After presenting the Union Budget 2025-26, Finance Minister Nirmala Sitharaman held talks with industry leaders on Monday (17 February) on the budget. There is no need to panic that FIIs sell in global uncertainty.
The Finance Minister said that the government is constantly making efforts for asset building in the country. For the financial year 2025-26, the target has been set to increase the capital expenditure by 10.2% to Rs 16 lakh crore as compared to last year. In this, the government will spend Rs 11.21 lakh crore on its part.
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FII selling in the equity market and increasing the limit of FDI in MSME
Apart from this, the Finance Minister talked about many issues including FII selling in the equity market and increasing the limit of FDI in MSME and insurance sector …
FII selling in equity market: On FII selling in the equity market, the Finance Minister said that there is such an environment in the Indian economy in which good returns are being received from investment. Due to this, there is also a lot of profit booking from the market. He said that FIIs sell in global uncertainty, there is no need to panic about it. In February alone, foreign investors have sold shares worth Rs 29,183.43 crore.
Emphasis on reducing debt-to-GDP ratio: In the coming times, the government is going to focus on reducing the debt-to-GDP (debt on the country according to its GDP) ratio. For this, the first task is to reduce borrowing and follow the fiscal glide path. He said that every possible measure will be taken to reduce the debt, but it will not have any impact on the planned work of the government.
Preparation to increase the limit of FDI in the insurance sector: The government is preparing to increase the limit of Foreign Direct Investment (FDI) in the insurance sector. More players are needed to make the insurance sector more comprehensive. The government is making necessary preparations for this.
Provision of term loan for MSME as well: The Finance Minister said that a term loan will be given to Micro Small and Medium Enterprises i.e. MSME. The working capital assistance they used to get earlier will also continue to be available. However, the announcement of giving term loan to MSME for purchasing plant and machinery was made for the first time in the July budget. This will help the loan needs of small and medium industries by directly involving it.
Revenue loss of ₹ 1 lakh crore due to tax relief: Due to the recent decision of the government on income tax, one crore Indian taxpayers will come out of the category of taxpayers. The decision to give relief in tax will cause a revenue loss of about Rs 1 lakh crore in direct tax and about 2600 crore in indirect tax to the government. The government hopes that due to the reduction in income tax, people will have more money left, which people will put back in the economy in the form of savings or investment.
