Pic/ PTI
Union Finance Minister Nirmala Sitharaman on Saturday departed from North Block for Rashtrapati Bhavan, carrying her trademark 'bahi-khata' - a tablet wrapped in a red cloth with a golden-coloured national emblem embossed on it - signifying the continuity of tradition and modernity in India's financial framework.
Sitharaman is set to present her historic eighth consecutive budget at 11 am in the Lok Sabha, a landmark achievement in itself. As per ANI, the budget speech is expected to unveil the government's fiscal policies, revenue and expenditure plans, taxation reforms, and various significant economic measures aimed at sustaining India's growth momentum.
Accompanying the Finance Minister were Union Minister of State for Finance, Pankaj Chaudhary, Chief Economic Advisor Dr V. Anantha Nageswaran, and other senior officials from the Finance Ministry. Their presence underscored the significance of this financial blueprint for the upcoming fiscal year.
According to ANI, the Economic Survey, which was tabled in Parliament on Friday, projected that India's GDP is likely to grow between 6.3 per cent and 6.8 per cent in the financial year 2025-26. The survey emphasised that India's economic fundamentals remain resilient, bolstered by a stable external account, fiscal consolidation measures, and strong private consumption.
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It further stated that the government is keen on strengthening long-term industrial growth, particularly by investing in research and development (R&D), micro, small and medium enterprises (MSMEs), and capital goods. These strategies aim to drive innovation, productivity, and global competitiveness, ensuring that India remains a key player in the international market.
As per ANI reports, the survey indicated that food inflation is expected to ease in the final quarter of FY25, aided by a seasonal decline in vegetable prices and the arrival of the Kharif harvest. Additionally, a strong Rabi production is anticipated to help stabilise food prices in the first half of FY26. However, the survey also warned that adverse weather patterns and rising international agricultural prices could pose risks to inflation control.
India's foreign exchange reserves, a key indicator of financial stability, remain robust. ANI reports that these reserves covered 90 per cent of the country's external debt, providing an import cover of over ten months. The reserves surged from USD 616.7 billion in January 2024 to USD 704.9 billion in September 2024, before moderating to USD 634.6 billion as of 3rd January 2025. The stability in capital flows has played a crucial role in maintaining India's external economic strength.
In terms of employment, ANI reports that the formal sector has witnessed substantial growth, particularly in Employees' Provident Fund Organisation (EPFO) registrations. The survey revealed that net EPFO subscriptions more than doubled, rising from 61 lakh in FY19 to 131 lakh in FY24, reflecting a notable increase in job creation and formalisation of the workforce.
With the Finance Minister set to deliver her budget speech shortly, all eyes are on the government's fiscal roadmap for the year ahead, particularly in light of its emphasis on economic resilience, industrial expansion, and sustainable growth.
