Balancing fiscal prudence, growth

The Union Budget FY26 is a pragmatic approach towards keeping fiscal discipline at the core, while nudging growth forward.

- RASHESH SHAH, CHAIRMAN, EDELWEISS GROUP

It reassures global investors, keeps India's debt under check, and ensures financial stability – but the real question will be about how effectively it can stimulate demand and investment, help India reach 8% real GDP growth, and 11-12% nominal GDP growth?

A major highlight is income tax changes, which raise the exemption limit to ₹12 lakh, as well as the simplification of the Income Tax code. This will inject vitality into urban consumption – a lever for demand revival. Coupled with targeted subsidies, these measures could spur enhanced disposable income and, in turn, encourage spending in housing, education, and retail.

A significant reform is raising the FDI limit to 100% in the insurance sector, which will deepen financial penetration and attract foreign capital. While domestic banks face capital constraints, this reform positions India as a magnet for strategic investors, aligning with the 'Insurance for All by 2047' vision.