Union Budget 2024 expectations: On Tuesday, July 23, Union Finance Minister Nirmala Sitharaman will unveil the Budget 2024. Expectations are high for a pro-growth budget that could potentially include populist policies meant to stimulate the economy of the rural areas and increase consumption.
According to Fisdom Research’s most recent report on Budget Expectations for FY25, there are strong expectations for significant reforms and strategic allocations as the National Democratic Alliance (NDA) administration prepares to announce its first full-year Union Budget following the 2024 elections.
With an emphasis on important sectors including infrastructure development, defense modernisation, rural development, healthcare, and taxes, the research paper presented the projected budgetary measures for FY25.
Fisdom Research thinks that these actions will ultimately contribute to the long-term objective of a successful and developed India by boosting social welfare, accelerating economic growth, and supporting numerous industries.
Let’s check the analysis provided by Fisdom Research on some of these sectors and stocks to keep an eye on.
Increased Capex Spending
According to Fisdom Research, sustained large capital investments in railways, urban development, power, and roads would provide long-term economic multipliers. Increasing public infrastructure will be the main goal in order to promote economic expansion and employment creation.
Stocks to watch are Larsen & Toubro (L&T), KNR Constructions, PNC Infratech.
Higher Railway Spending
Fisdom Research projects large investments to upgrade and extend the railway network, including new lines, station renovations, and the installation of contemporary trains.
Stocks to watch are Indian Railway Catering and Tourism Corporation (IRCTC), Container Corporation of India, Titagarh Wagons.
Modernisation of Armed Forces
According to Fisdom Research, more funding will be provided to promote indigenisation initiatives, cutting-edge technology acquisition, and military modernisation.
Stocks to watch are Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd.
Farmer Support and Agri-Infrastructure
Fisdom Research anticipates increased MSP for main crops, improved PM Kisan Samman Nidhi, and the growth of agricultural infrastructure, including facilities for processing, storage, and irrigation.
Stocks to watch are Mahindra & Mahindra Ltd, Escorts Ltd, UPL Ltd.
Renewable Energy Investments
Increased funding for clean energy technology, solar and wind power project development, and promotion of renewable energy sources are all anticipated by Fisdom Research.
Stocks to watch are Tata Power Ltd, Adani Green Energy Ltd, NTPC Ltd.
Personal Income Tax
According to Fisdom Research, income tax slabs would be revised to help the middle class. This may entail raising the basic exemption level and modifying the income criteria for different tax rates. In order to accommodate for inflation, it is anticipated that the Section 80C deduction cap, which was last reviewed in 2014, would be raised, providing additional chances for individuals to save taxes. We could also witness adjustments to the capital gain structure and an increase in the standard deduction. Even while it seems improbable that all of these developments will take place at once, it is not impossible for any one of them to happen.
Stocks to watch are Hindustan Unilever, Nestle India, Marico, Avenue Supermart, Titan Company.
Green Initiatives
According to Fisdom Research, green hydrogen initiatives and infrastructure that prioritises sustainability will get support, along with financial incentives for battery energy storage systems.
Stocks to watch are Inox Wind Ltd, Suzlon Energy Ltd.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
