of ₹407 crore, reflecting a 35.4% year-on-year growth. Pre-provision operating profit (PPOP) stood at ₹140 crore, up by 27.2% year-on-year. Net profit after tax (PAT) grew by 23.5% to ₹97 crore over last year. The return on assets (ROA) was at 3.4%, flat QoQ, while the return on equity (ROE) increased by 10 basis points to 16.6% over the previous quarter.

Also Read: Exide Industries Q3 Results | Net profit inches up, revenue flat, exports shine

The results came after the close of the market hours. Shares of Home First Finance Company India Ltd ended at ₹959.15, down by ₹17.95, or 1.84 %, on the BSE.

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Budget 2025: Understanding three types of Budgets in India — Balanced, surplus and deficit

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In India, there are three types of government Budgets based on fiscal estimates: balanced, surplus, and deficit. A balanced Budget ensures fiscal discipline by preventing reckless spending and maintaining economic stability, though it may not be suitable during deflation or economic downturns.

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Also Read: Budget 2025: Why a country needs a Budget

A surplus Budget, where revenues exceed expenditures, can be employed to curb aggregate demand during inflation and signal financial prosperity. On the other hand, a deficit Budget, which occurs when expenditures surpass revenues, is particularly beneficial for developing nations as it stimulates demand and drives economic growth.

1. Balanced Budget

A balanced Budget occurs when projected government spending matches anticipated government revenue for a fiscal year, aligning with the principle of living within means favoured by classical economists who believe that government spending should not exceed its earnings. While it promotes fiscal discipline and aims for economic balance, a balanced Budget does not ensure financial stability during recessions or deflationary periods. In theory, balancing projected expenses and income is straightforward, but in practice, it presents significant challenges.

Merits:

  • Promotes economic stability when implemented effectively.
  • Prevents imprudent government expenditures.

Demerits:

  • Ineffective during recessions and does not address issues like unemployment.
  • Inapplicable in less developed countries, limiting economic growth opportunities.
  • Restricts government spending on public welfare initiatives.

2. Surplus Budget

When projected government revenues exceed estimated expenditures for a fiscal year, there is a surplus

Budget. This demonstrates the nation’s financial stability by showing that tax collections exceed government spending on social welfare. Surplus Budgets can be employed during periods of inflation to mitigate aggregate demand.

Merits

  • A surplus Budget shows that more money is available for investments or debt payments, strengthening fiscal resilience.
  • The excess funds can be used to settle debt, lower interest rates, and raise the nation’s creditworthiness.

Demerits

  • A surplus Budget may lead to higher taxes, potentially burdening taxpayers and impacting economic activity negatively.

3. Deficit Budget:

A deficit Budget occurs when estimated government expenditures exceed expected revenues for a fiscal year, a characteristic often beneficial for developing economies.

Also Read: Budget 2025: What is the difference between subvention and subsidy

A deficit Budget is particularly effective during recessions and stimulates economic growth by increasing demand and enhancing employment opportunities. To cover the deficit, the government typically resorts to public borrowings, such as issuing government bonds or tapping into accumulated reserve surpluses.

Merits:

  • A deficit Budget can effectively tackle public concerns such as unemployment during economic downturns by boosting government spending.
  • A deficit Budget allows the government to allocate funds for essential public welfare programmes and infrastructure development.

Demerits:

  • The availability of deficit funding may tempt the government to engage in wasteful or unsustainable spending practices.
  • Financing deficit budgets through borrowing can lead to increased national debt levels, requiring higher future repayments and interest payments.

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Israel releases 200 Palestinian prisoners in Gaza ceasefire deal after Hamas freed 4 soldiers

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Israeli authorities say they have released 200 Palestinian prisoners and detainees as part of the Gaza ceasefire deal. The release came hours after Hamas freed four young female Israeli soldiers from captivity in Gaza.

Hamas militants handed over four captive female Israeli soldiers to the Red Cross in Gaza City on Saturday after parading them in front of a crowd. Israel followed with the release of 200 Palestinian prisoners or detainees as part of the fragile ceasefire in the Gaza Strip.

Israeli and Hamas Swap Prisoners as Part of Ceasefire Agreement

The four Israeli soldiers smiled broadly as they waved and gave the thumbs-up from a stage in Gaza City’s Palestine Square, militants on either side of them and a crowd of thousands watching before they were led off to waiting Red Cross vehicles.

They were likely acting under duress, with previously released hostages saying they were held in brutal conditions and forced to record propaganda videos.

Israel then released 70 Palestinian prisoners who will not be allowed to return to the Gaza Strip or West Bank, according to Egypt’s state-run Qahera TV, which said they had arrived on the Egyptian side of the Rafah border crossing with Gaza. Egypt served as a key mediator in more than a year of talks that led to the truce agreement.

Later, buses carrying the remainder of the 200 Palestinian prisoners being released made their way from Ofer prison in the occupied West Bank toward Jerusalem and the city of Ramallah, where crowds of relatives and supporters awaited.

As the four Israeli soldiers were released, hundreds of people cheered in Tel Aviv’s Hostages Square where they were watching the drama unfold on a big screen television.

“I’m speechless,” said Aviv Bercovich, one of the onlookers. “I had goosebumps watching them. I just want the war to end.” Prime Minister Benjamin Netanyahu’s office later released a video showing the freed hostages being welcomed at an Israeli army base. One of them, Liri Albag, smiled, gave two thumbs up and made a heart shape with her hand before getting into a van.

Netanyahu’s office later said that Arbel Yehoud, a civilian hostage held by Hamas, was supposed to have been released Saturday. It said Israel would not allow Palestinians to begin returning to northern Gaza, which had been expected to begin by Sunday, until she is freed.

A senior Hamas official said the group has informed mediators that Yehoud will be released next week.

Meantime, an Egyptian official involved in the negotiations called the matter a “minor issue” that mediators are working to resolve. Both officials spoke on condition of anonymity because they were not authorized to discuss the matter publicly.

The crowds in Tel Aviv and also in Gaza City began gathering early in the day in anticipation of the second such exchange between Israel and Hamas since a ceasefire began in the Gaza Strip last weekend. The excitement in Israel was palpable, with TV stations filled with live reports from smiling news anchors and reporters interviewing ecstatic friends and relatives of the hostages.

The truce is aimed at winding down the deadliest and most destructive war ever fought between Israel and the militant group. The fragile deal has so far held, quieting airstrikes and rockets and allowing for increased aid to flow into the tiny coastal territory.

When the ceasefire started Sunday, three hostages held by the militants were released in exchange for 90 Palestinian prisoners, all women and children.

The Release of Hostages: Four Israeli Soldiers and 200 Palestinian Prisoners

Who are the soldiers and prisoners being released? The four Israeli soldiers, Karina Ariev, 20, Daniella Gilboa, 20, Naama Levy, 20, and Albag, 19, were captured in Hamas’ October 7, 2023, attack that ignited the war.

In exchange, Israel agreed to release 200 prisoners, including 121 who were serving life sentences, according to a list released by Hamas.

The more notorious militants being released include Mohammad Odeh, 52, and Wael Qassim, 54, both from east Jerusalem. They were accused of carrying out a series of deadly Hamas attacks against Israelis, including a bombing at a cafeteria at the Hebrew University of Jerusalem in 2002 that killed nine people, including five US citizens.

Of the 70 who were expelled to Egypt, some may eventually go to other countries, with Algeria, Tunisia and Turkiye all expressing a willingness to take them in, according to Abdullah al-Zaghari, the head of a Palestinian prisoner advocacy group.

The four Israeli soldiers released were taken from Nahal Oz base near the border with Gaza when Palestinian militants overran it, killing more than 60 soldiers there. The female abductees had all served in a unit of lookouts charged with monitoring threats along the border. A fifth female soldier in their unit, Agam Berger, 20, was abducted with them but not included in the list.

“This is huge,” said Gaza City resident Radwan Abu Rawiya, one of thousands who watched the hostages turned over in Palestine Square.

“People forgot about the war, destruction and are celebrating,” he said.

In a televised statement, Israel’s army spokesman Rear Adm. Daniel Hagari confirmed the released hostages were in Israeli hands and on their way home, while criticising what he called the “cynical” public display of the young women by Hamas before their release.

He also said that Israel is concerned about the fate of the two youngest hostages — Kfir and Ariel Bibas — and their mother Shiri. Kfir Bibas marked his second birthday in captivity earlier this month.

Hagari said the army is committed to bringing all hostages home.

What’s next in the ceasefire deal Israel had been expected to begin pulling back from the Netzarim corridor — an east-west road dividing Gaza in two — and allowing displaced Palestinians in the south to return to their former homes in the north for the first time since the beginning of the war.

But that appears to be on hold pending the release of Yehoud.

The Hamas-run interior ministry said earlier said that displaced Palestinians will be allowed to return to northern Gaza starting Sunday. The ministry, which oversees police forces, said Palestinians will be able to move between southern and northern Gaza on foot through the coastal Rashid road.

Uncertainty Looms Over the Ceasefire’s Future Amid Ongoing Negotiations

What happens after the deal’s initial six-week phase is uncertain, but many hope it will lead to the end of a war that has levelled wide swaths of Gaza, displaced the vast majority of its population and left hundreds of thousands of people at risk of famine.

The conflict began with a cross-border attack led by Hamas on October 7, 2023, when Palestinian militants killed some 1,200 people, mostly civilians, and took around 250 others hostage.

More than 100 hostages were freed in a weeklong truce the following month. But dozens have remained in captivity for over a year with no contact with the outside world. Israel believes at least a third of the more than 90 captives still inside Gaza were killed in the initial attack or died in captivity.

While many rejoiced in Tel Aviv’s Hostage Square after the four soldiers were released Saturday, some worried about the fate of those still in captivity.

“It’s hard that she’s still there,” said Yoni Collins, a family friend of Berger, the fifth female soldier taken from Nahal Oz base.

“There were five girls, four are out and now she’s there alone,” he said. “We’re just waiting for her to come home.” Israel’s air and ground war, one of the deadliest and most destructive in decades, has killed over 47,000 Palestinians, according to local health officials, who do not say how many were militants. They say women and children make up more than half the fatalities.

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What are debt mutual funds and who should invest?

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Debt mutual funds are investment schemes that pool money from investors and invest in fixed-income instruments such as government and corporate bonds, money market instruments and corporate debt securities. Debt mutual funds are also known as bond funds or fixed-income funds. They are an excellent choice for people looking for a steady and relatively low-risk investment avenue.

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Though not completely risk-free, they are popular among conservative investors who want to preserve their money and generate moderate, predictable returns. The manager of a debt fund purchases listed or unlisted debt instruments at a specific price. Then the fund manager sells them at a margin, which increases or decreases the fund’s worth.

These funds provide diversification benefits by investing in a variety of debt securities with different maturities, credit ratings and issuers. This diversification spreads risk across multiple assets. It often offers liquidity to investors, allowing them to buy and sell fund units at current market prices. However, liquidity might vary based on the type and maturity of the underlying securities.

ALSO READ | 76% of Gen Z choose steady investment options for financial security: Survey

Who should invest in a debt fund?

Medium-term investors: People with a medium-term investing horizon of 3-5 years can choose debt schemes. Dynamic bond funds are ideal for such investors since they provide higher returns than fixed deposits and short-term bond funds. If a person prefers monthly payouts, they can also select a monthly income plan.

Short-term investors: Individuals with a 3-12 month investment horizon should consider investing in debt funds. It is a better option for holding funds than a traditional savings account. They can consider investing in liquid funds, which typically provide yearly returns of 6-7%.

Benefits of investing in debt mutual funds

  • Debt funds often invest in fixed-income securities, which provide predictable and relatively consistent returns compared to equity-based instruments.
  • These funds spread capital among multiple debt instruments that reduce the impact of a single security’s performance on overall returns.
  • These funds focus on bonds and government securities, so they are less volatile and subject to market fluctuations.
  • Experienced fund managers handle asset selection and portfolio changes, saving you time and effort from conducting individual bond research.
  • Over particular holding periods, capital gains on debt funds may earn favourable tax treatment than interest received on fixed deposits.
  • Most debt funds have a redemption option, giving you instant access to your money in need.
  • A variety of categories, like liquid funds for short-term needs and corporate bond funds for medium-term needs, allow you to connect your investments with specific objectives.

ALSO READ | Small-cap stocks plunge — what should mutual fund investors do?

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When will Union Budget 2025 be presented? Know key dates

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Finance Minister Nirmala Sitharaman will table her eighth straight Union Budget on Saturday, February 1. The first part of the Budget session of Parliament will be held from January 31 to February 13.

President Droupadi Murmu will address the joint session of Parliament on January 31.

“The Hon’ble President will address the joint sitting of both Houses on 31st January 2025 at 1100 Hrs in the Lok Sabha Chamber. Union Budget 2025-26 to be presented on 1st February, 2025 in the Lok Sabha,” Parliamentary Affairs Minister Kiren Rijiju said in a post on X.

A day before the presentation of the Union Budget, the Economic Survey 2024-25 is scheduled for release on January 31. It will provide a detailed analysis of India’s economic performance over the past financial year.

This critical document is prepared by the Economic Division of the Department of Economic Affairs under the Chief Economic Advisor (CEA).

In the first part of the session, there will be nine sittings. Prime Minister Narendra Modi will respond to the motion of thanks on the president’s address and Sitharaman will reply to the discussion on the Budget.

Parliament will then break for recess to examine the Budget proposals and meet again from March 10. The session will conclude on April 4.

The entire Budget session will have 27 sittings.

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Early Modi-Trump interaction signals bipartisanship and stronger US-India ties

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Prime Minister Narendra Modi’s visit to the United States in February highlights the bipartisan support for US-India relations, according to former Indian envoy to the US, Taranjit Singh Sandhu.

Speaking to CNBC-TV18, Sandhu pointed out that the early interaction between Modi and US President Donald Trump signals India’s significance as a strategic partner. “This visit reflects the importance of India and the bipartisan commitment to strengthening the relationship,” Sandhu said.

This engagement follows an early phone call between the two leaders soon after Trump’s inauguration, mirroring their interactions during Trump’s first term. Sandhu believes the visit symbolises continuity in the partnership and sets the stage for reaffirming shared priorities across trade, energy, and defence.

Sandhu emphasised that this dialogue will serve as a platform for both nations to address mutual concerns and reinforce critical areas of collaboration.

Edited Excerpt:

Q: Prime Minister Modi will be among the first world leaders to visit the United States in February. They may meet on the sidelines of the AI Summit in France as well, but how do you see the priority given to India to Prime Minister Modi in the first set of phone calls and the first set of visits to the White House next month?

Sandhu: This early visit has two aspects. One is the importance of India — that India is an important country and an important partner for the United States. And secondly, I will also underline the bipartisanship. You will recall that Prime Minister Modi was recently one of the last visitors to the United States. President Biden hosted him at his personal residence in Delaware, and he would be one of the earliest visitors to the United States too under President Trump. While the visit has yet to be officially announced, President Trump mentioned this on Air Force One to a journalist. So that will send an important message. And I think it’s also significant that they are meeting because it’s a great opportunity.

Q: When we speak about the White House statement, one point that Donald Trump insisted on and emphasised was that India should procure more security equipment from the US. What could be on Trump’s wish list right now?

Sandhu: You have to remember that Trump won the election in the domestic context, and foremost in that is the economy. And when we talk of the economy, it’s the cost of living, oil, bread, milk prices. The vice president (JD Vance), in his first interview, mentioned all these.

If you now take a look at energy, LNG, tariffs — important ingredients of making the cost of living low for his American supporters, or people who voted for him, the large middle class. And from there, you can also see his desire for the relationship — trade should be balanced, and India should buy more LNG, oil. He has even said this to Europeans.

In Trump 1.0, India started purchasing LNG from the United States. So, the energy sector was important and covered in the conversation. If you look at the Indian statement, it includes trade, defence, investments, energy, and technology. These are the five areas which are being covered.

So, on the defence side, he generally appears to mean that there needs to be more balance, and India should be purchasing more from the United States. As I said, this is a good opportunity for both sides to re-emphasise and re-underline the important aspects of our relationship.

Watch the accompanying video for the entire conversation.

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Bajaj Auto Q3 Results | Net profit up 3% at ₹2,109 crore, revenue grows 6%; both miss estimates

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Pune-based automaker Bajaj car Ltd on Tuesday (January 28) reported a 3.3% year-on-year (YoY) increase in net profit at ₹2,108.7 crore for the third quarter that ended on December 31, 2024.

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In the corresponding quarter of the previous fiscal, Bajaj Auto posted a net profit of ₹2,042 crore. The CNBC-TV18 poll had predicted a profit of ₹2,128 crore for the quarter under review.

The company’s revenue from operations was up 5.7% to ₹12,807 crore against ₹12,114 crore in the corresponding period of the preceding fiscal, driven by strong exports, a robust domestic green energy portfolio, and another record performance in spares. However, it missed the estimated revenue of ₹12,963 crore.

At the operating level, EBITDA grew 6.2% to ₹2,581 crore in the third quarter of this fiscal over ₹2,430 crore in the year-ago quarter. The CNBC-TV18 poll had predicted an EBITDA of ₹2,545 crore for the quarter under review.

Also Read: Bosch Q3 Results | Net profit dips 12%, revenue up 6%; approves ₹595-crore asset sale

The EBITDA margin stood at 20.2% in the reporting quarter compared to 20.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 19.6% for the quarter under review.

The company achieved its highest-ever festive retail volumes in the domestic market, although billed volumes were recalibrated to normalise channel inventory built up in the previous quarter. Exports saw a broad-based recovery, resulting in the return of over 500,000 units after nine quarters.

The company also posted consistent profit growth, with EBITDA and PAT surpassing the ₹2,500-crore and ₹2,000-crore milestones, respectively. The EBITDA margin remained steady at 20.2%, reflecting a 10 basis point improvement YoY, as favourable USD/INR realisations and dynamic P&L management, including judicious pricing and cost efficiencies, offset the significant investments being made in strategic priorities.

Bajaj Auto’s domestic business was led by its Green Energy portfolio, which now contributes approximately 45% of revenue, up from 30% last year, as the company’s focused strategy takes effect. The electric vehicle segment made significant strides, delivering another quarter of around 100,000 units, nearly achieving leadership in the sector by doubling its share in electric two-wheelers (e2Ws) and tripling its share in electric three-wheelers (e3Ws) compared to last year, while moving from a loss to marginally positive EBITDA.

Also Read: UTI AMC Q3 Results | Net profit falls 19%, revenue dips 7%

In the competitive 125cc+ motorcycle market, the company delivered its highest-ever quarterly retail volumes, buoyed by the festive season. Despite retail volume growth and maintaining market share in the strategically important 125cc+ segment, the overall performance was impacted by a conscious decision not to engage in deep price discounting.

Bajaj Auto’s premium brands also performed well, with Triumph delivering its highest-ever quarterly retail volumes, driven by the Speed 400 upgrade, and KTM’s Duke 200/250 continuing to lead. Triumph’s network expansion is underway, now covering nearly 55% of the addressable market with 126 dealerships, while KTM expanded its India portfolio with 10 internationally acclaimed high-performance bikes, up to 1,390cc. Commercial vehicles also saw sustained growth, with quarterly retails hitting an all-time high.

Electric three-wheeler volumes surged 5x year-on-year, with market share expanding to a new quarter-high, supported by an extended network from 600 to over 850 touchpoints. Chetak maintained strong momentum, with volumes increasing 2.5x YoY and an exit market share of 25%, up by 1,100 basis points.

Also Read: Exide Industries Q3 Results | Net profit inches up, revenue flat, exports shine

Exports continued to recover, with double-digit revenue growth for the fourth consecutive quarter. The company made significant strides across Africa, Asia, and Latin America, more than offsetting a significant drop in KTM exports. LATAM saw continued growth, with another record quarter, while Africa contributed to growth with volumes in Nigeria recovering to over 100,000 units.

Bajaj Auto also asserted cash generation, adding approximately ₹3,000 crore in free cash flow during the first nine months of FY25. The company maintains a robust balance sheet, with surplus funds of nearly ₹15,000 crore after infusing capital into Bajaj Auto Credit Ltd, executing capex of approximately ₹450 crore, and paying over ₹2,200 crore in dividends to shareholders.

The results came after the close of the market hours. Shares of Bajaj Auto Limited ended at ₹8,421.80, up by ₹41.45, or 0.49%, on the BSE.

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What is healthcare budget and why is it important

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A healthcare budget is an essential element in the Union Budget. It is a financial plan for developing, maintaining and improving the country’s healthcare system. This budget covers various aspects, including infrastructure, medical research, preventive care, health insurance and public health programmes.

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In the Union Budget 2024-25, ₹90,958.63 crore was allocated for the country’s healthcare sector. The government allocated ₹87,656.90 crore to the health and family welfare department and ₹3,301.73 to the health research department.

Here are the key highlights:

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) got an allocation of ₹7,300 crore.

The budget allocation for the National Digital Health Mission, popularly known as Ayushman Bharat Digital Mission (ABDM) remained at ₹200 crore.

The government allocated ₹36,000 crore to the National Health Mission (NHM). The budget allocation for the Indian Council of Medical Research (ICMR) was raised to ₹2295.12 crore.

The National Tele Mental Health Programme was allocated ₹90 crore.

The Union Budget allocated ₹18,013.62 crore for autonomous bodies. The allocation for All India Institute of Medical Sciences (AIIMS), Delhi, was increased to ₹4,523 crore.

Union Finance Minister Nirmala Sitharaman announced full exemption of customs duty on three key cancer drugs. The Budget also announced a cut in customs duty on components of X-ray tubes and digital detectors.

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