In this edition:

  • Market overview: Indian equity & fixed income market insights from SBIFM’s CIO Team
  • Did you know? The economic case for economic growth
  • Hot topic: Indian Union Budget - fiscal prudence, long-term positive for job creation and micro, small and medium enterprises (MSMEs), short-term negative on tax

The Indian Union Budget is a key event for financial market participants, businesses, and households alike. Presented on July 23rd, this is the first budget during Narendra Modi’s third term as Prime Minister.

There has been intense speculation in the market about the budget’s spending priorities, whether it would prioritise investment-led growth or favour welfare measures to support lower-income groups and boost consumption.

The final Union Budget turned out to be fiscally prudent with efforts to create jobs, strengthen micro, small and medium enterprises (MSMEs), and in turn, boost consumption.

In addition, two significant developments shaped the backdrop: a higher-than-expected central bank dividend and a significant surplus cash balance.

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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 7 August 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 7 August 2024
Doc ID: 3765159