Riding on optimism, promising the riches

Optimism seems to be the key sentiment driving the FY26 Union Budget.

- Rajiv Kumar

This is reflected in the finance minister's (FM) assumption of 10.1% nominal gross domestic product (GDP) growth rate for the coming fiscal against the ministry of statistics and programme implementation (MoSPI)'s advance estimate of 9.7%. Similar optimism is reflected in the hope that the high-level committee announced for reducing the compliance, inspection and regulatory burden will suffice to perk up investors' confidence and the reduction in personal income tax rates, for the lower segments of the middle class will provide the much-needed boost to consumption demand.

Let's hope that this optimism is borne out as the year progresses, and economic growth remains resilient in the face of global headwinds that the Economic Survey saw as a major downside risk for the economy.