MANUFACTURING PUSH AND CREDIBLE FISCAL MATH

'Y27 budget was keenly watched to see policy changes in light of new world order.

- DEVENDRA KUMAR PANT

With income tax cut in last budget and GST rationalisation with effect from September 22, 2025, expectations on personal taxation and GST front were negligible. The reform agenda towards accelerating and sustaining growth revolves around six key areas: i) scaling up manufacturing in seven strategic and frontier sectors; ii) rejuvenation of legacy industrial sectors; iii) creating “champion MSMEs”;

iv) powerful push to infrastructure; v) ensuring long-term energy security and stability; and vi) developing city economic regions. Seven strategic sectors identified are — biopharma, semiconductor, electronics component manufacturing, rare earth, chemicals, capital goods and textiles.

In area of ease of doing business initiates such as: new income tax act 2025 will be rollout for simplification and foreign portfolio access proposed to be eased for nonresidents.

The proposals such as municipal bond incentive (%1 billion for issuance of more than %10 billion municipal bonds is proposed for improving ease of living in cities and help in developing city economic regions.