The key equity benchmarks reversed trend and traded with moderate losses amid the ongoing Union Budget announcements by the Finance Minister. The Nifty slipped below the 23,450 mark.
At 12:10 IST, the barometer index, the S&P BSE Sensex, slipped 317.42 points or 0.41% to 77,183.15. The Nifty 50 index lost 91.25 points or 0.39% to 23,417.15.
In the broader market, the S&P BSE Mid-Cap index declined 0.49% and the S&P BSE Small-Cap index shed 0.20%.
The market breadth was positive. On the BSE, 1,873 shares rose and 1,808 shares fell. A total of 167 shares were unchanged.
The budget session will take place in two phases: the first part runs until February 13, while the second session will be held from 10 March 2025 to 04 April 2025.
Union Budget 2025: Finance Minister Unveils Ambitious Plans for India's Future
Finance Minister Nirmala Sitharaman is currently delivering the Union Budget 2025, outlining a comprehensive vision for India's economic growth and inclusive development. The ongoing speech highlights a strong focus on key sectors including education, technology, manufacturing, healthcare, access to credit, and agriculture, all while emphasizing fiscal responsibility. '
Sitharaman underscored the government's commitment to fiscal consolidation, aiming to keep the fiscal deficit on a downward trajectory and reduce central government debt as a percentage of GDP. The budget projects total receipts for 2024-25 at Rs 31.47 lakh crore and total expenditure at Rs 47.16 lakh crore. The fiscal deficit target for FY25 is set at 4.8%, with a further reduction to 4.4% planned for FY26. A new Income Tax bill, focused on trust-based and streamlined compliance, will be introduced next week. A significant move to attract foreign investment is the increase in FDI in the insurance sector from 74% to 100%.
Tax processes will be streamlined through faceless assessments, faster tax returns, and five Vivad Se Vishwas schemes for expedited dispute resolution. Mergers and acquisitions will be facilitated with quicker approvals and expanded regulations, enhancing ease of doing business. Technological advancement will be bolstered by establishing three Centers of Excellence for Artificial Intelligence (AI) with a Rs 500 crore outlay, focusing on AI in education. A National Manufacturing Mission will support clean technology production, including domestic manufacturing of electric vehicle (EV) batteries and solar panels. Five new national skilling centers will be established, and existing IITs will expand infrastructure to accommodate 6,500 more students. Atal Tinkering Labs will be introduced in government schools to promote innovation.
The PM Gatishakti initiative will empower the private sector with access to crucial data and maps for improved logistics and infrastructure planning. Tourism, a key driver of employment, will be boosted through collaboration with states to develop 22 top tourism destinations. Energy security is prioritized, with a plan to develop 100 gigawatts of nuclear energy by 2047. Basic Customs Duty (BCD) exemption on cobalt powder, lithium-ion battery waste, scrap, and 12 other critical minerals will secure material availability for manufacturing.
Healthcare will see the establishment of daycare cancer centers in all district hospitals within three years. Medical tourism will be promoted through public-private partnerships and easier visa norms. Credit access for micro, small enterprises, startups, and exporters will be significantly expanded. Credit guarantee cover for micro and small enterprises will double to Rs 10 crore, unlocking substantial additional credit. Startups will see their cover rise to Rs 20 crore. Exporter MSMEs will be eligible for term loans up to Rs 20 crore, and micro-enterprises on the Udyam portal will receive customized credit cards with a Rs 5 lakh limit.
Entrepreneurship will be fueled by a New Fund of Funds for Startups, with an additional Rs 10,000 crore, doubling the existing allocation. A Food Processing Institute will be established in Bihar, and a new Manufacturing Mission will support Make in India. A special scheme will offer term loans to 5 lakh women-led businesses. Agriculture receives strong support through the PM Dhan Dhanya Krishi Yojana, aimed at enhancing productivity in 100 districts. The Developing Agri Districts Programme will improve irrigation and credit access for 1.7 crore farmers. NAFED and NCCF will directly procure pulses from farmers to ensure self-reliance. A Makhana Board will be set up in Bihar, and a National Mission on High-Yielding Seeds will boost farm productivity.
Sitharaman emphasized investment as the third engine of growth, highlighting transformative reforms in various sectors. The budget prioritizes GYAN (Garib, Youth, Annadata, and Nari), energy security, economic resilience, and export promotion. Agriculture, MSMEs, and exports are positioned as key drivers of India's economic expansion. The 2025-26 budget aims to build household confidence and empower the middle class. Sitharaman highlighted India's rapid economic growth and growing global confidence in its potential, emphasizing the next five years as crucial for achieving Sabka Vikas (inclusive development).
Economy:
India's fiscal deficit for the first nine months of the current fiscal year stood at Rs 9.14 lakh crore, or 56.7% on the annual estimates, data released by the Controllerer General of Accounts (CGA) showed on Friday, according to media reports. The fiscal deficit widened from 55% in the comparable year- earlier period. Total receipts for the period stood at Rs 23.18 lakh crore, while overall government expenditure in April to December was at Rs 32.32 lakh crore.
The combined index of Eight Core Industries (ICI) increased by 4 percent (provisional) in December 2024 as compared to the index in December 2023. The production of coal, electricity, steel, cement, refinery products, fertilizers, and crude oil recorded positive growth in December 2024.
The final growth rate of Index of Eight Core Industries for September 2024 increased by 2.4 percent. The cumulative growth rate of ICI during April to December 2024'25 is 4.2 percent (provisional) as compared to the corresponding period of last year.
Powered by Capital Market - Live News