There is a lot of enthusiasm among investors and general public about India’s upcoming budget 2025. This budget can have a profound impact on the country’s economy and financial markets. Some important decisions are expected in this budget, which can take the stock market to new heights.
In this article, we will discuss the three major decisions of Budget 2025, which the investors are eyeing. At the same time, we will also know what can be the impact of these decisions on the stock market and will it take the market up like a rocket.
Budget 2025 overview
| Description | Information |
| Budget year | 2025-26 |
| Presentation date | 1 February, 2025 |
| Finance minister | Name (not announced yet) |
| Budget type | Full budget |
| Focus area | Economic Development, Employment Creation, Digital Infrastructure |
| Estimated budget size | About 50 lakh crore rupees |
| Fiscal deficit target | 5.5% of GDP |
| Growth rate estimate | 7-7.5% |
3 important decisions of budget 2025
1. Change and exemption in tax slab
In the budget 2025, the government is expected to have a major change in the income tax slab. This decision may be a relief for middle class and taxpayers. The proposed changes can be as follows:
- No tax on income up to Rs 5 lakh
- 10% tax on income of Rs 5-10 lakh
- 20% tax on income of Rs 10-20 lakh
- 30% tax on income of more than Rs 20 lakh
In addition, the government can increase the investment limit to Rs 2.5 lakh under 80C. This decision will encourage people to save more and investment.
These changes can have a positive impact on the stock market. Tax exemption will have more spending income, which will increase consumption and increase the revenue of companies. This may boost the shares of FMCG, Auto and Retail Sector.
2. Focus on infrastructure
In Budget 2025, the government can pay special attention to infrastructure development. Under this, big investment can be announced in the following areas:
- Road and highway construction
- Expansion of railway network
- Smart city projects
- New airports and ports
- Green Energy Projects
The government can allocate about Rs 10 lakh crore for these projects. This will not only strengthen the infrastructure of the country, but will also create new employment opportunities.
This decision will have a widespread impact on the stock market. Shares of infrastructure, cement, steel and construction companies may rise. Also, banking and finance sectors can also be benefited, as these projects will require mass funding.
3. Promoting manufacturing sector
In Budget 2025, the government may give special encouragement to the manufacturing sector to further strengthen the Make in India and the self -sufficient Bharat Abhiyan. The following measures can be taken under this:
- Corporate tax cut for manufacturing companies
- Subsidy and tax holidays for setting up new industries
- Special package for electronics and semiconductor manufacturing
- Extension in export incentive schemes
These measures will increase the manufacturing output in India and the country will be able to become an important center in the global supply chain.
This decision can promote shares of manufacturing, auto, pharma and chemical sector companies. In addition, employment generation will speed up the economy, which will benefit the stock market as a whole.
Budget 2025 possible impact on the stock market
The above three major decisions of Budget 2025 can have a deep and far -reaching impact on the stock market. Here we will analyze this effect in detail:
Sector-wise effect
- FMCG and Retail: Tax exemption will increase consumers’ spending capacity, which will increase the revenue of companies of these sectors. Shares of companies like HUL, ITC, Titan can be attractive.
- Infrastructure and Construction: Companies like L&T, Ultratech Cement, ACC will benefit from large investment of the government.
- Banking and Finance: The demand for large loans for infrastructure projects will increase, which will benefit banks like HDFC Bank, SBI, ICICI Bank.
- Manufacturing: Companies like Tata Motors, Maruti Suzuki, Sun Pharma can benefit from government encouragement.
Market cap-wise effect
- Large Cap: Large and established companies will be able to take advantage of government policies, which will bring stability in their shares.
- Mid Cap: Medium -sized companies can grow rapidly, especially in manufacturing and infrastructure sector.
- Small Cap: Small companies will get new opportunities, but the risk will also be high. Selected small cap shares can give big returns.
Effect on index
- Sensex and NIFTY: Both major indexes can touch new heights with the positive impact of the budget. By the end of 2025, you can cross the Sensex 100,000 and NIFTY 30,000 levels.
- Sectoral Index: Sectoral index like Nifty Bank, Nifty Auto, Nifty FMCG can be accelerated.
Strategy for investors
Investors should formulate their strategy in view of the budget 2025. Here are a few suggestions:
- Diversification: Spread your portfolio in various sectors so that the risk is reduced.
- Long -term approach: It will take time to feel the impact of the budget, so be patient.
- Quality Stocks: Focus on shares of companies with strong fundamentals.
- Continue SIP: Regular investment will help in facing market volatility.
- Look at new sectors: Find opportunities in emerging sectors like green energy, electric vehicles.
Rejuvenation: This article is only for informative purposes and should not be taken as financial advice. The information given about the budget 2025 and its effects is based on estimates and analysis. The actual budget announcements and their effects may vary from this. Always consult a qualified financial advisor before taking decisions related to investment. The writer or publisher will not be responsible for any loss or loss that can be from the use of this information.
