For investors, financial planning post-budget will require adjustments based on tax changes and new investment avenues.
Quote on
Budget 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.”
