www.reuters.com Open in urlscan Pro
2600:9000:235a:8c00:15:5a3e:9d40:93a1  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to main content

Exclusive news, data and analytics for financial market professionalsLearn more
aboutRefinitiv

Reuters home
 * World
   Browse World
    * Africa
    * Americas
    * Asia Pacific
    * China
    * Europe
    * India
    * Israel and Hamas at War
   
    * Japan
    * Middle East
    * Ukraine and Russia at War
    * United Kingdom
    * United States
    * US Election
    * Reuters Next
   
   Latest in World
    * Blast at Russian oil and gas field kills one, RIA says
      12 min ago
      
    * Thai opposition leader hopeful in Move Forward's battle for survival
      15 min ago
      article with gallery
    * Hungary flags 2025 pre-election stimulus as economic recovery falters
      28 min ago
      
    * US arrests Mexican drug lord 'El Mayo' and El Chapo's son in Texas
      an hour ago
      article with gallery

 * Business
   Browse Business
    * Aerospace & Defense
    * Autos & Transportation
    * Davos
    * Energy
    * Environment
    * Finance
    * Healthcare & Pharmaceuticals
   
    * Media & Telecom
    * Retail & Consumer
    * Future of Health
    * Future of Money
    * Take Five
    * World at Work
   
   Latest in Business
    * JPMorgan launches in-house chatbot as AI-based research analyst, FT
      reports
      7 min ago
      
    * Oil prices set for third straight week of decline
      7 min ago
      article with gallery
    * Morning Bid: Stocks on firmer footing after wild week
      30 min ago
      
    * Japan June industrial output seen down on auto production suspention:
      Reuters poll
      32 min ago
      

 * Markets
   Browse Markets
    * Asian Markets
    * Carbon Markets
    * Commodities
    * Currencies
    * Deals
    * Emerging Markets
    * ETFs
    * European Markets
   
    * Funds
    * Global Market Data
    * Rates & Bonds
    * Stocks
    * U.S. Markets
    * Wealth
    * Macro Matters
   
   Latest in Markets
    * Yen steady, Asian stocks weak as wild week winds down
      4:44 AM GMT+2
      
    * Stocks add to recent losses; yen flat after 2 1/2-mo high vs dollar
      July 25, 2024
      article with video
    * Investors recoil as this year's 'everything rally' screeches to a halt
      July 25, 2024
      
    * TSX hits 2-week low as industrials, gold mining shares fall
      July 25, 2024
      

 * Sustainability
   Browse Sustainability
    * Boards, Policy & Regulation
    * Climate & Energy
    * Land Use & Biodiversity
    * Society & Equity
    * Sustainable Finance & Reporting
    * The Switch
    * Reuters Impact
   
   Latest in Sustainability
    * India cenbank's proposed liquidity norms to raise demand for bonds
      16 min ago
      
    * Climate change causing more change in rainfall, fiercer typhoons,
      scientists say
      4:58 AM GMT+2
      
    * Man started California wildfire by pushing burning car into gully,
      prosecutor says
      4:11 AM GMT+2
      article with gallery
    * CrowdStrike says over 97% of Windows sensors back online
      3:15 AM GMT+2
      

 * Legal
   Browse Legal
    * Government
    * Legal Industry
    * Litigation
    * Transactional
    * US Supreme Court
   
   Latest in Legal
    * Harris pushes Netanyahu to ease suffering in Gaza: 'I will not be silent'
      3:27 AM GMT+2
      article with video
    * Harris condemns flag burning, protesters call it distraction from Gaza
      crisis
      3:16 AM GMT+2
      article with gallery
    * Hollywood's videogame performers to strike over AI, pay concerns
      2:15 AM GMT+2
      
    * US Supreme Court's Kagan backs ethics enforcement mechanism, media report
      1:08 AM GMT+2
      

 * Breakingviews
   Browse Breakingviews
    * Breakingviews Predictions
   
   Latest in Breakingviews
    * India wants to be China's gateway to the West
      4:33 AM GMT+2
      
    * Murdoch media galaxy would be better with one sun
      July 25, 2024
      
    * UMG pays steep price for platform addiction
      July 25, 2024
      
    * CrowdStrike in cursed grip of corporate klutz club
      July 25, 2024
      

 * Technology
   Browse Technology
    * Artificial Intelligence
    * Cybersecurity
    * Space
    * Disrupted
   
   Latest in Technology
    * JPMorgan launches in-house chatbot as AI-based research analyst, FT
      reports
      7 min ago
      
    * SpaceX's Falcon 9 cleared to return to space, FAA says
      5:52 AM GMT+2
      
    * CrowdStrike says over 97% of Windows sensors back online
      3:15 AM GMT+2
      
    * OpenAI enters Google-dominated search market with SearchGPT
      2:13 AM GMT+2
      

 * Investigations
 * More
   Sports
    * Olympics
    * Athletics
    * Baseball
    * Basketball
    * Cricket
    * Cycling
    * Formula 1
    * Golf
    * NFL
    * NHL
    * Soccer
    * Tennis
   
   Science
   Lifestyle
   Graphics
   Pictures
   Podcasts
   Fact Check
   Video
   Sponsored Content
    * Reuters Plus
   
   Trending Stories
    * Worldcategory
      US arrests Mexican drug lord 'El Mayo' and El Chapo's son in Texas
      article with gallery
    * Worldcategory
      Harris gains ground in polls as Trump tries to brand her a Marxist
      article with video
    * Worldcategory
      Exclusive: Harris leads Trump 44% to 42% in US presidential race,
      Reuters/Ipsos poll finds
      article with gallery

My News

Sign InRegister

 * India


INDIA'S MODI SETS ASIDE BILLIONS FOR JOBS, ALLIES IN POST-ELECTION BUDGET

By Sarita Chaganti Singh , Nikunj Ohri and Shivangi Acharya
July 23, 20243:46 PM GMT+2Updated 3 days ago
Text
 * Small Text
 * Medium Text
 * Large Text

Share
 * X
 * Facebook
 * Linkedin
 * Email
 * Link

Item 1 of 5 India's Finance Minister Nirmala Sitharaman holds up a folder with
the Government of India's logo as she leaves her office to present the union
budget in the parliament in New Delhi, India, July 23, 2024. REUTERS/Altaf
Hussain
[1/5]India's Finance Minister Nirmala Sitharaman holds up a folder with the
Government of India's logo as she leaves her office to present the union budget
in the parliament in New Delhi, India, July 23, 2024. REUTERS/Altaf Hussain
Purchase Licensing Rights, opens new tab

 * Summary

 * Earmarks $56 bln for job creation, rural economy over years
 * Fiscal deficit target for 2024-25 at 4.9% of GDP vs Feb's 5.1%
 * Higher tax on equities, equity derivatives
 * Lower tax on foreign companies to attract investment

NEW DELHI, July 23 (Reuters) - India's government assigned billions of dollars
for job creation and regions run by key coalition partners in a budget aimed at
cementing the coalition and winning back voters after Prime Minister Narendra
Modi's election setback.
Tax changes unveiled in the budget included a higher levy on equity investments
to allay concerns the market might be overheating and lower taxes for foreign
companies to attract more investment.
Advertisement · Scroll to continue

The $576 billion in total outlays included $32 billion for rural programmes, $24
billion to be spent over five years to create jobs, and more than $5 billion for
two states ruled by coalition partners.
"In this budget, we particularly focus on employment, skilling, small
businesses, and the middle class," Finance Minister Nirmala Sitharaman said on
Tuesday.
The government will also implement reforms across factors of production,
including land and labour, she said.
Advertisement · Scroll to continue

Subsequent budgets would continue to focus on those areas, Sitharaman said while
presenting her seventh annual budget.
Despite the new spending, India cut its fiscal deficit target to 4.9% of gross
domestic product in fiscal year ending on March 31, 2025, from 5.1% in
February's interim budget, helped by a large surplus of $25 billion from the
central bank.
The government also marginally reduced gross market borrowing to 14.01 trillion
rupees.


A look at some of the key figures from India budget 2024-25.
Economist had blamed the distress in rural areas and a weak job market for a
poor poll showing that cost Modi's Bharatiya Janata Party (BJP) its absolute
majority. They say land and labour reforms are essential for India to sustain
strong economic growth.
Asia's third-largest economy grew 8.2% in the past fiscal year and the
government sees growth of 6.5% to 7% this fiscal year, a report showed on
Monday.

Sakshi Gupta, principal economist at HDFC Bank, said the budget managed to
strike a balance between policies supporting growth and maintaining fiscal
discpline. However, implementing more ambitious reforms, will be "challenging"
for the coalition, Gene Fang, associate managing director for sovereign risk at
Moody's Ratings, told Reuters.
Previous attempts to make it easier for companies to acquire land and lay off
staff have repeatedly faced pushback from states concerned about protests such
measures might provoke.

Among measures aimed at boosting employment, the budget included incentives for
companies to train staff as well as and cheaper loans for higher education,
Sitharaman said.
India's reported urban unemployment rate is 6.7%, but private agency the Centre
For Monitoring Indian Economy pegs it higher, at 8.4%.
The budget also maintains spending on long-term infrastructure projects at 11.11
trillion rupees, with states assigned 1.5 trillion rupees in long-term loans to
fund such expenditure. Some will be linked to reform milestones in areas such as
land and labour, which Sitharaman said the government intended to push in its
third term.
In a concession to the government's allies, Sitharaman said it would hasten
loans from multilateral agencies for the eastern state of Bihar and the southern
state of Andhra Pradesh.

expenditure on major schemes


TAX CHANGES

India raised to 20% from 15% its tax rate for equity investments held for less
than a year, while the rate for those held longer than 12 months rose to 12.5%
from 10%. The taxes will be applicable from Wednesday.
The government also increased the tax on equity derivative transactions that
have drawn retail investors, which will be implemented from Oct. 1.
Shares and the rupee declined after the budget announcement but recovered most
of the losses with main stock indexes (.NSEI), opens new tab, (.BSESN), opens
new tab ending the day down about 0.13%.
The tax changes were a short-term negative for the market, but could pay off in
the longer term, said Vineet Arora, investment manager at Singapore-based NAV
Capital Emerging Star Fund.
"It is expected to help in stabilizing the market and attracting investors with
a long-term perspective on the Indian economy," Arora said.

Reuters Graphics Reuters Graphics
Corporate tax for foreign companies was cut to 35% from 40%, with the aim of
encouraging more investment, while a lower tax burden for lower income
consumers, expected to encourage spending, helped drive consumer stocks to
record highs.
($1=83.6410 rupees)

Get the latest news and expert analysis about the state of the global economy
with Reuters Econ World. Sign up here.

Additional reporting by Aftab Ahmed; Writing by Ira Dugal; Editing by Clarence
Fernandez and Tomasz Janowski

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Share
 * X
 * Facebook
 * Linkedin
 * Email
 * Link

Purchase Licensing Rights
Nikunj Ohri

Thomson Reuters

Nikunj Ohri reports on the India's economic policies with a focus on government
finances. He has extensively reported on India's privatisation policy, public
listing of the country's largest insurer, and its erratic stance on
cryptocurrency regulations. Nikunj has previously worked with publications such
as Business Standard.

 * Email
 * X
 * Instagram
 * Linkedin


READ NEXT

 * IndiacategoryIndian shares rise after a five-session drop, IT leads
 * Regulatory OversightcategoryIndia cenbank's proposed liquidity norms to raise
   demand for bonds
 * ChinacategoryChina, India should work in same direction, relations have an
   important impact, says Wang
 * Australia's Mayne Pharma sues Indian drugmaker Sun Pharma over patent
   infringement
 * article with gallery
   IndiacategoryIndia and China agree to approach border issues with urgency
 * IndiacategoryForeigners sell nearly $1 bln in Indian equities in two days
   since budget




WORLD


 * BLAST AT RUSSIAN OIL AND GAS FIELD KILLS ONE, RIA SAYS
   
   Europecategory · July 26, 2024 · 6:52 AM GMT+2 · 12 min ago
   
   A blast at the East Urengoy oil and gas condensate field in the Yamal-Nenets
   region of Russia's Arctic killed one worker and injured seven on Friday, the
   RIA news agency said, citing field operator Rosneft .

 * article with gallery
   Asia PacificcategoryThai opposition leader hopeful in Move Forward's battle
   for survival6:48 AM GMT+2 · Updated 15 min ago
 * Macro MatterscategoryHungary flags 2025 pre-election stimulus as economic
   recovery falters6:35 AM GMT+2 · Updated 28 min ago
 * article with gallery
   AmericascategoryUS arrests Mexican drug lord 'El Mayo' and El Chapo's son in
   Texas6:19 AM GMT+2 · Updated an hour ago
 * TechnologycategorySpaceX's Falcon 9 cleared to return to space, FAA says5:52
   AM GMT+2




SITE INDEX


LATEST

 * Home
 * Authors
 * Topic sitemap


BROWSE

 * World
 * Business
 * Markets
 * Sustainability
 * Legal
 * Breakingviews
 * Technology
 * Investigations
 * Sports
 * Science
 * Lifestyle


MEDIA

 * 
   Videos
 * 
   Pictures
 * 
   Graphics


ABOUT REUTERS

 * About Reuters, opens new tab
 * Careers, opens new tab
 * Reuters News Agency, opens new tab
 * Brand Attribution Guidelines, opens new tab
 * Reuters Leadership, opens new tab
 * Reuters Fact Check
 * Reuters Diversity Report, opens new tab


STAY INFORMED

 * Download the App (iOS), opens new tab
 * Download the App (Android), opens new tab
 * Newsletters


INFORMATION YOU CAN TRUST

Reuters, the news and media division of Thomson Reuters, is the world’s largest
multimedia news provider, reaching billions of people worldwide every day.
Reuters provides business, financial, national and international news to
professionals via desktop terminals, the world's media organizations, industry
events and directly to consumers.


FOLLOW US

 * X
 * Facebook
 * Instagram
 * Youtube
 * Linkedin


THOMSON REUTERS PRODUCTS

 * WESTLAW, OPENS NEW TAB
   
   BUILD THE STRONGEST ARGUMENT RELYING ON AUTHORITATIVE CONTENT,
   ATTORNEY-EDITOR EXPERTISE, AND INDUSTRY DEFINING TECHNOLOGY.

 * ONESOURCE, OPENS NEW TAB
   
   THE MOST COMPREHENSIVE SOLUTION TO MANAGE ALL YOUR COMPLEX AND EVER-EXPANDING
   TAX AND COMPLIANCE NEEDS.

 * CHECKPOINT, OPENS NEW TAB
   
   THE INDUSTRY LEADER FOR ONLINE INFORMATION FOR TAX, ACCOUNTING AND FINANCE
   PROFESSIONALS.


LSEG PRODUCTS

 * WORKSPACE, OPENS NEW TAB
   
   ACCESS UNMATCHED FINANCIAL DATA, NEWS AND CONTENT IN A HIGHLY-CUSTOMISED
   WORKFLOW EXPERIENCE ON DESKTOP, WEB AND MOBILE.

 * DATA CATALOGUE, OPENS NEW TAB
   
   BROWSE AN UNRIVALLED PORTFOLIO OF REAL-TIME AND HISTORICAL MARKET DATA AND
   INSIGHTS FROM WORLDWIDE SOURCES AND EXPERTS.

 * WORLD-CHECK, OPENS NEW TAB
   
   SCREEN FOR HEIGHTENED RISK INDIVIDUAL AND ENTITIES GLOBALLY TO HELP UNCOVER
   HIDDEN RISKS IN BUSINESS RELATIONSHIPS AND HUMAN NETWORKS.

 * Advertise With Us, opens new tab
 * Advertising Guidelines
 * Purchase Licensing Rights, opens new tab

 * Cookies, opens new tab
 * Terms of Use
 * Privacy, opens new tab
 * Digital Accessibility, opens new tab
 * Corrections
 * Site Feedback, opens new tab

All quotes delayed a minimum of 15 minutes. See here for a complete list of
exchanges and delays.

© 2024 Reuters. All rights reserved






RIGHT TO WITHDRAW CONSENT UNDER GDPR

We and our 152 partners store and/or access information on a device, such as
unique IDs in cookies to process personal data. You may accept or manage your
choices by clicking below, including your right to object where legitimate
interest is used, or at any time in the privacy policy page. These choices will
be signaled to our partners and will not affect browsing data.Cookie
PolicyPrivacy Statement


WE AND OUR PARTNERS PROCESS DATA TO PROVIDE:

Use precise geolocation data. Actively scan device characteristics for
identification. Store and/or access information on a device. Personalised
advertising and content, advertising and content measurement, audience research
and services development. List of Partners (vendors)

Allow All Reject All Show Purposes


Feedback