Why PM Modi is trying to calm market after budget
Prime Minister Narendra Modi tried to calm nerves after the stock market tumbled as much as 3% intraday on 1 February (and later closed 2% lower), following Finance Minister Nirmala Sitharaman's new budget.
The main reason? Higher taxes on trading—securities transaction tax on futures jumped to 0.05% (from 0.02%) and on options to 0.15% (from 0.01%).
Modi says focus on long-term growth, not just short-term moves
Modi said the government's plan is all about long-term growth, not just short-term market moves.
He highlighted a big boost in public spending—referring to over 12 trillion rupees in capital expenditure to accelerate infrastructure projects.
There's also a push for tech like AI and blockchain in monitoring progress, plus mentions of tax reforms and steps to deepen and simplify the bond market—all aimed at building a stronger economy over the long term.