India’s forthcoming central budget is set to reinforce fiscal discipline, macroeconomic balance, and aggressive pushes into technology sectors, according to expert analysis. Anit Mukherjee, a veteran researcher at ORF America, expects the government to stick to its proven playbook midway through its tenure.
In an in-depth discussion, Mukherjee emphasized that bold overhauls are unlikely; instead, the budget will extend policy continuity. A prime example is the revamp of longstanding rural employment initiatives, moving beyond direct payments to empower livelihoods.
‘This shift is timely after 20 years, as economic structures have evolved,’ he observed. States gain more leeway in execution, backed by upgraded monitoring systems, ensuring the scheme’s foundational promise of crisis-time jobs endures amid climate challenges.
Revenue streams hold firm despite tax reliefs like GST slashes. External trade steadiness fuels positive outlooks, with Mukherjee pushing for trade diversification. New partnerships could fortify the current account, sidestepping overdependence on select economies.
Crucially, ramped-up public spending in AI and high-tech domains is essential where India excels. US trade measures have immediate effects, countered by protective steps at home. Prospects for an India-US FTA brighten economic horizons.
The Finance Minister’s strategy will likely center on unwavering macroeconomic targets, blending reforms with sustained investments for robust growth.