As anticipation builds for the Union Budget 2025, stock market participants and investors are hopeful for measures that will drive economic recovery and stabilize market sentiment. In an exclusive interview, Narinder Wadhwa, Managing Director and CEO of SKI Capital, shared his insights on the potential impact of Budget 2025, emphasizing the need for pro-growth policies and clarity on long-term taxation.
Wadhwa believes this year’s budget could be a game-changer for India’s economy, with a focus on reviving demand, boosting infrastructure, and supporting private investments. He expects significant allocations to sectors like roads, railways, healthcare, and renewable energy, which are critical for creating jobs and fueling consumption. With the Indian stock market facing heightened volatility, Wadhwa feels that clarity on taxation and strong fiscal policies could restore investor confidence.
The expert highlighted that the government is likely to prioritize infrastructure and rural development. Increased spending on urban projects and renewable energy, including green hydrogen and solar initiatives, is expected to be a cornerstone of the budget. At the same time, reforms to income tax slabs may enhance disposable incomes, boosting consumer demand and overall market sentiment.
Discussing the possibility of an RBI rate cut, Wadhwa pointed out that easing inflation and dovish global trends could prompt the central bank to lower rates in February. Such a move would benefit interest-sensitive sectors like real estate and automobiles while encouraging private capital expenditure. This could also lead to improved corporate earnings, further stabilizing the market.
When asked about the impact of global factors, Wadhwa reflected on the mixed consequences of US President Donald Trump’s tariff policies. While aggressive tariffs may disrupt supply chains in industries like textiles and electronics, Indian manufacturers could gain from companies seeking alternatives to Chinese suppliers. Financial markets, he noted, might experience short-term volatility, but a stable US economy could indirectly support global markets, including India.
Looking ahead, Wadhwa expressed optimism about India’s macroeconomic trajectory in 2025. Government-led initiatives, coupled with a recovery in private investments, are expected to spur GDP growth. While inflation risks remain, especially from global energy prices, the RBI is likely to keep inflation within its target range, ensuring a balance between growth and price stability.
In a message to investors, Wadhwa recommended focusing on fundamentals and adopting a disciplined, long-term approach to navigating market volatility. He identified infrastructure and capital goods as strong investment opportunities, given their alignment with government priorities. As the countdown to February 1 begins, hopes are high that Budget 2025 will deliver the right mix of reforms and investments to propel India’s economy forward.
