IGI Logo

Below the Quote on Budget 2025-26 by Sonam Srivastava, smallcase Manager, and Founder of Wright Research

“The Union Budget 2025-26 presents a well-balanced approach between fiscal prudence and growth-oriented measures, which is expected to have a positive impact on the Indian markets. The government’s commitment to infrastructure spending, MSME support, and private sector participation indicates a continued push for economic expansion. The emphasis on capital expenditure, asset monetization, and policy reforms, such as raising the FDI cap in the insurance sector, should enhance investor sentiment and attract foreign investments. Additionally, the focus on manufacturing and exports, coupled with targeted incentives for sectors like technology, renewable energy, and defense, could create new growth opportunities. However, fiscal discipline remains a key factor, and the projected fiscal deficit trajectory will be closely monitored by the market. If the government manages to strike the right balance between spending and revenue generation, it could lead to a stable and positive market outlook.

For investors, financial planning post-budget will require adjustments based on tax changes and new investment avenues. The rationalization of direct taxes, especially for the middle class, along with increased exemptions for savings and investments, offers greater disposable income and encourages long-term wealth creation. The enhanced credit availability for MSMEs and startups, along with incentives for long-term infrastructure investments, could create new opportunities in equity and fixed-income markets. Investors should assess sectoral implications—sectors benefiting from government policies, such as infrastructure, manufacturing, and fintech, may see an uptick in investment flows. Additionally, tax-saving instruments, such as revised deduction limits for senior citizens and rental income, should be factored into portfolio rebalancing. Given the evolving macroeconomic environment, a diversified investment strategy with exposure to equity, fixed income, and alternative assets will be crucial for optimizing returns while mitigating risks.”

Above views are of the author and not of the website kindly read disclaimer