The center was creating an ecosystem for investing in Japan and foreign countries, and the Minister of Finance Nirmala Citaraman urged the private sector to go back and forth. The Minister added that banks and companies are healthy and suggest that private investment is right.
Economic Survey, an economic status report, emphasizes that it is necessary to make up for the federal government’s efforts in the “heartfelt acceptance” regarding the necessity of public -private partnerships in infrastructure nationwide.
Capital spending or Capex is used to set up long -term physical or fixed assets. From 2024 to 25 years, the central government spent a 11.11 thousands of lupplements. This was 11.11 % from the previous year.
Building infrastructure -physical, digital, and social- has become a central focus of the government in the past five years. This includes a variety of aspects, such as an increase in public expenditures on infrastructure, creating an institution for approval and execution of bottlenecks, and innovative modes for resource mobilization.
“We are creating an ecosystem for increasing the role of public sector and having policies like investment. We are creating an ecosystem for domestic and foreign investments. As a result, ecosystem We are supporting the construction of, “said Sitharaman, an exclusive interview that he told NDTV.
The significant increase in Capex is the center of the government’s efforts that enhance the potential and employment creation, acquire crowds in private investment, and provide cushions for global headwinds.
The government announced the largest tax easing in at least 10 years to increase the demand for consumers to revive the fifth largest economy in the world on Saturdays, and worked on millions of households for millions of households. I gave a great rescue to being.
India’s economic growth is expected to decline in four years in this fiscal year due to weak demand, especially in urban areas where living expenses have so far increased. Nirmala Sitharaman increases disposable income with new structures, increase household consumption, savings and investment, and increase investment.
“The corporate tax rate was reduced in 2019 due to the problem of the twin balance sheet. Banks and companies are now healthy. They are waiting for passive investment. Increasing consumption and significant investment. If there is a possibility, it may be a good trigger.
According to HDFC Bank’s report, federal budget 2025 focuses on supporting low -income households and middle -income households may help the economy to revive.
The report emphasized that consumer demand was weak and affected corporate emotions, but the latest budget measures may provide the necessary promotion to stimulate economic growth.
“Promotion of high -tendency to consumption and middle -income households may provide a very necessary emotional boost to guide a private investment cycle,” he said.
The report states that capital spending generally has a stronger effect on economic growth compared to tax reduction. However, the demand for consumers is weak and fragmented is an important factor that hinders investing in a private sector.
Since the COVID-19 Pandemic, the government has rapidly raised capital spending to hopefully recovering investment. With stubborn inflation and modest wages, shoppers have tightened their wallet strings, and the consumption of the Indian economy has been stressed in the past few quarters.
“The margin is leaning to support consumption through middle -class family tax cuts compared to public maintenance pushes found in the past four years,” he said. Sonalbarma said.
Badal Yagnik, the CEO of India Colliers, said that the rationalization of taxes and exemption restrictions, in particular, could promote disposable income, consumption levels, and real estate investment in alternative financial products such as real estate and REITs in houses. I said there was.
The government has also created room for housing owners to claim that two self -occupied property is tax -exempt.
