New Delhi: Indian youth, as well as from Prime Minister Narendra Modi’s allies, stand to gain the most from the Union Budget for FY 2024-25, said a report in Bloomberg titled, ‘Winners and Losers From Modi’s First Budget After Reelection’, by journalists Satviki Sanjay and Alex Gabriel Simon.
The report, which discussed the budget tabled in Parliament Tuesday by Union Finance Minister Nirmala Sitharaman, said the document is focused on bolstering job creation and supporting local businesses and infrastructure while maintaining fiscal discipline.
It highlighted that the government revised the fiscal deficit target down to 4.9 percent of GDP and introduced a new tax regime benefiting lower income earners.
Infrastructure, added the report, received a substantial boost with increased spending pledges, while middle-class taxpayers benefited from revised tax slab limits and higher standard deduction.
But, the equity markets reacted negatively to increased capital gains taxes, while the real estate sector faced challenges despite some tax adjustments. The report also said that a lack of incentives for EV manufacturers came as a disappointment for the sector.
“Finance Minister Nirmala Sitharaman has shown a commitment to fiscal consolidation while for the most part placating the BJP’s coalition partners in today’s FY24/25 Union Budget announcement,” Shilan Shah, deputy chief emerging markets economist at Capital Economics, told Bloomberg.
The Modi government, facing the loss of its parliamentary majority after the Lok Sabha polls, unveiled a budget aimed at securing support from coalition partners and boosting public morale, said a report by Benjamin Parkin and Chris Kay in Financial Times, titled, ‘India unveils spending binge to boost Narendra Modi’s allies’.
Sitharaman, said the report, highlighted India’s economic resilience amidst global slowdown, projecting growth between 6.5 percent and 7 percent.
It further highlighted significant allocations including Rs 260 billion for infrastructural development in Bihar and Rs 150 billion for the development of a capital city in Andhra Pradesh.
Andrew Holland, chief executive of Mumbai-based Avendus Capital Public Markets Alternate Strategies, told FT that the budget was likely to “alleviate any worries about any coalition problems”.
“A lot of the RBI dividend has obviously gone towards rural development, jobs and Andhra Pradesh and Bihar,” he was quoted as saying.
Prime Minister Narendra Modi plans to “raise spending to create more jobs and spur economic growth,” said a report by Associated Press journalist Sheikh Saliq, also published in The Washington Post. The report, titled, ‘India’s Modi focuses on jobs creation in first budget after winning polls’, highlighted that the budget is aimed at bolstering economic growth while aiming to “appease” coalition partners “it needs to stay in power”.
Sitharaman, said the report, highlighted plans to stimulate domestic growth through job creation and support for small businesses, amidst stable inflation and robust economic growth.
It added that the budget also includes significant allocations for housing, infrastructure, and tax cuts for corporations, while also catering to coalition partners in Bihar and Andhra Pradesh.
However, challenges remain, including persistent youth unemployment and growing income inequality, despite efforts to create jobs and reduce fiscal deficit, said the report.
“More than a decade after he first took office as prime minister, Modi is under pressure to generate more jobs to help sustain growth,” it read.
A report by Akhilesh Pillalamarri in The Diplomat, titled ‘What a Trump-Vance Administration Would Mean for India’, dove into the possible impact on India-US ties in case of a second Trump presidency.
The report said that the potential Trump-Vance administration promises a shift in US foreign policy, focusing on realist approaches and emphasising bilateral relationships like that with India, while showing scepticism towards China. Vance’s advocacy against sanctions on India and support for closer ties align with Trump’s views, suggesting a policy favouring transactional engagements over ideological stands. Just like Kamala Harris, Vance also has an Indian connection as his wife, Usha Chilukuri Vance, is the daughter of Telugu-speaking Indian immigrants from Andhra Pradesh.
This could work in India’s favour, the report noted. “At the most basic level of public relations, a Trump-Vance administration is unlikely to ruffle any feathers in India by lecturing or berating Indian governments about civil and human rights-related issues, or comment on social, economic, and political trends.”
State Senator Niraj Antani of Ohio, an ally of Vance, was quoted as saying, “US-India relations were good under Trump, who stayed neutral on many Indian political issues. Biden, by contrast, has criticised India’s Citizenship Amendment Act and the abrogation of Article 370.”
Harris vs Trump, Palestinian truce
Kamala Harris has secured the support of enough delegates to become the Democratic nominee for the November presidential elections. After years of planning to fight against President Joe Biden, Donald Trump will now be campaigning against Harris. Will this bring out his harshest instincts? To know more, read the latest report by The New York Times.
Palestinian factions, Hamas and Fatah, have signed a “national unity” agreement aimed at maintaining Palestinian control over Gaza after the end of Israeli military action in the enclave. Read the latest report by Al Jazeera.
(Edited by Amrtansh Arora)
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