Finance Secretary Tuhin Kant Pandey on Monday asked the Indian industry to awaken the animal spirit and invest in the economy. Famous British economist John Meenard Keins coined the word animal spirit. In the time of economic stress or uncertainty, if investors and consumers are ready to take risks and spend more, then it is said that the animal spirit is increased. Investors and consumers become more cautious and conservative when the animal spirit is low.
He said that both the government and the private sector need to work as a team to become a developed country.
After the budget, Pandey said in the CII industry dialogue that the government has prepared the basis for continuous economic growth and the industry will have to work together.
He said, now you have to awaken the animal spirit and invest. Some people in you are waiting to invest. I believe that its time has come. He said, instead of thinking about what will happen or what will happen or what will not happen, the industry should now take risks and invest. Earlier, Pandey said in the dialogue session of Udyog Mandal FICCI, "The general budget of FY 2025-26 has given adequate non-curiosity incentives to the economy, which will lead to continuous strength to growth. He said that a balance has been created between increase in budget and inflation. This was done keeping in mind the exchange rates, comprehensive economic stability and controlling fiscal consolidation.
He said, we also have enough encouragement in the economy. This is an incentive given without increasing inflation, which will promote savings, investment and growth. This will promote frequent growth. Also, the demand will work on the side and supply side. Union Finance Minister Nirmala Sitharaman has increased the income tax exemption limit to Rs 12 lakh in the budget of FY 2025-26. The purpose of this step was to pay more funds in the hands of taxpayers for savings, investment or consumption.
In the budget, the fiscal deficit target for FY 2025-26 is kept at 4.4 percent of the GDP (GDP) and it is estimated to be 4.8 percent in FY 2024-25. Pandey said, in the budget we have to consolidate fiscal, because we do not want to become inflation. If we try to encourage the economy at such a time, when we should not do so, it can increase inflation. He said that this budget balances all these imperatives.
