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India Budget Makes Bet on Manufacturing; Transaction Tax Hike Spooks Markets

The government raised the securities transaction tax on derivatives by over 50%, causing a 1% drop in equity markets amid efforts to boost manufacturing and economic growth.

Summary by Times of India
The upcoming Union Budget presents an opportunity to strengthen domestic backward linkages through incentives for input industries, MSME clusters, technology adoption, and compliance infrastructure.

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India budget makes bet on manufacturing; transaction tax hike spooks markets

·United Kingdom
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Times of India broke the news in India on Saturday, January 31, 2026.
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