Finance Minister Nirmala Sitharaman began her eighth consecutive budget presentation on February 1, 2025, emphasizing the government’s sustained efforts to accelerate growth, secure inclusive development, and boost household sentiment. The budget speech, presented in Parliament at 11 a.m., aims to uplift India’s economic prospects while remaining fiscally disciplined.
This year’s budget comes at a time when India’s economy is projected to grow between 6.3% and 6.8% in 2025-26, according to the Economic Survey for 2024-25. The survey, tabled in Parliament on January 31, reflects optimism regarding India’s post-pandemic recovery but emphasizes the need for sustained reforms to achieve long-term economic stability.
In a significant fiscal update, Sitharaman announced that the fiscal deficit for FY26 is estimated at 4.4%, a reduction from 4.8% for FY25, demonstrating the government’s commitment to fiscal consolidation. The gross market borrowing for FY26 is pegged at ₹14.82 lakh crore, which will help finance government spending while managing the deficit responsibly.
In another major announcement, the finance minister confirmed that the foreign direct investment (FDI) limit in the insurance sector has been raised to 100% from 74%. The move is aimed at attracting foreign capital to enhance competition, improve product offerings, and promote innovation in the insurance sector.
