Finance Minister Nirmala Sitharaman met key stakeholders from the financial sector and capital markets on Thursday as part of her pre-budget consultations for the Union Budget 2025-26. The meeting was attended by senior officials, including the Finance Secretary, the secretaries of DIPAM, the Department of Economic Affairs, and the Department of Financial Services, as well as the Chief Economic Adviser.
This consultation marked the seventh in her ongoing series of pre-budget meetings. The Finance Ministry organizes these discussions annually, inviting inputs from experts, industry leaders, economists, and state representatives as part of the formal budget preparation process. This year, Sitharaman has already engaged with a diverse range of stakeholders, including representatives from MSMEs, farmers’ associations, and leading economists.
Prime Minister Narendra Modi has also been actively involved in pre-budget deliberations. Last week, he held discussions with eminent economists and thought leaders at NITI Aayog, focusing on shaping the economic roadmap for the Union Budget 2025-26.
The Union Budget for the financial year 2025-26 is scheduled to be tabled on February 1, 2025, and will be Sitharaman’s eighth. Given the current economic backdrop, the upcoming budget is expected to be closely watched for its key announcements and long-term guidance, as the Modi government enters the latter part of its third term.
India’s economic performance has been under scrutiny due to recent weak GDP data and subdued consumption. The economy grew by 5.4% in real terms during the July-September quarter of FY 2024-25, significantly below the Reserve Bank of India’s (RBI) forecast of 7%. The April-June quarter also saw slower-than-expected growth. Consequently, the RBI revised its growth projection for FY 2024-25 from 7.2% to 6.6% during its latest monetary policy review.
The Economic Survey tabled earlier this year projected a cautious GDP growth rate of 6.5-7% for FY 2024-25. The Survey acknowledged the market’s higher expectations but tempered optimism by highlighting inflation-adjusted metrics. However, high-frequency indicators for the October-December quarter signal a gradual recovery, spurred by strong festival-driven activity and improving rural demand, according to the RBI’s recent bulletin.
India’s economic narrative remains robust in the long term. The country registered an impressive 8.2% growth during FY 2023-24, retaining its position as the fastest-growing major economy. This follows growth rates of 7.2% in 2022-23 and 8.7% in 2021-22.
-ANI
