‘Budget will provide economic stability and resilience against current geopolitics’

What was the most striking feature of the Budget and why?

The Budget is poised to provide economic stability and resilience against fast-evolving geopolitical dynamics. With major powers currently involved in bilateral trade deals, there is hope that such stability may give us better bargaining solutions at the tables. Of course, given the interconnectedness of financial systems around the world combined with asymmetric consumption patterns and evolving geopolitics, it remains to be seen if the projected stability could be effectively achieved.




How beneficial will it be for India-EU FTA?

The emphasis on power generation, capacity building prioritizing physical technology for support sectors like semiconductors and electrical, combined with reduction in tariff against the backdrop of the promise for a fiscal discipline, provides a good base to support the India-EU trade deal. Also, some attention has been paid to the regulatory or quality assurance or tariff reforms which will support this move. But urgent attention must be paid to regulate and monitor the composition, structure, relevant business cycles and processes of our industries as compared to that of EU institutions so that we can stay resilient against potential competition and potential deals that EU may negotiate with other countries.

What can NRIs look forward to in the Budget?

Not much has changed for NRIs except a simplified tax regime for partial residency, easing of processes for disposing of properties in India and app-based customs declaration and payment. While this may reduce the burden of some non-performing assets, I cannot see how the Budget does much to change the status-quo. I would suggest with the India-EU trade deal, an in-depth analysis must be carried out on how NRIs based in Europe may play an effective part in this ecosystem.

How will Odisha benefit?

The attention to exploit rare earth deposits from Odisha may help boost our economy a bit. And the turtle trail will attract more wildlife lovers.