Govt may look to increase capex, domestic consumption to boost growth
To boost growth, the government may focus on increasing capex and boosting domestic consumption, particularly targeting the middle class. This could provide a fillip to stocks in those sectors.
Print Edition: Feb 02, 2025
In search of a Booster Shot
India inc. is brimming with expectations as Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025-26 on February 1. Several sectors are anticipating measures that will revitalise the economy, which has slowed in recent quarters. Equity investors, too, are looking for signals from the Budget to understand the policy direction of the government. According to the First Advance Estimates, India’s economy is likely to grow at 6.4% in FY25, much slower than the 8.2% in the previous fiscal, and at a 4-year low.
