FM Sitharaman: Fiscal, Monetary Steps to Boost Consumption, Investment:

New Delhi: Finance Minister Nirmala Sitharaman on Saturday expressed confidence that the recent fiscal and monetary measures announced by the government and the Reserve Bank of India (RBI) will help boost consumption and encourage private investment.

Addressing the media after her post-budget meeting with the RBI Board, Sitharaman highlighted that the Union Budget 2025, presented on February 1, introduced key measures, including significant income tax cuts for the middle class. Under the new tax regime, individuals earning up to ₹12.75 lakh per year will not have to pay any taxes, benefiting nearly 1 crore taxpayers.

RBI Cuts Interest Rate to Support Growth

On the monetary policy front, the RBI reduced the repo rate by 25 basis points on Friday, marking the first rate cut in five years. This move aims to spur economic growth by making borrowing cheaper for businesses and individuals.

Sitharaman shared insights from business leaders, noting that fast-moving consumer goods (FMCG) orders for April-June are already being booked, signaling an early recovery in consumption.

Investment Sentiment Improving

She further stated that businesses are now considering revising their capacity utilization, reflecting confidence in a consumption-driven economic cycle. "This is a positive indicator for economic growth. With the RBI’s rate cut decision, we can expect further momentum in investment and spending," she added.

Government-RBI Coordination to Sustain Growth and Control Inflation

The Finance Minister reaffirmed that the government and the RBI will continue working in coordination to support economic growth and manage inflation. She emphasized that both fiscal and monetary policies are aligned, ensuring a balanced approach to economic stability.

With these measures in place, Sitharaman remains optimistic about India’s economic outlook, expecting increased investment, stronger consumption, and overall economic expansion in the coming months.