Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in the Lok Sabha, marking her eighth consecutive budget presentation. This budget aims to accelerate India’s economic growth, secure inclusive development, and boost private sector investments.
Key Themes and Objectives:
- Economic Growth and Inclusivity: The budget focuses on accelerating growth through reforms in taxation, urban development, and the financial sector while emphasizing inclusive development.
- Four Growth Engines: Agriculture, MSMEs, Investments, and Exports are identified as the key growth drivers, fueled by comprehensive reforms and guided by the spirit of inclusivity.
- Focus Areas: The budget outlines ten broad areas, including agricultural growth, rural prosperity, employment-led development, innovation, and energy security.
Major Announcements:
- Agriculture and Rural Development:
- Launch of the Prime Minister Dhan-Dhaanya Krishi Yojana to enhance productivity and crop diversification.
- National Mission on High Yielding Seeds to improve climate resilience.
- Enhanced credit support through Kisan Credit Cards (KCC).
- MSME and Startups:
- Enhanced credit guarantee cover and revised MSME classification criteria.
- Introduction of customized credit cards for micro-enterprises.
- New schemes for first-time entrepreneurs, focusing on women and marginalized communities.
- Investments and Infrastructure:
- Public-private partnership projects to boost infrastructure.
- Establishment of a National Manufacturing Mission to promote ‘Make in India.’
- Significant investments in clean tech manufacturing and medical education expansion.
- Tax Reforms:
- Introduction of a new income-tax bill aiming for simplicity and reduced litigation.
- Rationalization of TDS/TCS to ease compliance.
- Personal income tax reforms focusing on the middle class, including increased exemption limits.
- Social and Welfare Initiatives:
- Expansion of medical education and day-care cancer centers in district hospitals.
- Enhanced support for gig workers and street vendors.
- Focus on skill development with the establishment of National Centers of Excellence.
Fiscal Outlook:
- The fiscal deficit for 2025-26 is estimated at 4.4% of GDP.
- Increased capital expenditure to drive economic growth and employment.
The Union Budget 2025 sets the stage for transformative reforms aimed at achieving ‘Viksit Bharat’ by 2047, fostering economic resilience, and positioning India as a global economic leader.
