About one and a quarter months is left for the presentation of the general budget. In such a situation, on one hand, the expectations of the common people increase every time from the budget, while on the other hand, the government has to try to reduce the fiscal deficit and increase development. In such This report indicates that the government can strengthen domestic demand by providing targeted fiscal support through the upcoming Union Budget. This will support economic growth and will be in line with the growth-oriented monetary policy of the Reserve Bank of India.

Domestic demand will have to increase

According to global consulting firm EY, possible cuts in income tax and GST rates in the current financial year may put some pressure on government revenues. But an increase in non-tax revenue and a possible reduction in revenue expenditure will make it possible to achieve fiscal deficit and capital expenditure targets.

The report also said that recently announced measures like excise duty on tobacco products and National Security and Public Health Cess have been approved by the Parliament and will be implemented after notification. EY India’s Chief Policy Advisor D.K. Srivastava believes that going forward, India may have to depend more on its strong domestic demand for economic growth and the general budget for the financial year 2026-27 along with the policies of RBI can provide additional stimulus.

Growth rate likely to strengthen

According to the ‘EY Economy Watch’ report, the contribution of net exports to GDP growth may remain negative in the near future due to global headwinds, as seen in recent quarters. However, India’s growth rate may remain strong in the medium term due to a pick-up in domestic private investment and reduction in global supply chain disruptions.

EY estimates that India can maintain an average growth rate of around 6.5 percent, while RBI has estimated the GDP growth rate to be 7.3 percent for the current financial year.

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Union Cabinet Decisions: Under the chairmanship of PM Modi, several important proposals were approved by the Union Cabinet on Wednesday. To speed up the field of agriculture and renewable energy, the cabinet has approved Rs 50 thousand crore. 24 thousand crore rupees will be spent annually on 100 districts selected for this and focus will be done on increasing agricultural productivity. Along with this, an attempt has been made to transform PSU in the energy sector by funding.

What is PM Dhan Dhanya Krishi Krishi Yojana

Actually, the Prime Minister Dhan-Dhanya Krishi Yojana (PMDDKY) has been brought during the Union Budget 2025-26. Its purpose will be integrated under 11 central ministries and focusing on 100 agriculture based districts and developed. This scheme will emphasize on promoting the acceptance of sustainable agricultural practices along with crop diversification.

Union Minister Ashwini Vaishnav said that the selection of these districts has been taken to the areas which do not reach the correct agricultural productivity and loans properly. At least one district has been selected from every state. The Prime Minister will increase storage capacity after harvesting crops, improve irrigation facilities after harvesting and increase agricultural productivity.

20 thousand crores to speed up solar energy

This scheme will be implemented every year with a budget of Rs 24 thousand crore for the next six years. In this, there is an attempt to benefit 1.7 lakh crore farmers through things like crop irrigation, availability of loan, storage infrastructure. Officials say that its purpose is to increase the efficiency and provide the benefits of the schemes till the end at the district level.

An investment of Rs 20,000 crore has been approved by the Union Cabinet to NTPC’s subsidiary NTPC Green Energy Limited, so that green hydrogen, solar energy -based projects can be accelerated. Green energy portfolio is currently operated with a capacity of 6 GE and work is going on to increase its 26GW capacity. But it has been targeted to further 60GW by 2032.

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Indian currency rises: The rupee strengthened in the fourth consecutive trading session amidst the flow of foreign capital in the domestic stock market and the weak trend of American currency. On Thursday, it rose by 10 paise to 85.54 per dollar in early trade. However, foreign currency traders say that local currency was limited due to sluggish perception in the stock market and slight improvement in crude oil prices.

Here, the rupee opened at 85.48 per dollar in the Interbank Forex Exchange Market and fell at 85.54 against the dollar in early trade, showing a 10 paise lead in the last closed price. The rupee closed at 85.64 on Wednesday against the US dollar.

Meanwhile, the dollar index, which showed the US dollar position against six major currencies, rose by 0.14 percent to 99.28. International standard Brent crude rose 0.96 percent to $ 66.48 per barrel.

Rupee getting stronger

The BSE Sensex fell by 333.47 points to 76,710.82 points in the domestic stock market, while the Nifty slipped 127.55 points to 23,309.65 points. According to the stock market data, foreign institutional investors (FIIs) were living on Wednesday and purely bought shares worth Rs 3,936.42 crore.

Earlier, the rupee rose in the third consecutive session in the Interbank Forex Exchange Market and on Wednesday it strengthened 16 paise to close at 85.64 per dollar. The rupee rose on Wednesday amidst the latest investment of foreign institutional investors and the dollar being weak. According to foreign currency traders, the domestic stock market has shown this increase after the US put a 90 -day brake on tariffs. He further said that due to the decrease in crude oil prices in the international market, it has also helped in the strengthening of the rupee.

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