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FM Sitharaman goes for big push to job-led inclusive growth in Budget 2025-26

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New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Saturday presented the Budget 2025-26 in the Parliament with an aim at accelerating employment-led inclusive growth, propelled by investments in the agricultural and rural sector, MSMEs and exports while sticking to the fiscal consolidation path.

“This budget is dedicated to accelerating growth, driven by our aspirations for a ‘Viksit Bharat.’ Our economy remains the fastest growing among all major economies,” the Finance Minister said on the floor of the Lok Sabha.

The key domains covered in the Union Budget include taxation, power, urban development, mining, the financial sector, and regulatory reforms. These areas are central to the government’s focus on driving growth, improving infrastructure, enhancing governance, and ensuring sustainable development across various sectors.

She has kept the budget deficit target on a declining path to 4.4 per cent of GDP in 2025-26 from 4.8 per cent of GDP in 2024-25.

The net market borrowing for the budget has been fixed at Rs 11.54 crore while the rest of the funds will come from small savings and other sources, the Finance Minister said. The government’s gross borrowing target for FY26 was revised upwards by 5.7 per cent to Rs 14.82 lakh crore from Rs 14.01 lakh crore in FY25.

In a major benefit for the middle class, Sitharaman announced that there will be no income tax on an annual income of up to Rs 12 lakh. For salaried people who enjoy a standard deduction of Rs 75,000, there would be no tax on income of up to Rs 12,75,000.

The move will place more money in the hands of the people to spend on goods and services which in turn would lead to higher growth in the economy.

In order to boost domestic manufacturing, she has also rationalised customs duties to increase tariffs on finished goods such as electronic products and reduce the duty on components used as inputs by local manufacturers.

The Finance Minister outlined specific proposals, starting with agriculture as the “first engine” to drive growth. Under the Prime Minister Krishi Yojana, a new initiative inspired by the success of the Aspirational District Programme, the government will launch an agricultural district programme in partnership with states. This will target 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The initiative is expected to benefit 1.7 crore farmers. The Finance Minister also announced an increase in the Kisan Credit Card (KCC) loan limit from Rs 3 lakh to Rs 5 lakh under the interest subvention scheme.

MSMEs have been identified as the second engine of growth, and the focus will be on the 5.7 crore MSMEs, which include over one crore registered businesses employing 7.5 crore people and contributing 36 per cent to India’s manufacturing. These MSMEs are crucial in positioning India as a global manufacturing hub, responsible for 45 per cent of the nation’s exports. To boost their growth and efficiency, the government will enhance the investment and turnover limits for MSMEs, increasing them by 2.5 times and 2 times, respectively. This move is expected to empower MSMEs to scale up, innovate, and generate more employment opportunities for the youth.

The Finance Minister announced that the government will implement specific policy and facilitation measures to boost the productivity, quality, and competitiveness of India’s footwear and leather sector products. This scheme is expected to create employment for 22 lakh people, generate over Rs 400 crore, and achieve exports of over Rs 1.1 lakh crore. In addition, measures will be introduced for the toy sector, building on the National Action Plan for Toys. A new scheme will aim to establish India as a global hub for toys, focusing on developing clusters, skills, and a manufacturing ecosystem that will produce high-quality, innovative, and sustainable toys, representing the “Made in India” brand, the Finance Minister said.

The Finance Minister emphasised investment as the third engine of growth, which includes investing in people, the economy, and innovation. As part of investing in people, the government is focusing on the Sashakt Anganwadi and Poshan 2.0 programmes, which provide nutritional support to over 8 crore children, pregnant women, lactating mothers, and around 20 lakh adolescent girls in aspirational districts and the Northeast region. The cost norms for these programs will be enhanced, Sitharaman added.

Business

Indian stock market closes higher; Adani Group shares surge

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Mumbai, May 5: The Indian equity markets opened the week with strong gains on Monday, supported by a rally in Adani Group stocks and strength in select auto and banking shares.

Sensex started the day around 160 points higher at 80,662 and climbed to an intra-day high of 81,049.

Although it gave up some of the gains later in the session, the index still ended 295 points up at 80,797.

The Nifty touched a high of 24,526 during the day and eventually closed with a gain of 114 points, or 0.5 per cent, at 24,461.

“Markets started the week on a firm footing, lifted by steady foreign inflows and optimism around an impending India-US trade deal,” said Vikram Kasat of PL Capital.

Strength in Asian currencies and easing global trade tensions added to the positive sentiment, even as activity remained muted in some global markets due to holidays, Kasat added.

The Adani Group was at the centre of investor attention, with shares jumping up to 11 per cent following reports of the company’s top executives holding discussions with officials from the US President Donald Trump administration.

Adani Ports was the top performer among Sensex stocks, soaring 6.3 per cent. Other gainers included Mahindra and Mahindra, ITC, Power Grid Corporation and Tata Motors.

On the other hand, Kotak Mahindra Bank fell 4.5 per cent, making it the biggest loser on the Sensex. SBI and Axis Bank also ended the day in the red.

The broader market outperformed the benchmark indices. The BSE MidCap index jumped 1.5 per cent, while the SmallCap index advanced by 1.2 per cent.

Among sectors, oil and gas stocks saw notable buying, with the BSE Oil and Gas index rising 2 per cent, driven by strength in oil marketing companies.

Consumer durables, energy, and FMCG sectors also posted gains of over 1 per cent each.

However, the BSE Bankex ended lower, down nearly 1 per cent due to pressure on select banking names.

“The upbeat start to the week reflects investor optimism, driven by corporate developments and select sectoral momentum,” market experts noted.

The rupee traded positive, gaining 13 paise to settle at 84.32 as sustained FII inflows continue to support the domestic currency.

“Going ahead, the rupee is expected to trade in a range of 84.00 to 84.75, with continued global risk sentiment and commodity movements guiding intraday volatility,” Jateen Trivedi of LKP Securities noted.

Gold prices surged sharply as expectations of an interest rate cut by the US Federal Reserve this week fuelled strong buying.

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Mumbai Airport Refutes IATA’s Claims On Cargo And Passenger Flight Slot Changes, Defends Operational Adjustments

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Mumbai: Days after airlines trade body IATA expressed disappointment at Mumbai airport operator MIAL’s decision to stop cargo freighter flights and withdrawal of slots for passenger flights, the airport refuted the claim on Thursday.

“Mumbai International Airport Ltd (MIAL) is disappointed by the statement issued by the IATA on April 29 and strongly refutes its assertions,” MIAL said in a statement. “Contrary to the claims made by IATA, the recent adjustments to cargo operations and slot allocations at Chhatrapati Shivaji Maharaj International Airport (CSMIA) have followed a transparent, consultative and regulatordriven process,” it said.

These operational changes are part of a broader infrastructure upgrade initiative governed by the Airports Economic Regulatory Authority of India (AERA) as part of the Fourth Control Period review, MIAL said. In a strongly worded statement on Tuesday, IATA’s Head of Worldwide Airport Slots, John Middleton, called on MIAL to reverse the cuts immediately.

“MIAL continues to respect international best practices, including the guidelines issued by the Worldwide Airport Slot Board and remains committed to maintaining coordination,” the private operator said.

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Together, we sail towards a stronger, bolder India: Gautam Adani

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Thiruvananthapuram, May 2: Gautam Adani, Chairman of the Adani Group, on Friday said he is grateful to Prime Minister Narendra Modi and Kerala Chief Minister Pinarayi Vijayan for their support towards building India’s first deep-sea automated port which is a future global transshipment hub, adding that together, “we sail towards a stronger, bolder India”.

This is a triumph of vision, resilience, and partnership, said Gautam Adani as PM Modi dedicated to the nation the Vizhinjam International Deepwater Multipurpose Seaport worth Rs 8,900 crore.

“Today, at Vizhinjam, history, destiny, and possibility came together as a 30-year-old dream of Kerala became India’s gateway to the world,” said the billionaire industrialist in a post on X.

“We are proud to have built India’s first deep-sea automated port. A future global transshipment hub. This is a triumph of vision, resilience, and partnership,” Gautam Adani added.

The Adani Group Chairman further stated that “together, we sail towards a stronger, bolder India.”

Vizhinjam Port, having strategic importance, has been identified as a key priority project that will contribute to strengthening India’s position in global trade, enhance logistics efficiency, and reduce reliance on foreign ports for cargo transhipment.

Its natural deep draft of nearly 20 metres and location near one of the world’s busiest sea trade routes further strengthen India’s position in global trade.

“A historic day. Grateful to the Central and State Governments, and the administration and people of Kerala, especially Thiruvananthapuram, for their support in making this port stand as a testament to India’s strategic and bold maritime ambitions,” said Karan Adani, Managing Director of Adani Ports and SEZ Ltd (APSEZ), in a post on X.

The port is expected to significantly lower logistics costs for Indian manufacturers by 30-40 per cent, enhancing the country’s export competitiveness.

With plans to increase capacity to 5 million TEUs by 2028 with the latest technology, the port is set to play a crucial role in India’s maritime infrastructure.

Working closely with the state government and the Central government, the Adani Group has already invested over Rs 4,500 crore in the Vizhinjam International Seaport project. The Adani Group is expected to invest another Rs 20,000 crore in the project’s upcoming phases, creating more than 5,000 jobs and boosting the local economy to unprecedented heights.

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