(India, 1st) The Indian government will announce its annual budget plan on Sunday, and it is expected to strengthen domestic policy reforms to cushion economic uncertainties amid the U.S. significantly raising tariffs and broader geopolitical tensions.
According to Reuters, Indian Finance Minister Nirmala Sitharaman will present the budget for the next fiscal year on Sunday (February 1) at 11am local time (1:30pm Malaysia time).
Given that tax cuts are expected to reduce this fiscal year's revenue by 1.5 trillion rupees (RM353 million), she must control fiscal spending as a share of the Gross Domestic Product (GDP).
The Indian government's fiscal deficit target for the new fiscal year is set at 4.4% of GDP.
On Thursday (January 29), ahead of the government's release of the economic survey report, Prime Minister Modi said: "The nation is emerging from longstanding problems and is moving towards long-term solutions. Long-term solutions provide predictability and enhance international confidence in India."
The report forecasts India's economic growth, starting from April in the new fiscal year, to be between 6.8% and 7.2%.
Modi pointed out that the next 25 years are crucial for India's goal of becoming a developed economy, and the country will continue to advance "next-generation reforms."
To stimulate private investment and demand, New Delhi has rolled out a series of reforms in recent months, including reductions in consumption and income taxes, revisions to labor laws, and opening up the tightly regulated nuclear power sector. The budget is expected to announce additional policy adjustments.
After India and Pakistan recently experienced a brief deadly conflict, the Ministry of Defense hopes to increase military spending by 20%.
At the same time, the government is expected to relax investment regulations in the defense manufacturing sector.
Given that tax cuts are expected to reduce this fiscal year's revenue by 1.5 trillion rupees (RM353 million), she must control fiscal spending as a share of the Gross Domestic Product (GDP).
The Indian government's fiscal deficit target for the new fiscal year is set at 4.4% of GDP.
On Thursday (January 29), ahead of the government's release of the economic survey report, Prime Minister Modi said: "The nation is emerging from longstanding problems and is moving towards long-term solutions. Long-term solutions provide predictability and enhance international confidence in India."
The report forecasts India's economic growth, starting from April in the new fiscal year, to be between 6.8% and 7.2%.
Modi pointed out that the next 25 years are crucial for India's goal of becoming a developed economy, and the country will continue to advance "next-generation reforms."
To stimulate private investment and demand, New Delhi has rolled out a series of reforms in recent months, including reductions in consumption and income taxes, revisions to labor laws, and opening up the tightly regulated nuclear power sector. The budget is expected to announce additional policy adjustments.
After India and Pakistan recently experienced a brief deadly conflict, the Ministry of Defense hopes to increase military spending by 20%.
At the same time, the government is expected to relax investment regulations in the defense manufacturing sector.