HT Bureau
GUWAHATI, Feb 2: Sakshi Gupta, Principal Economist at HDFC Bank, said the Union Budget for FY27, presented amid rising global uncertainties, has focused on laying down a medium-term roadmap to boost domestic growth and productivity, while maintaining a prudent fiscal stance.
She noted that unlike the previous budget, which prioritised consumption through income tax rationalisation, the latest budget has shifted its emphasis towards promoting manufacturing and the services sector.
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According to her, the proposed setting up of a standing committee for the banking system to achieve the Viksit Bharat goal, along with a renewed focus on tourism, health, education and skilling, underlines the government’s intent to raise India’s share in global services exports to 10 per cent.
On domestic production, Gupta said infrastructure development, along with targeted support for electronics, semiconductors, rare earth magnets and chemicals, featured prominently in the Finance Minister’s Viksit Bharat plan.
She added that labour-intensive and tariff-hit sectors such as textiles and MSMEs have also been provided enhanced policy support.
Commenting on the fiscal framework, Gupta observed that the budget remains conservative, assuming a nominal GDP growth of 10 per cent for FY27, which is lower than HDFC Bank’s estimate of 10.5 per cent.
She said the government has, as expected, targeted moderate capital expenditure growth of 11.5 per cent in FY27, while increasingly relying on private sector investment to drive expansion.
“The fiscal math broadly appears credible and prudent, with an emphasis on gentle fiscal consolidation in FY27,” she said.
However, Gupta cautioned that the higher-than-expected gross borrowing figure of ₹17.2 lakh crore could weigh on market sentiment, especially at a time when demand-supply imbalances are already exerting pressure on bond yields.
She said this could result in the 10-year government bond yield opening higher in the near term
