First Reaction on Union Budget reaction from Mr. Anand Rathi, Founder & Chairman, Anand Rathi Group

“A 33% increase in capital expenditure to 10 lac crore rupees, the highest ever will go a long way in building roads, ports, and airports — crucial for making India a reliable investment destination. Investment of Rs. 2.4 lac crore in Railways is commendable. Boost to capex before the national polls is an indication Modi is focused on realizing his dream of making India a factory for the world.”

“The gross borrowing estimate of 15.43 trillion rupees for next year is lower than the survey estimates of 15.77 trillion rupees. Hopefully, that should cheer the bond markets. Net borrowing at 12.3 trillion rupees, however, is higher than the estimate. Need to see how much of that could be raised via green bonds.

India’s maiden sovereign green bond issuance last month fetched a better-than-expected yield and the next tranche is planned for Feb. 9.

FM has reduced the Fiscal Deficit target to 5.9% for 23/24, which is a welcome move and should help in maintaining the interest rate lower.”