Union Budget 2025 Reactions | 'Positive for FMCG, consumption, retail, realty, auto, and new age companies,' says Manish Jain, Chief Strategy Officer, Mirae Asset Capital Markets

'Rise in gross borrowings is a negative for banks as yield could rise which could impact treasury income,' he said.

Finance Minister Nirmala Sitharaman tabled the much anticipated Union Budget for FY 2025-26 on February 1, which also marked a record 8th Budget presentation for the 65-year-old. In a major relief to the middle class, Sitharaman announced that there would not be any tax liability on income upto Rs 12 lakh for salaried persons under the new tax regime and raised the basic exemption from Rs 2.5 lakh to Rs 4 lakh.

Speaking on this front, Manish Jain, Chief Strategy Officer, Institution Business, Mirae Asset Capital Markets, said, "Overall, positive for FMCG, consumption, retail, realty, auto and new age companies. Not as much positive for banking. Rise in gross borrowings is negative for banks as yield could rise which could impact treasury income. Fiscal deficit target at 4.8 per cent for FY25, and 4.4 per cent of GDP for FY26."

"With rationalization in direct taxes, one needs to see how government capex targets are set. Move in personal taxes and reduction in BCD in consumer electronics (like flat panels) to boost consumer electronics. Positive for shipbuilding with Maritime Development Fund outlay of Rs 25,000, exemption of BCD on raw material and equipment and benefits to ship leasing units announced if they are in GIFT city."

"Announcements on PM Gati Shakti Data and Maps are positive for logistics players. Announcement of daycare cancer centres in district hospitals is positive for regional diagnostics companies. Promotion in medical tourism is positive for large hospitals. Increase in FDI limit in insurance sector to 100 per cent is positive for investments in the sector. Positive move on critical minerals and BCD exemption for EV batteries to promote EV battery manufacturing in India and also positive for battery chemical manufactures," Jain added.

Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.