Welcome to the EY India Insights podcast. In this episode of our post-Budget 2025 podcast series, we’re joined by Dr. D. K. Srivastava, Chief Policy Advisor at EY India. Together, we’ll explore the key macro-fiscal implications of Budget 2025 and what they mean for the Indian economy.

Here’s what you can look forward to in this episode:

1. Personal tax reforms and economic growth Rationalizing personal tax rates is set to boost disposable incomes, paving the way for greater consumer spending and savings. This change is expected to immediately energize economic activity while creating a foundation for long-term financial stability. With increased consumer participation and investment opportunities, the ripple effects of these reforms are likely to contribute to broader economic growth and resilience.

2. Capital expenditure and sustainable growth Government-led investments in infrastructure and new technologies are key drivers of sustainable growth. These initiatives are designed to enhance production efficiency and address diminishing returns, ensuring lasting economic development. By maintaining focus on capital expenditure, India can sustain its growth momentum and better navigate global uncertainties.

3. India’s GDP growth trajectory India has set an ambitious target of over 7% GDP growth, leveraging global opportunities through a mix of government efforts and private sector collaboration. Achieving this goal will require not just proactive fiscal policies but also a stable global economic environment. Flexibility in policy-making will be crucial to addressing both domestic and international challenges.

4. Balancing fiscal prudence and investments While increasing capital expenditure is essential, it must be done with careful fiscal management. Striking the right balance between investment-driven growth and financial stability is critical to avoiding unsustainable public debt levels. Responsible fiscal governance will help build investor confidence and strengthen the foundation for long-term economic resilience.

Tube in now - https://www.ey.com/en_in/media/podcasts/budget-insights/2025/02/season-2-episode-3-insights-on-macro-fiscal-implications

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