For a better experience, Read this story in our App
TO ENJOY ADDITIONAL BENEFITS
Connect With Us
Get BusinessLine apps on
Finance Minister Nirmala Sitharaman started her speech for government’s first full-year budget in the third term outlining plans aimed at youth, women, and agriculture.
The budget will focus on uplifting household sentiment, enhancing spending power of India’s rising middle class and boosting private investment to “unlock greater prosperity”, she said.
Nearly 400 million Indians living in urban areas are holding back purchases as falling wages and rising prices lower disposable incomes for households. India’s economy is set to log its weakest growth since the pandemic in the year through March after expanding more than 8 per cent last year.
The threat of tariffs by US President Donald Trump, which could disrupt global supply chains, and a rapidly-falling local currency have further clouded the outlook for India.
The federal budget comes just ahead of state elections in Delhi, a key region where Narendra Modi’s Bharatiya Janata Party is looking to unseat the ruling Aam Aadmi Party after 10 years.
State elections in Bihar, governed by a key Modi ally, are also due later this year. In July, Modi’s government promised airports, colleges, and tourism spots in the state to boost its economy.
Sitharaman announced programs to boost agriculture, a sector that employs the bulk of India.
The government will facilitate credit for 17 million farmers, and also announced a six-year mission for self reliance in pulses. Kaveri Seeds Co., Godrej Agrovet Ltd. were among the stocks that surged after the announcement.
The finance minister also announced setting up a board for fox nuts — considered a super-food — in Bihar as well as setting up of a fertilizer plant in Assam, another BJP-governed state.
The government announced plans to make the country a global manufacturing hub of toys, as well as measures focused on small and medium businesses, calling them a second engine for growth in the country. Companies including footwear maker Relaxo rose after the government announced a new policy to boost production.
The government plans to expand capacity at India’s top engineering institutes, as well as setting up of center of excellence in artificial intelligence. It also plans on adding capacity at medical colleges in the country, enabling 10,000 more students to enroll.
The country has planned a 100 billion rupees fund for startups to boost entrepreneurship in the country, which already has the third-largest startup ecosystem in the world.
More stories like this are available on bloomberg.com
Published on February 1, 2025
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.