The government will continue to focus on capex for infrastructure expansion in areas like railways, while personal tax norms may see some tweaks, according to experts.
"Investment in defence and railway modernisation and indigenisation will continue. More acquisitions from domestic companies will be in focus," Deepak Shenoy, founder and CEO of Capitalmind Financial Services Pvt., told NDTV Profit.
"I expect increased outlays on defence to continue with the modernisation goals," market expert Ajay Bagga said, concurring with Shenoy. "Roads and railways capex growth will go up," he said.
Shenoy said tax-related changes, if any, will be announced in the interim budget since introducing those in the July budget will create implementation issues. He expects the exemption-free personal tax regime to be tweaked.
"I expect tax slabs to change to a higher degree for those who don't take exemptions," he said, stressing the need for India's taxation policy to be more progressive.
According to Bagga, the Modi government, confident of a return after elections, will continue on the path of a vision-led model with longer-term goals in mind.
Equity markets have been upbeat on railway, infrastructure and defence stocks in anticipation of continued growth momentum, he said.
"There could be a selloff if allocations are lower (than expected) in railways and defence. The capex will be watched. I expect capex growth in single digits," he said.
Watch the full conversation here:
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