The Federation of Indian Chambers of Commerce and Industry (FICCI), in association with Centre for Public Policy Research (CPPR), The Cochin Chamber of Commerce & Industry, Geojit Financial Services Ltd., Datamate Info Solutions Ltd. and ICICI Bank organised the Post Budget Analysis Session on Union Budget 2025-26: “Critical Analysis and Way Forward for Indian Economy” on 3rd February, 2024.

Key Takeaways

• Dr Mridul Saggar, Professor, IIM Kozhikode and Former Executive Director, RBI & MPC Member asserted that fiscal policy holds more power than monetary policy. Praising the Finance Minister for staying committed to fiscal consolidation, he noted that the budget was introduced amid an economic slowdown, which could have been partially alleviated if liquidity tightening hadn’t been so stringent.

• Mr Sony Mathews, Senior Market Strategist, Geojit Financial expressed optimism that tax reforms will lead to more disposable income, which he believes will be channeled into SIP investments by the middle class. He also emphasized that a disciplined and systematic approach to investing is key to long-term success.

• Mr Joydeep Roy from PwC highlighted the need for reforms in pension and annuity schemes, noting that while India’s median age is currently at 29, it will be in the 40s by 2050, and life expectancy is expected to rise to 83. This shift will lead to a significant portion of the budget being allocated to post-employment benefits.

• Mr Aravind Divakaran and Mr Hari Ganesh also from PwC discussed key changes in direct and indirect taxes. Mr Aravind welcomed the move to make income tax effective up to 12 lakh nil, and exempting tax from the second residential house by considering it self-occupied, which could boost market liquidity and drive more spending. Mr Hari pointed out that while the budget seemingly emphasizes ease of doing business, some of the indirect tax proposals may be likely to increase compliance burdens.

Image Gallery