The countdown to Union Budget 2025 is underway, marking Finance Minister Nirmala Sitharaman's first budget under the NDA 3.0 government. According to advanced GDP estimates, India is poised for 6.4% growth in FY25. However, this signals the need for significant government intervention to revitalise manufacturing, one of the sectors hardest hit in recent times.

The Indian economy needs a long capital-expenditure cycle to keep GDP growth up. Policy measures must aim for more private investments, larger FDI inflows and a deeper corporate bond market that has long-horizon investors—like insurers and pension funds—as participants.

The upcoming Union Budget presents the Modi government with an opportunity to advance the narrative of economic stability, says Memani