Introduction

The Union Budget 2025-26 is just around the corner, and India's economic trajectory hangs in the balance. As Finance Minister Nirmala Sitharaman prepares to present her eighth budget, here's what you need to know:

Current Economic Environment

India's growth slowed to 5.4% in Q2, primarily due to low capital formation and weak exports. However, consumer spending, mainly rural consumption, remains robust.

Upside Risks

1. Robust Infrastructure Spending: The government has consistently increased budgetary allocation for infrastructure, aiming to reduce logistics costs and boost supply chain efficiencies.
2. Real-Time Monitoring: API-enhanced systems allow for the real-time monitoring of trading activities and account access patterns. By employing advanced analytics, traders can instantly identify unusual behaviour that may indicate fraudulent activities. This quick response can save time and ultimately preserve trading capital.
3. Strong Credit Growth: Improved bank balance sheets and declining NPAs have increased lending, driving credit growth despite higher policy rates.
4. Services Sector Resurgence: The services sector grew 7.6% in FY24, with exports projected to grow 21.3% YoY.

Downside Risks

1. Inflation: India's retail inflation remains volatile, with food prices driving inflation above RBI's target rate.
2. Geopolitical Uncertainties: Global tensions, including the Israel-Iran conflict, may impact oil prices, supply chains, and investor sentiment.

Expectations from Budget 2025-26

1. Income Tax Breaks: Relief for individual taxpayers and measures to boost consumer spending.
2. GST Rationalization: Simplification and reduction of GST rates to promote economic growth.
3. Industry-Specific Policies: Support for sectors like manufacturing, agriculture, and services.

Key Dates and Timings

Budget Speech: February 1, 2025, at 11 am

BSE and NSE: Open on February 1, 2025, despite being a Saturday

Budget 2025- The Path to Explore for a Wealthier You, EVERMORE!

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