Who Gains, Who Loses as India Doles Out $12 Billion in Tax Sops

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(Bloomberg)-India has reduced the country’s middle class taxes, with about $ 12 billion in its pockets, as Narindra’s government aims to enhance spending on consumption.

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Finance Minister Nermalla Sitaramann said on Saturday in her budget letter, as she raised the maximum of 700,000 rupees, that the annual Indians of 1.2 million rupees ($ 13,854) will actually be exempted from paying the income tax.

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Setharmann said the tax changes will lead to the federal government, 1 trillion rupee ($ 11.6 billion) in tax revenues, as well, highlighting the amount of additional income that will be left in the hands of Indian families.

The minister also fought the budget deficit for the coming fiscal year until March 31, 2026 to 4.4 % of GDP. The NSE NIFTY 50 index decreased more than 300 points from the highest level in the day 23632.45 while the budget speech was operated, before trim the losses.

Stetharman said at the beginning of the speech that the budget aims to raise the level of household feelings, enhance the increasing middle -class spending power in India and enhance private investment “to cancel larger prosperity.”

The Indians have been severely exposed through a double noise of low wages and high prices, as the economy is scheduled to record its weakest growth from the epidemic in the year until March.

Ads show the revised priority of the government, as the allocation of spending on infrastructure was almost flat at 11.21 billion rupees on estimates in the full budget last year.

Below are the main winners and losers of the budget 2025:

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Winners

consumption

The tax operations, which are saved by Sitharaman as the last thing in the budget speech, aims to address the necessity of consumption in the world of the world most worrying and chanting shares of companies facing the consumer in India.

The rapid consumer commodity index consisting of 77 members has increased, which includes hotels and cookies to school supply makers since June.

Before the budget, Tata Motors sought to Hindustan Unilever to measures to enhance consumer spending.

Insurance sector

The government raised the foreign direct investment limit to 100 % in the sector from 74 % at the present time.

“This is expected to bring more players and more capital from the current players,” said Balmurojan Chansmagham, the chief investment official in Aviva India after the budget.

agriculture

The government will facilitate credit for 17 million farmers, and also announced a six -year task for self -reliance in legumes. Kaveri Seeds Co. , Godrej Agrove is among the shares that have risen after the advertisement.

The Minister of Finance also announced the establishment of a fox nuts council-considered a superior diet-in Bihar as well as the establishment of a fertilizer factory in the province of Asam, a northeast state ruled by the Moody party.

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manufacturing

The budget aims to make the country a global manufacturing center for games, and declared measures focusing on small and medium -sized companies, describing them as a second growth engine in the country. Shoe makers, including Relainso Rose after the government announced a policy to enhance production in this sector.

Emerging companies

The country has planned 100 billion rupees for startups to enhance entrepreneurship in the country, which already has the third largest environmental system in the world for new companies.

Nuclear energy

Finance Minister Setharmann said that India will amend the Atomic Energy Law, and to tighten the method of private investment in nuclear energy projects, as well as amending civil responsibility for the nuclear damage law that left investments in the sector.

It has also set plans to increase nuclear energy by more than 12 times to 100 GB by 2047, which will help nuclear equipment makers such as BHEL and WalchandNagar Industries.

Losers

Infrastructure

It was the largest construction company in India Larsen and Topro, and others, including Siemens, Al -Hindi Financial Railways Company among the largest founders in the NIFTY 100 index, where the government’s allocation of capital spending increased by less than 1 % than last year. The government also reduced the planned capital for the current fiscal year ending March 31, 2025.

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Cement makers such as Ultlatech, Ambuja and ACC were among the companies that are trading because their wealth is closely related to infrastructure projects.

Refineries

The shares of Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petrolue Corp decreased after the budget had no ruling to compensate for state -owned retail dealers to sell cooking gas, something that the Ministry of Oil seeks.

Also, the total support for the oil sector has been reduced to 121 billion rupees for the year ending March 31, 2026 compared to 147 billion rupees in the revised estimates for the current fiscal year.

It was the largest company: Rillance Industries Ltd. , That earns a lot of revenues from its oil business, trading less.

Fertilizer companies

The government will reduce fertilizer support to 1.68 trillion rupee next year in an attempt to narrow the budget deficit. Indian nutrient producers such as National Fertilizers Ltd. , Rashtriya Chemicals & Fertilizers Ltd.

health care

The lack of measures to enhance health care spending by the government in India has sent the shares of drug makers to a decrease. The country is among the lowest spending on health care in the world at about 3.3 % of GDP. This is about 5.4 % in China and about 16 % in the United States, according to the latest data from the World Bank.

– With the help of Mihir Mishra, Ashutosh Joshi and PR Sanjai.

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