News Nook: Feb 3, 2025

Indian Sector Specific News:

A) BFSI:

1) Union Budget 2025: Impact on Financial Inclusion & Insurance Growth

100% FDI in insurance will bring more players, fresh capital, and better products, expanding coverage across India.
Rural financial access will improve with expanded India Post Payment Bank and higher Kisan Credit Card limits, boosting micro and crop insurance.
Source: Economic Times

2) SEBI Proposes ₹5 Lakh UPI Limit for Investments

SEBI plans to raise the daily UPI transaction limit for capital markets from ₹2 lakh to ₹5 lakh, pending further evaluations.
Analysis shows 92.9% of transactions are below ₹1 lakh, making the new limit beneficial for high-value investors.
Source: LiveMint

B) Automobile:

1) Budget 2025-26: Tax Cuts, Lower Duties to Aid Auto Sales

Income tax slab changes may bring over 10 million people into the no-tax zone, boosting demand for small and used cars.
Customs duty on imported motorcycles cut to 40% (≤1600cc) and 30% (>1600cc), benefiting brands like Harley-Davidson and Suzuki Hayabusa.
Source: Business Standard

C) Pharma:

1) Healthcare & Pharma Leaders Praise Union Budget 2025

Industry leaders welcome budget measures, citing benefits for startups, MSMEs, and healthcare infrastructure.
Key highlights include tax cuts, exemption of 36 life-saving cancer drugs from customs duty, and AI-driven healthcare advancements.
Source: Pharmabiz

D) Agriculture:

1) Agriculture Credit Disbursement Reaches ₹19.28 Lakh Crore in FY 2024-25

Government set a ₹27.5 lakh crore target for Ground Level Agriculture Credit (GLC), with ₹4.2 lakh crore for allied activities.
As of December 31, 2024, ₹19.28 lakh crore has been disbursed, achieving 70% of the target.
Source: FNB News

2) Union Budget 2025 Focuses on Agriculture and Allied Sectors

Allocation for agriculture and allied sectors increased by 22% to ₹1.71 trillion.
Key initiatives include the “Prime Minister Dhan-Dhanya Krishi Yojana” for low-productivity districts and a six-year mission for self-sufficiency in pulses.
Increase in Kisan Credit Card loan limit from ₹3 lakh to ₹5 lakh.
Source: Business Standard

E) Energy:

1) Union Budget 2025: Key Allocations for MoPNG and Biofuel Infrastructure

₹19,326 crore allocated to the Ministry of Petroleum and Natural Gas (MoPNG), marking an 11.28% increase.
₹250 crore earmarked for biofuel infrastructure development, including pipeline network for compressed bio-gas (CBG) injection.
Source: ETEnergyWorld

2) India's Power Consumption Growth Subdued at 2.7% in January

Power consumption in January rose by 2.7% to 137.49 billion units due to reduced use of heating appliances amidst warmer temperatures.
Peak power demand increased to 237.30 GW from 222.32 GW in January 2024.
Source: Economic Times

3) Budget 2025: Boost for Private Participation in Nuclear Energy

India's Budget 2025 proposes changes to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to encourage private participation in nuclear energy, with a goal of adding 100GW capacity by 2047.
A ₹20,000 crore fund will support research and development of small modular reactors (SMRs), marking a shift towards nuclear energy as a sustainable base load alternative.
Source: Economic Times

F) IT:

1) Key Budget Proposals for Major Sectors

The budget boosts sectors like technology, auto, energy, healthcare, and manufacturing with new funding and policies to improve infrastructure, innovation, and production.
Key highlights include ₹500 crore for AI, ₹81,174 crore for energy, ₹98,311 crore for healthcare, and more support for EV manufacturing and local industries.
Source: Business Standard

Indian Economy and Government Initiatives:

India's budget prioritizes middle-class tax cuts over crucial economic reforms needed for 8% growth.
Over 90% of taxpayers are expected to shift to the new tax regime with zero tax on income up to ₹12 lakh.
The Budget introduces tax breaks for startups, simplified TDS/TCS rules, and extended time for updating tax returns to ease compliance for businesses.

Indian Stock Market Update:

Sensex fell 700+ points intraday but closed 0.46% lower at 77,186; Nifty ended at 23,361 (-0.52%).
Weak global cues, Trump’s new tariffs, rising dollar (₹1 = 87 per USD), FII outflows (₹2.7 lakh crore since Oct 2024).
Capital Goods (-4.29%), Power, and Energy stocks fell, while Consumer Durables (+0.74%) and IT (+0.68%) gained.

Bonus Briefs:

Gold fell 0.9% to $2,776.05 as the U.S. dollar strengthened after Trump imposed new tariffs on Canada, Mexico, and China.
Asian stock markets slumped as Trump’s tariffs on Canada, Mexico, and China raised fears of a global trade war.
The U.S. dollar hit record highs against the Chinese yuan, Canadian dollar, and Mexican peso.