What has been hailed as the most pro-growth budget by the government was also received positively by traders on Dalal Street as the equity market traded higher for two consecutive days, Tuesday and Wednesday. The positive response from the market signifies the government’s focus on infrastructure development, easing of the regulatory framework, private investment promotion, and the continuity in taxation. The focus on holistic development—sustainable, inclusive—gives a push to all sectors of the economy, as highlighted by the uptick in share prices of leading companies.


  1. The announcement of a potential Production Linked Incentive Scheme for 5G and spectrum sales led to an increase in prices of telecom stocks. Furthermore, the promise for issuing contracts for laying optical fibre in all villages, including remote areas, under the Bharatnet project through PPP in 2022-23 positively impacted telecom service companies.
  2. The expansion of and changes in the structure of the Indian Railways sent the stock price of wholly government-owned subsidiary IRCTC soaring as investors reacted favourably to the landmark ‘One Station, One Product’ idea that takes the ‘One District, One Product’ programme of the government to a newer dimension.
  3. Under the Atmanirbhar Bharat campaign, the government has prioritised local sourcing of equipment for India’s defence sector. In Budget 2022-23, the government has earmarked 68 per cent of total funds for domestic procurement. This prompted a 5 per cent increase in defence stocks.
  4. Stock prices of Indian sugar companies have recently been on the rise as companies are manufacturing ethanol blend—motor fuel containing ethyl alcohol that is at least 99 per cent derived from agricultural products. The finance minister announced an additional excise duty of Rs 2 per litre on unblended fuel, a move that will benefit sugar companies manufacturing ethanol blends. Consequently, sugar stocks rallied high as investors viewed this move positively.
  5. The finance minister announced an INR 19,500 crore expansion of the PLI scheme for the manufacturing of high-efficiency solar modules to facilitate greater domestic manufacturing and procurement to meet the ambitious goal of 280 GW of installed solar capacity by 2030. Allied solar power companies witnessed a positive uptick in share prices as investors responded with enthusiasm.
  6. Stocks of real estate and capital goods companies soared as the government announced extensive capital expenditures for the coming fiscal year. The emphasis on infrastructure growth was viewed positively by investors who foresee positive spillover effects of this key pillar of the budget on allied sectors of the economy. 

The budget, in its entirety, presents a push towards a green economy, supported by digitisation, digital inclusion and tech adoption. As India's private sector transitions to incorporate these elements in its business model, investors foresee a period of great wealth generation and economic prosperity. The extensive public spending planned for the next fiscal year supports and encourages this growth, promising to bring India to the threshold of economic dominance. 

This article was authored by Aarushi Aggarwal.