FY26 profit growth hinges on revenue trajectory: UTI AMC CIO Subramaniam

There may not be any major changes in direct taxation, given that simplification has already been carried out in recent years

Economic growth is likely to improve in the second half of 2024-25 (FY25) due to an increase in government expenditure, says VETRI SUBRAMANIAM, chief investment officer of UTI Asset Management Company (AMC). In an interview with Abhishek Kumar, Subramaniam says cash transfers to citizens by state governments can also contribute to consumption growth. Edited excerpts:

 

What are your expectations from the upcoming Budget?

 

We expect fiscal consolidation to continue, with the Budget targeting a fiscal deficit of 4.5 per cent in 2025-26 (FY26). The government will likely prioritise capital expenditure (capex), in line with its recent strategy. We expect key