Ep14 | India Budget 2025 : Economic Impact| Ft. Prof. Radhika Pandey

The Finance Minister of India presented the Union Budget for 2025 on 1 February.

The questions discussed in the podcast:
1. Looking at this year’s budget, do you think it was primarily populist, designed to attract votes, or genuinely aimed at sustainable economic growth? Or do you believe the government has managed to strike a balance between both?

2. “From your perspective, what are the top 2-3 measures in the budget that were truly necessary and impactful? And conversely, which 2-3 measures do you think will have minimal impact or were unnecessary?”

3. “India often resorts to tax cuts to boost consumption instead of focusing on lowering interest rates through the central bank. Why do you think this approach is preferred? Also, do you believe these tax cuts will provide real relief to the middle class, given the ongoing inflationary pressures?”

4. “The government aims to reduce the fiscal deficit to 4.4% in FY26 while maintaining high capital expenditure and projecting strong growth. Given these factors, doesn’t this approach seem slightly contractionary?

5. "Just thinking aloud—rather than providing an income tax cut, wouldn’t it be more effective to reduce GST on certain goods or even eliminate it on essential items? Could this approach have a greater impact on boosting consumption and encouraging private investment?
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6. At a recent conference, former Finance Minister P. Chidambaram stated that even without government intervention, India’s GDP would still grow by around 4-5%. Do you think this is a calculated estimate based on economic fundamentals, or is it an oversimplified claim?