At the meeting, the Finance Secretary, DIPAM secretary, and secretaries of Department of Economic Affairs and Department of Financial Services, and Chief Economic Adviser to the Government of India were also present.
Union Finance Minister Nirmala Sitharaman (Photo:ANI file photo)
Finance Minister Nirmala Sitharaman on Thursday met stakeholders from the financial sector and capital markets as part of the pre-Budget consultations.
At the meeting, the Finance Secretary, DIPAM secretary, and secretaries of Department of Economic Affairs and Department of Financial Services, and Chief Economic Adviser to the Government of India were also present.
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The Finance Minister has so far held a series of meetings with various stakeholders, including with MSMEs, farmers’ associations, and economists.
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This was her seventh in the pre-budget series of meetings. Recently, the Federation of Indian Chambers of Commerce & Industry (FICCI), an industry body, has outlined 11 main expectations from the upcoming Union Budget.
FICCI has urged the government to consider increasing capex by 15% in FY26 to maintain growth momentum amidst global uncertainties.
Jefferies too in a report said that the government should increase capex by 10-12% in the upcoming Union Budget to ensure that it maintains its focus on infrastructure development and instils confidence among stakeholders.
The report emphasized that sustained capex growth is crucial for economic momentum, especially in a year of transition following elections.
The Confederation of Indian Industry (CII) has urged the government to announce some specific policies in the upcoming Union Budget, which are aimed at boosting consumption in the economy.
Among some of the key suggestions, CII said the government should reduce excise duty on fuel products, cut personal income tax rates for individuals earning up to Rs 20 lakh per annum, and increase daily wages under Mahatma Gandhi National Rural Employment Scheme (MGNREGS), to augment consumption.
Coming in the backdrop of weak GDP numbers and weak consumption in the economy, the Budget for 2025-26 will be tabled on February 1, 2025.
India’s GDP grew by an impressive 8.2% during the financial year 2023-24, and continued to be the fastest-growing major economy. The economy grew by 7.2% in 2022-23 and 8.7% in 2021-22.
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