Finance Minister Nirmala Sitharaman pledged to maintain infrastructure spending on roads, bridges and ports to sustain India’s economic momentum while exercising fiscal prudence. Speaking in Mumbai, she emphasized that public investment remains crucial until the private sector expands capacity, stressing responsible spending. Capital expenditure has risen sixfold to ₹12.2 trillion ($129 billion) since 2014‑15, reflecting the Modi government’s infrastructure push.
However, elevated oil prices from Middle‑East tensions threaten public finances, raising import costs and subsidy burdens. The government targets a fiscal deficit of 4.3% of GDP. Sitharaman highlighted strong tax collections, healthy banks and robust activity, urging optimism over cynicism.
She also noted plans to review equity tax policy, amid concerns about a $30 billion outflow of foreign capital this year, which has pressured the rupee and import costs.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing