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2026-02-03 11:09:11 am | Source: SmartWealth AI
Perspective on Union Budget by Pankaj Singh, investment manager on smallcase, Founder and Principal Researcher, SmartWealth AI
Perspective on Union Budget by Pankaj Singh, investment manager on smallcase, Founder and Principal Researcher, SmartWealth AI

Below Perspective on Union Budget by Pankaj Singh, investment manager on smallcase, Founder and Principal Researcher, SmartWealth AI

 

Over the past year, the government has focused on simplifying tax structures and increasing infrastructure investment to boost consumption and corporate growth. These priorities continue in the current budget, with public capital expenditure rising to Rs.12.2 lakh crore from Rs11.2 lakh crore in 2025–26, reinforcing the commitment to long-term growth.

 

The budget outlines targeted interventions across six key areas: scaling up manufacturing, rejuvenating legacy industries and sunrise sectors, strengthening MSMEs, accelerating infrastructure development, enhancing security and stability, and developing city eco-regions. Manufacturing is positioned as a central growth driver, with long-term potential for multi-fold expansion and strategic support for sectors such as defence through dedicated corridors.

 

Alongside growth initiatives, the government is pursuing fiscal discipline, with the fiscal deficit projected to decline from 4.4% to 4.3% and the debt-to-GDP ratio improving from 56% to 55.6%.

 

Overall, the budget reflects policy stability and strategic recalibration to drive structural transformation aligned with the vision of Viksit Bharat by 2047. It remains positive for equity markets and supportive of portfolio performance over the medium to long term.

 

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