Budget looks impressive
Tirthankar Patnaik, PhD
(Chief Economis, National Stock Exchange of India Limited (NSE))
- simplified compliance: Income tax slabs unchanged; effective zero tax up to ~Rs12 lakh continues via existing rebates/deductions. Emphasis on compliance simplification (extended ITR deadlines, trust-based governance) and minor TCS cuts (foreign tours/education/medical under LRS to 2% from 5%).
- Growth engines: Infrastructure, manufacturing, MSMEs, exports, and strategic sectors as key drivers. Public capex up ~12% to Rs12.2 lakh crore; MSME growth fund (Rs 10,000 crore), cluster revivals, GeM-TReDS integration; targeted support for semiconductors (ISM 2.0), bio-pharma, rare earths, textiles, containers, and high-value agriculture to boost self-reliance, jobs, and exports.
- Ease of doing business and market deepening: New Income Tax Act 2025 rollout for simplification; foreign portfolio access eased for non-residents (individual limit to 10%, overall 24%); corporate bond reforms (market-making, total return swaps, bond index derivatives); municipal bond incentive (Rs 100 crore for issuances > Rs 1,000 crore); IFSC competitiveness enhanced.
- Impetus to infra and social capex: Capex on roads, railways (7 high-speed corridors), urban/tier-2-3 cities (Rs5,000 crore/year over five years), green initiatives (Rs 20,000 crore carbon capture over the next five years), and people-centric steps (skilling and tourism
Tirthankar Patnaik, PhD
Chief Economis
National Stock Exchange of India Limited (NSE
simplified compliance: Income tax slabs unchanged; effective zero tax up to ~Rs12 lakh continues via existing rebates/deductions. Emphasis on compliance simplification (extended ITR deadlines, trust-based governance) and minor TCS cuts (foreign tours/education/medical under LRS to 2% from 5%).
Growth engines: Infrastructure, manufacturing, MSMEs, exports, and strategic sectors as key drivers. Public capex up ~12% to Rs12.2 lakh crore; MSME growth fund (Rs 10,000 crore), cluster revivals, GeM-TReDS integration; targeted support for semiconductors (ISM 2.0), bio-pharma, rare earths, textiles, containers, and high-value agriculture to boost self-reliance, jobs, and exports.
Ease of doing business and market deepening: New Income Tax Act 2025 rollout for simplification; foreign portfolio access eased for non-residents (individual limit to 10%, overall 24%); corporate bond reforms (market-making, total return swaps, bond index derivatives); municipal bond incentive (Rs 100 crore for issuances > Rs 1,000 crore); IFSC competitiveness enhanced.
Impetus to infra and social capex: Capex on roads, railways (7 high-speed corridors), urban/tier-2-3 cities (Rs5,000 crore/year over five years), green initiatives (Rs 20,000 crore carbon capture over the next five years), and people-centric steps (skilling and tourism)
Tirthankar Patnaik
Chief Economist, NSE,
National Stock Exchange of India Limited (NSE)