Budget 2025: Will Economic Masterstroke of Modi Revitalize GDP?

Delhi - As the Union Budget 2025 approaches, all eyes are on Prime Minister Narendra Modi's government to unveil strategies that could rejuvenate India's economic landscape. Analysts anticipate a blend of fiscal consolidation and growth-stimulating measures.  

One of the most anticipated moves is a revision of personal income tax slabs. Such adjustments aim to increase disposable income for middle-class households, boosting consumption—a critical driver in an economy facing demand challenges.  

In the agricultural sector, the government is expected to enhance allocations to schemes that bolster rural incomes and productivity. This includes increased subsidies for fertilizers and support for rural development programs, which could significantly benefit consumer staples and agricultural input companies.  

Infrastructure development remains a priority, with a projected 10% increase in capital expenditure. This focus aims to stimulate private investments, particularly in manufacturing, construction, and textiles, fostering job creation and economic expansion.  

However, a notable shift in policy is the government's move away from aggressive privatization. Instead, plans are underway to invest billions into reviving state-run firms, with the belief that overhauled entities could return to profitability and contribute to the economy.