Budget 2024: Expect muted infra allocation, focus on defence, EV, says Pramod Amthe of InCred Capital

livemint.com:

Pramod Amthe, Head Of Institutional Equity Research at InCred Capital believes there could be a muted allocation for the infra sector in the Budget, but there could be announcements for the next five years which can provide the roadmap for the sector. He expects the government to focus on defence, new energy incentives and EVs (electric vehicles). In an interview with Mint, Amthe also shared his views on markets and his expectations from the Q3 earnings of Nifty companies.

Edited excerpts: The Budget presented for FY25F will be interim and hence big expectations may be difficult. Fiscal deficit consolidation by 50bp year-on-year (YoY) will be keenly watched out. It should avoid the temptation for big populist schemes, ahead of the election period.

Also Read: Budget 2024: Any major sops unlikely, expect relief measures for rural sector, says Madhavi Arora of Emkay Global We expect a muted allocation for the infra sector in FY25F on a larger base of FY24, but there could be announcements for the next five years which can provide the roadmap for the sector. Also Read: Interim Budget 2024: 5 key things to watch out for In defence, we expect spending to touch nearly 2 per cent of FY25F GDP, representing nearly 13 per cent of total government expenditure. New energy incentives and EV subsidy scheme outlay for the next three years will be looked forward to.

Read all Budget-related coverage here Budget 2024 is likely to provide a significant boost to the new energy, EV sector and the defence industry. These sectors are expected to receive increased funding and support, reflecting the government's emphasis on sustainable technologies and national security. Also Read: Budget 2024 expectations: EV industry pins hopes on subsidy