New Delhi: The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, marks a pivotal moment for India’s economy. This Union Budget 2025 highlights the empowering of the middle class while addressing the needs of various sectors, including agriculture, small and medium enterprises (MSMEs), and women. Framed within the broader vision of “Viksit Bharat,” the Union Budget 2025 aims to drive India toward developed-nation status by 2047, with a projected GDP growth rate of 6.3% to 6.8% for FY26.
Empowering the Middle Class
The Union Budget 2025 highlights to enhance the financial well-being of the middle class. The government has proposed significant tax relief measures to ease the burden on middle-income earners, who have been grappling with high inflation and stagnant wages. Expectations include adjustments in tax brackets and increased deductions under Section 80C, which could provide much-needed financial respite.
Focus on Agriculture and Farmers
The Budget emphasizes support for farmers through initiatives like the PM Dhan Dhanya Krishi Yojana, targeting low-productivity districts to assist approximately 1.7 crore farmers. A notable announcement is the establishment of a Makhana Board in Bihar, aimed at boosting the production and processing of this important local crop. Additionally, the introduction of Kisan Credit Cards will facilitate easier access to credit for farmers, further enhancing their financial stability.
Support for MSMEs and Start-ups
Recognizing MSMEs as crucial drivers of economic growth and employment, the Budget allocates loans up to ₹10 crore for these enterprises and ₹20 crore for start-ups. This move is designed to foster innovation and entrepreneurship, essential for job creation and economic resilience. The government also aims to simplify regulatory frameworks to enhance MSME contributions to the economy, thereby unlocking their potential as engines of growth.
Youth and Women Empowerment
The budget outlines a six-year mission focused on pulses cultivation, which not only addresses food security but also provides opportunities for rural employment. Furthermore, initiatives specifically targeting youth and women are integrated into various schemes aimed at skill development and employment generation. The government’s commitment to empowering women is reflected in its targeted programs designed to enhance their participation in economic activities.
Make in India Initiative
Continuing with the “Make in India” initiative, the Union Budget 2025 seeks to bolster manufacturing capabilities by expanding the Production Linked Incentive (PLI) scheme to new sectors such as green energy and advanced textiles. This expansion is expected to drive manufacturing exports beyond $500 billion by 2026, creating millions of jobs and reducing import dependency.
As a whole, the Union Budget 2025 is a comprehensive framework aimed at addressing the diverse needs of India’s population while ensuring sustainable economic growth. By focusing on middle-class welfare, supporting farmers, empowering youth and women, and enhancing MSME capabilities, this budget lays a solid foundation for India’s aspirations as one of the fastest-growing economies globally. As India navigates through global uncertainties, these strategic initiatives are crucial for maintaining economic momentum and achieving long-term developmental goals.
