According to reports from Zee Business, HDFC Bank Independent Director Keki Mistry highlighted that this year's budget is likely to focus on boosting domestic economic growth, creating jobs, supporting the manufacturing sector, and encouraging investments in key sectors. Mistry emphasized that the current global economic scenario, including high tariffs and uncertainties, requires the government to pay greater attention to the domestic economy. He noted that the budget will be growth-oriented and critical for creating jobs, with manufacturing sector benefits and consumption encouragement. The budget comes as India's real GDP growth for 2026-27 is projected in the range of 6.8-7.2 per cent, reflecting sustained medium-term growth capacity amid a challenging global environment.
As reported by Zee Business, Mistry noted that export-related sectors such as textiles and jewellery have been largely affected by global challenges. He suggested providing some additional incentives to support these sectors. For manufacturing growth, he recommended encouraging changes in the Production-Linked Incentive (PLI) schemes or through investment allowances. Mistry explained that measures like accelerated depreciation or other incentives can encourage more manufacturing, which will in turn create jobs. The government has already approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet' with a financial outlay of ₹7,280 crore to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in India.
According to the discussion with Zee Business, Mistry emphasized the role of technology in shaping the future job market. He stated that artificial intelligence will come in a big way and could create pressure on jobs. Mistry stressed that it is very critical to create jobs now to ensure the country can navigate the introduction of artificial intelligence in a big way. This focus on job creation aligns with the broader goal of balancing growth and investment while addressing global challenges. The government has also proposed to spend ₹40,000 crore for electronics components manufacturing and launch Semiconductor Mission 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains.
As reported by Zee Business, Mistry noted that significant progress has been made on reforms and ease of doing business, but there is scope for further simplification. He highlighted that several initiatives on ease of doing business have been taken by various regulators, including RBI, SEBI, and IRDA. Mistry suggested that simplifying processes related to starting new plants, buying machinery, or acquiring land would be very helpful for businesses. The government has also proposed to establish high-tech tool rooms by central public sector enterprises at two locations as digitally enabled automation service bureaus that locally design, test and manufacture high precision components at scale and at lower cost.
According to the discussion with Zee Business, Mistry emphasized that stability in tax policies is crucial to encourage long-term investment. He explained that taxation reforms have been implemented over the past few years, but for capital markets, it is important to have long-term stability. Mistry suggested a system where capital gains are taxed at a lower rate in the first year, slightly higher in the next two or three years, and progressively thereafter will encourage long-term equity investment. The government has also announced STT hike for F&O trades in the latest budget, which will impact traders' costs.