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Below Quote on Budget By Mr. Vinay Pai, Head Fixed income, Equirus Capital 

Gross market borrowing is pegged at ?17.2 lakh crore, slightly higher than the expected ?16.8 lakh crore, including over ?1 lakh crore in bond switches. Net borrowing, however, remains contained at ?11.7 lakh crore. As a result, bond markets may witness a marginal uptick in yields, with the 10-year benchmark expected to move towards the 6.74–6.75% range, while the rupee could see some depreciation towards 93 against the US dollar.

Fiscal prudence remains central, with a long-term objective of reducing the debt-to- GDP ratio to 50% (±1%) by FY 2030–31. The Budget also proposes the formation of a high-level banking committee to support the next phase of growth. Key capital market reforms include the introduction of a market-making framework, improved access to funds and derivatives on corporate bond indices, total return swaps on corporate bonds, and increased focus on debt markets, including support for municipal bond issuance.

 The Budget places strong emphasis on futuristic sectors such as data centres and the orange economy, fostering trust and enabling Indian industries and service providers to become globally competitive. With multiple Free Trade Agreements signed across regions, the focus now shifts to effective implementation—translating these landmark deals into tangible outcomes by strengthening key growth sectors.

MSMEs remain a priority, supported through enhanced credit guarantee schemes and improved access to liquidity via the TReDS platform.  

The Viksit Bharat Budget adopts an inclusive approach aimed at accelerating and sustaining economic growth while addressing the aspirations of a rapidly growing population. It seeks to ensure that every family, community, region, and sector has equitable access to resources, infrastructure, and opportunities for meaningful participation in the economy.

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