'Putting nation above politics': Investor hails PM Modi, FM Sitharaman for fiscal honesty

Investor and author Harsh Madhusudan Gupta on Saturday shared an optimistic take on Finance Minister Nirmala Sitharaman’s Union Budget 2025-26, praising the government’s focus on reforms, fiscal discipline, and long-term growth. “India is rising fast, and with the power of compounding, gradually one day starts looking like suddenly,” Madhusudan said in a post on X.

He acknowledged the government’s decisive steps in reducing taxes, both direct and indirect. “PM Modi and FM Sitharaman have cut corporate taxes, income taxes, indirect taxes. Only the very top is paying more income taxes,” he noted, highlighting how fiscal consolidation has been balanced with growth-oriented reforms. Madhusudan credited Digital Public Infrastructure (DPI) for enhancing the efficiency of welfare spending, a move that aligns with the government’s broader vision of inclusive development.

On fiscal prudence, he commended the government’s honest approach, stating, “They have been honest with respect to fiscal consolidation, and along with the RBI on inflation targeting. One can argue a bit too inflexibly by the book, but nonetheless putting nation above politics.” This, he suggested, reflects a commitment to long-term stability over short-term populism.

The Centre has lowered its fiscal deficit target to 4.8% of GDP for the current financial year, down from the earlier estimate of 4.9%. For the next financial year, the fiscal deficit has been pegged at 4.4% of GDP, signaling a continued commitment to fiscal consolidation.

Madhusudan lauded the government’s reform agenda, citing landmark initiatives like GST, the Insolvency and Bankruptcy Code (IBC), and gradual progress on labour laws, with sincere attempts at addressing land and agricultural reforms. While acknowledging areas where more could have been done, such as privatisation and disinvestment, he remarked, “It is what it is,” indicating that reforms are often a work in progress.

With a strong focus on infrastructure and a growing emphasis on manufacturing, including defense indigenization, Madhusudan believes India is poised for a new growth phase. “India is ready. We have to think of industrial policy when it comes to software, but that is not urgent even as it is important,” he said.

Addressing recent economic pessimism, he dismissed concerns rooted in coalition politics, stock market corrections, or even global factors like the strong USD and Chinese innovations. “But some things just take time. Warren Buffett said you can’t get a child in one month by getting nine women pregnant,” Madhusudan quipped, emphasizing the importance of patience in economic development.

He concluded with a nod to the late investor Rakesh Jhunjhunwala, saying, “If the India story is a Mumbai to Delhi train, we have not even stepped out of Mumbai yet.”