Budget 2024 Expectations: Deloitte Suggests PLI Scheme Expansion for Job-Intensive Sectors
Image Source: Business Today
Finance Minister Nirmala Sitharaman is set to present the interim budget for the fiscal year 2024-25 in the Lok Sabha on February 1st. The Indian equity markets, after touching fresh record highs earlier in January, are seeing a correction two weeks ahead of the Interim Budget Presentation on February 1st. Even though no major announcements are expected since it is a vote on account budget, increased volatility has been observed as investors remain uncertain, said analysts.
“As we anticipate the upcoming Union Budget 2024, our expectations are aligned with the current global economic landscape. We foresee stability in corporate tax rates, considering that India’s corporate tax rates are already in harmony with global standards,” said Atul Thakker, Managing Director – Minosha India Ltd.
Ahead of the interim budget, Ondrej Kubik, Chief Executive Officer, Home Credit India, said, “We anticipate significant impact from the government’s initiatives to further strengthen the manufacturing sector and boost capital expenditure, foreseeing positive implications for India’s economic trajectory.”
Market participants are hopeful that the government will persist in spending on infrastructure and attracting private sector funds. Investors express optimism regarding the government’s continuation of the previous year’s strategy, focusing on long-term investments in infrastructure and a commitment to fostering sustainable economic growth.
The Sensex exhibited varied movements after the 2019 vote on account budget. It experienced nearly a one percent decline in one month, whereas it surged over six percent in the same period following the 2014 Interim Budget.
In the three months after both budgets, however, the Sensex registered handsome gains. The 30-share index rose nearly seven percent in 2019 and over 19 percent in 2014.
“We do not expect any major policy announcements by the government since it is a vote on account budget. Thus, market movement will not be significantly determined by the outcome of the budget,” Nishit Master of Axis PMS said.
Echoing this, Shrey Jain, Founder, and CEO SAS Online, added that investors will be watchful if the vote on account offers fresh lines of freebies to woo voters. “Both Narendra Modi-led governments have been fiscally prudent so far. Broad markets should take cues from the earnings season and the monetary policy review announcement due on February 8th,” he said.
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