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The meeting on Thursday brought together senior government officials, including the finance secretary, secretaries of economic affairs, financial services, and DIPAM, as well as the chief economic adviser.
Union Finance Minister Nirmala Sitharaman chairs the seventh Pre-Budget consultation with the stakeholders from the financial sector and capital markets.
In a series of pre-budget consultations with industry players, Finance Minister Nirmala Sitharaman on Thursday conducted her seventh pre-Budget meeting with key stakeholders from the financial sector and capital markets. Sitharaman is slated to present the upcoming Union Budget 2025-26 on February 1. However, offcial announcement is yet to be made.
The meeting on Thursday brought together senior government officials, including the finance secretary, secretaries of economic affairs, financial services, and DIPAM, as well as the chief economic adviser. These consultations are pivotal for aligning fiscal policies with economic priorities for the upcoming financial year.
Sitharaman’s pre-Budget engagements have spanned diverse groups, including representatives from MSMEs, economists, and agricultural associations. Additionally, Prime Minister Narendra Modi recently hosted discussions with leading economists and thought leaders at NITI Aayog, emphasizing the collaborative approach in shaping economic policies.
This year’s Budget comes amid slowing economic momentum, with India’s GDP growth dipping to 5.4% in Q2 FY25, below the Reserve Bank of India’s (RBI) forecast of 7%. Q1 FY25 growth also fell short, prompting the RBI to lower its annual growth projection to 6.6% from 7.2%.
Nevertheless, high-frequency data for October-December 2024 indicates signs of recovery, driven by festive spending and improved rural demand. The RBI, in its latest bulletin, highlighted this as a promising trend, despite earlier headwinds.
India’s overall economic resilience remains a strong point, achieving an 8.2% growth rate in FY24, retaining its position as the fastest-growing major economy. This follows robust growth of 7.2% in FY23 and 8.7% in FY22.
As Sitharaman prepares to unveil her eighth Budget, expectations are high for strategies addressing current economic challenges while ensuring long-term growth. This Budget is also seen as a crucial milestone for the Modi government as it approaches the final phase of its current tenure.
