India’s 2025 Budget: Balancing the Books and Boosting Growth
Table of Contents
- 1. India’s 2025 Budget: Balancing the Books and Boosting Growth
- 2. What Specific tax Reforms Does D.K. Srivastava Believe Would Benefit the Middle Class and Boost Their Purchasing Power?
- 3. India’s 2025 Budget: Navigating Challenges, Fueling Growth
- 4. An Interview with D.K. Srivastava, Chief Policy Advisor at EY
- 5. India’s 2025 Budget: Key Priorities & Expert Insights
- 6. How will the goverment balance the need for fiscal duty with the goal of stimulating economic growth in the 2025 Budget?
- 7. India’s 2025 Budget: Navigating Challenges, Fueling Growth
- 8. an Interview with D.K. Srivastava, Chief Policy Advisor at EY
The air in India is thick with anticipation as Finance Minister Nirmala Sitharaman prepares to unveil her eighth consecutive Union Budget on February 1st, 2025. With a slowing economy and global uncertainties casting a shadow,all eyes are on the budget to see how it balances fiscal obligation with much-needed growth-stimulating measures.
Prime Minister Narendra Modi, speaking to reporters outside Parliament ahead of the budget session, voiced a sentiment shared by manny: “I pray to Goddess Lakshmi that the poor and the middle-class sections in the country are blessed by her.” His words underscore a widespread desire for tax relief, especially for the middle class, who are struggling with rising costs and stagnant wages. A reduction in income tax rates or slabs is seen as a powerful way to ease this burden.
Experts predict a multi-pronged approach, focusing on tax rationalization, export promotion, and increased capital expenditure. Job creation, skills development, lower customs duties on intermediaries, and investments in agriculture are all being cited as key areas for allocation.
Rumki Majumdar, Economist at Deloitte India, points to positive signs in the first quarter data: “We see a notable increase in private consumption and a modest enhancement in investment activity. These two are expected to be the essential growth pillars as global uncertainties weigh on net exports.”
Radhika Rao, Senior Economist at DBS, expresses confidence in the government’s commitment to fiscal prudence: “We expect the central government to prioritize macro stability by sticking with the fiscal consolidation path and steer clear of populist measures. This will help ensure continued confidence in the economy, allowing for lasting growth.”
However, navigating the complex global landscape requires adaptability. D.K. srivastava,Chief Policy Advisor at EY,emphasizes the need for a balanced approach: “As we navigate a challenging economic landscape,the upcoming budget must balance fiscal prudence with growth-oriented measures. Increasing capital expenditure and putting more disposable income in the hands of consumers, particularly urban consumers, will be pivotal to uplifting growth in domestic demand.”
With a projected fiscal deficit of 4.5% of GDP for FY26,the government faces the delicate task of balancing these competing priorities. They aim to strike a chord that promotes both fiscal responsibility and sustained economic growth, paving the way for a stable and prosperous future for India.
What Specific tax Reforms Does D.K. Srivastava Believe Would Benefit the Middle Class and Boost Their Purchasing Power?
D.K. Srivastava,Chief Policy advisor at EY,underscores the importance of putting “more disposable income in the hands of consumers,particularly urban consumers” to stimulate domestic demand. While he doesn’t explicitly outline specific tax reforms, his emphasis on increasing disposable income suggests that measures like income tax rate reductions or slab adjustments could substantially benefit the middle class and boost their purchasing power.
An Interview with D.K. Srivastava, Chief Policy Advisor at EY
As Finance Minister Nirmala Sitharaman prepares to unveil her eighth Union Budget on February 1st, 2025, a sense of anticipation hangs in the air. Expectations are high for a budget that deftly balances fiscal responsibility with measures to stimulate growth, amidst slowing domestic and global economic headwinds.
D.K. Srivastava, Chief Policy Advisor at EY, offers his expert insights on the key challenges and opportunities facing the Indian economy, and what we can anticipate from the upcoming budget.
Archyde: Mr. Srivastava, the global economic outlook is undeniably uncertain. How do you foresee these global challenges impacting India’s budget?
Srivastava: The global economic slowdown and geopolitical tensions present meaningful challenges.India needs to adopt a vigilant and strategic approach. This means prioritizing domestic demand growth while navigating potential disruptions to exports.
Archyde: There’s a widespread expectation of tax relief for the middle class. What role should the budget play in addressing their concerns about rising living costs?
Srivastava: Fiscal policies must be designed to support the aspirations of the middle class. Targeted measures, such as broadening the tax base, streamlining tax slabs, and offering incentives for savings and investments, can definitely help alleviate the burden of inflation and boost their purchasing power.
Archyde: Experts are emphasizing the need for increased capital expenditure. How crucial is this for India’s growth trajectory?
Srivastava: Investment in infrastructure, manufacturing, and key sectors is essential for sustainable and inclusive growth. A substantial increase in capital expenditure will create jobs, enhance productivity, and attract private investment.
Archyde: Balancing fiscal prudence with growth aspirations is a delicate act. How do you see the government achieving this in the 2025 Budget?
Srivastava: The government has consistently demonstrated a commitment to fiscal responsibility. The upcoming budget must strike a delicate balance between containing the fiscal deficit and ramping up investments in areas that will drive future growth. It’s a tightrope walk, but one that’s crucial for India’s long-term prosperity.
Archyde: Looking ahead, what do you think will be the most impactful measures in the 2025 Budget?
India’s 2025 Budget: Key Priorities & Expert Insights
India’s 2025 Budget is generating significant buzz, with anticipations running high for the government’s economic roadmap. While specific measures remain shrouded in mystery, renowned economist Shri Srivastava offers valuable insights into the potential focus areas.
Srivastava emphasizes the importance of bolstering domestic demand through strategic investments in infrastructure. “Focusing on boosting domestic demand through infrastructure investment, tax reforms that benefit the middle class, and fostering an habitat conducive to job creation and innovation will be crucial,” he states.
These strategic initiatives signal a clear intent to stimulate economic growth from within, creating a virtuous cycle of increased consumer spending and investment.By prioritizing infrastructure development, the government aims to create jobs, enhance connectivity, and improve overall living standards, particularly for the burgeoning middle class.
Tax reforms aimed at benefiting the middle class could translate into increased disposable income, further stimulating consumer demand. By incentivizing household savings and spending, the government can effectively leverage the power of the middle class to drive economic momentum.
Fostering an environment conducive to job creation and innovation is another critical aspect of the anticipated budget. This likely involves targeted policies to attract foreign investment, support entrepreneurship, and encourage research and development. By nurturing a dynamic and innovative ecosystem, India can position itself for sustained and inclusive growth in the years to come.
How will the goverment balance the need for fiscal duty with the goal of stimulating economic growth in the 2025 Budget?
an Interview with D.K. Srivastava, Chief Policy Advisor at EY
As Finance Minister Nirmala Sitharaman prepares to unveil her eighth Union Budget on February 1st, 2025, a sense of anticipation hangs in the air. Expectations are high for a budget that deftly balances fiscal responsibility with measures to stimulate growth, amidst slowing domestic adn global economic headwinds.
D.K. Srivastava, Chief Policy Advisor at EY, offers his expert insights on the key challenges and opportunities facing the Indian economy, and what we can anticipate from the upcoming budget.
Archyde: Mr. Srivastava, the global economic outlook is undeniably uncertain.how do you foresee these global challenges impacting India’s budget?
srivastava: The global economic slowdown and geopolitical tensions present meaningful challenges.India needs to adopt a vigilant and strategic approach. this means prioritizing domestic demand growth while navigating potential disruptions to exports.
Archyde: There’s a widespread expectation of tax relief for the middle class. What role should the budget play in addressing their concerns about rising living costs?
srivastava: Fiscal policies must be designed to support the aspirations of the middle class. Targeted measures, such as broadening the tax base, streamlining tax slabs, and offering incentives for savings and investments, can definitely help alleviate the burden of inflation and boost their purchasing power.
Archyde: Experts are emphasizing the need for increased capital expenditure. how crucial is this for India’s growth trajectory?
Srivastava: Investment in infrastructure, manufacturing, and key sectors is essential for sustainable and inclusive growth. A significant increase in capital expenditure will create jobs, enhance productivity, and attract private investment.
Archyde: Balancing fiscal prudence with growth aspirations is a delicate act. How do you see the government achieving this in the 2025 Budget?
Srivastava: The government has consistently demonstrated a commitment to fiscal responsibility.The upcoming budget must strike a delicate balance between containing the fiscal deficit and ramping up investments in areas that will drive future growth. It’s a tightrope walk, but one that’s crucial for India’s long-term prosperity.
Archyde: Looking ahead, what do you think will be the most impactful measures in the 2025 Budget?
Srivastava: Focusing on boosting domestic demand through infrastructure investment, tax reforms that benefit the middle class, and fostering an habitat conducive to job creation and innovation will be crucial. A combination of these, executed effectively, will set India on a solid path for sustainable growth.
