Industrial stocks saw a correction after Finance Minister Nirmala Sitharaman announced an 11.11 percent increase in capex allocation for FY20, lower than the expected 15-16 percent. L&T, KEI Industries and KEC International recorded a decline in share prices. The increase is lower than the previous year's 25 percent growth, but industrial stocks have rallied significantly in the past year.

The Ministry of Road Transport and Highways received a 2.8% increase in budget allocation to around Rs 2.78 lakh crore for 2024-25, which will help develop more highways and expressways in the country. However, the target for highway construction has been affected by bad weather and state elections. The ministry is expected to complete the construction of 11,000 km of national highways this year.

The Union government has assumed a nominal GDP growth of 10.5 percent for 2024-25, the interim Budget presented by FM Nirmala Sitharaman on February 1 showed. "Nominal GDP for BE 2024-25 has been projected at Rs 3,27,71,808 crore assuming 10.5 percent growth over the estimated Nominal GDP of Rs 2,96,57,745 crore as per the First Advance Estimates of FY 2023-24," the Budget documents said.

The recent Union Budget 2024 did not bring any major changes for India's banking sector, with no new capitalization plans for state-run banks or privatization announcements. However, schemes were outlined to provide funding for smaller companies and boost innovation. Additionally, long-term interest-free loans will be given to promote tourism and fiscal consolidation is a priority.

Finance Minister Nirmala Sitharaman downplayed the significance of the Interim Budget in December and maintained a similar tone in February. However, her interim budget for 2024-25 stood out for two notable reasons: its focus on capital expenditure and efforts towards decoupling policymaking from annual budget accounting. The budget aims to increase government capital expenditure.

India's Finance Minister did not mention any updates on crypto regulations and taxes in the Interim Budget speech. The government has been working with G20 nations for a common global framework, and has taken measures to address demands from the Indian crypto industry. This includes sending notices to offshore exchanges and delisting them from the App Store.

Finance Minister Nirmala Sitharaman revealed that the PM KISAN Yojana has benefited over 11.8 crore farmers with a financial assistance of Rs 34 lakh crore. This was made possible through direct benefit transfer via Jan Dhan accounts, resulting in savings of Rs 2.7 lakh crore. Under this initiative, farming families receive Rs 6,000 per year in three equal instalments through DBT.

The Interim Budget announced a new rooftop solar scheme for households, aiming to install rooftop solar systems in 1 crore homes and provide savings of up to Rs.18,000 annually. The implementing agency is REC Ltd and the scheme is expected to benefit households by providing free electricity and allowing them to sell surplus energy.

Finance Minister Nirmala Sitharaman announced that by 2030, 100 metric tonnes of coal gasification and liquefaction will be set up. The government has also approved the establishment of a coal-to-SNG project and a coal-to-ammonium nitrate project through joint ventures with Coal India and other companies. This will help reduce import of chemicals and promote aquaculture in the country.

Sitharaman announced in the interim budget speech that the government plans to build 2 crore affordable houses in the next 5 years. They have already achieved a target of 3 crore houses in rural areas and will also help the middle class buy or build their own homes. The government will focus on sustainable development and provide free electricity through rooftop solarisation.

Considering the upcoming elections, the budget had modest expectations for agriculture and rural sectors. The finance minister did not make major reforms but emphasized continued commitment to supporting farmers with hikes in Minimum Support Prices. However, the government may need to revisit the issue of highly subsidized food grains as poverty rates have decreased.

The recent Interim Budget made no changes to the current policy of exempting credit card transactions from TCS (tax collected at source). This means that those with foreign currency expenses can still use their credit cards without worrying about additional taxes, giving credit cards an advantage over other payment modes.

The Union Budget is a comprehensive financial plan for the country's economy. The government has set a fiscal deficit target of 5.1 percent of GDP for 2024-25 and expects a nominal GDP growth rate of 10.5 percent during that time. The disinvestment target for FY25 is Rs 50,000 crore, and the Centre plans to borrow Rs 14.13 lakh crore from the markets in 2024-25.

Finance Minister Nirmala Sitharaman presented the last Budget of the current government before the general elections in May. With no major announcements due to it being a vote on account budget, investors were hoping for measures to boost market confidence. However, there were no changes in taxes and overall, the budget was positive for markets.

Finance Minister acknowledges the distress faced by taxpayers due to unresolved tax disputes and announces waiver of outstanding demands of up to Rs 25,000 for disputes linked to 2009-10 and up to Rs 10,000 for disputes linked to 2010-11 to 2014-15. This move is expected to benefit around 1 crore taxpayers and reduce litigation in direct tax demands since 1962.