The Union Budget 2024-25 on Tuesday was "very progressive" from a long-term point of view, and it kept more money in the hands of the people, according to Keki Mistry, chairperson of HDFC Life Insurance Co.
The stock markets reacted negatively initially because of the increase in the capital gains tax, but it will pull aside, Mistry told NDTV Profit.
He pointed out that the positives of the budget include indications for the growth momentum and the government's focus on employment generation and skilling. "Incentives have been given to sectors that are job machines."
Keki Mistry (Source: Vijay Sartape/NDTV Profit)
For more consumption, manufacturers and service providers will have to increase their capacity, which would result in more jobs, he said. "There's enough for consumption. There's more money kept in the hands of people. Standard deduction, for example, has been increased and various other measures have been announced."
Various positive measures have been taken for the rural economy by promoting agriculture, crop productivity and the manufacturing sector. A lower fiscal deficit target of 4.9% from 5.1% in the interim budget was also very important, according to Mistry.
The HDFC Life chairperson does not see any impact on the housing sector from the removal of indexation. He underscored that a lot had been done for the sector, including 3-crore new houses under the PM Awas Yojana and the Credit-Linked Subsidy Scheme, whose details will soon be in the public domain.
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