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Budget 2025-26: India’s Roadmap to Growth & Prosperity
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The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, is a comprehensive roadmap aimed at accelerating India's growth, ensuring inclusive development, and positioning the country as a global economic powerhouse. With a strong focus on agriculture, MSMEs, infrastructure, and innovation, this budget lays the foundation for a Viksit Bharat (Developed India) by 2047. Here’s a breakdown of the key highlights and what they mean for India’s future.
1. Agriculture: The First Engine of Growth
Agriculture remains the backbone of India’s economy, and the budget introduces several initiatives to boost productivity, sustainability, and rural prosperity.
Prime Minister Dhan-Dhaanya Krishi Yojana: This program aims to enhance agricultural productivity in 100 low-productivity districts by focusing on crop diversification, sustainable practices, and improved irrigation facilities. It is expected to benefit 1.7 crore farmers.
Mission for Aatmanirbharta in Pulses: A six-year mission to achieve self-sufficiency in pulses like Tur, Urad, and Masoor. The government will procure these pulses at remunerative prices, ensuring farmers get fair returns.
National Mission on High Yielding Seeds: This mission will focus on developing and propagating climate-resilient, high-yield seeds to ensure food security and boost farmers' incomes.
Makhana Board in Bihar: A dedicated board will be established to promote the production, processing, and marketing of makhana (fox nuts), providing a significant boost to Bihar’s rural economy.
2. MSMEs: The Second Engine of Growth
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s manufacturing and services sector. The budget introduces several measures to support their growth and global competitiveness.
Enhanced Credit Availability: The credit guarantee cover for micro and small enterprises has been increased from ₹5 crore to ₹10 crore, enabling additional credit flow of ₹1.5 lakh crore over the next five years.
Customized Credit Cards for Micro Enterprises: A new scheme will provide micro-enterprises with credit cards offering a ₹5 lakh limit, with 10 lakh cards to be issued in the first year.
Fund of Funds for Startups: A new Fund of Funds with a government contribution of ₹10,000 crore will be set up to support startups, particularly in 27 focus sectors critical for Atmanirbhar Bharat.
3. Investment: The Third Engine of Growth
Investment in people, infrastructure, and innovation is crucial for India’s long-term growth. The budget outlines several initiatives to boost investment across sectors.
Public-Private Partnerships (PPP) in Infrastructure: Each infrastructure-related ministry will develop a 3-year pipeline of PPP projects, with states encouraged to participate. The government will also provide ₹1.5 lakh crore in interest-free loans to states for capital expenditure.
Asset Monetization Plan 2025-30: Building on the success of the first plan, the government aims to monetize assets worth ₹10 lakh crore to fund new infrastructure projects.
Nuclear Energy Mission: To support India’s energy transition, the government plans to develop 100 GW of nuclear energy by 2047, with a focus on Small Modular Reactors (SMRs).
4. Exports: The Fourth Engine of Growth
To boost India’s global trade, the budget introduces several measures to enhance export competitiveness and integrate India into global supply chains.
Export Promotion Mission: A mission-driven approach to boost exports, with sectoral and ministerial targets. The mission will facilitate easy access to export credit and tackle non-tariff barriers in overseas markets.
BharatTradeNet: A digital public infrastructure platform for international trade, simplifying trade documentation and financing solutions.
Support for Global Supply Chains: The government will identify key sectors for integration into global supply chains, with a focus on Industry 4.0 and high-skill manufacturing.
5. Reforms: The Fuel for Growth
The budget emphasizes the importance of reforms across taxation, power, urban development, mining, and the financial sector to drive growth and improve ease of doing business.
Tax Reforms: The government has reaffirmed its commitment to simplifying the tax regime, with a new income tax bill set to be introduced. The budget also proposes rationalizing TDS/TCS rates and thresholds to ease compliance burdens.
Financial Sector Reforms: The FDI limit in the insurance sector has been raised to 100%, and the government will simplify the regulatory framework to attract more foreign investment.
Regulatory Reforms: A High-Level Committee for Regulatory Reforms will review and streamline non-financial sector regulations, certifications, and licenses to enhance ease of doing business.
6. Focus on Inclusivity and Social Welfare
The budget also prioritizes social welfare and inclusivity, with several initiatives aimed at uplifting vulnerable sections of society.
Saksham Anganwadi and Poshan 2.0: The program will provide enhanced nutritional support to 8 crore children, 1 crore pregnant women, and 20 lakh adolescent girls.
PM SVANidhi Scheme: The scheme for street vendors will be revamped, offering enhanced loans, UPI-linked credit cards, and capacity-building support.
Social Security for Gig Workers: Gig workers will be provided with identity cards, healthcare under PM Jan Arogya Yojana, and registration on the e-Shram portal.
7. Innovation and Technology
Innovation is at the heart of India’s growth strategy, and the budget introduces several measures to promote research and development.
Deep Tech Fund of Funds: A new fund will be set up to catalyze next-generation startups in deep tech sectors.
Centre of Excellence in AI for Education: A new center with an outlay of ₹500 crore will be established to leverage artificial intelligence in education.
National Geospatial Mission: This mission will develop foundational geospatial infrastructure to support urban planning, land records modernization, and infrastructure projects.
8. Tax Relief for the Middle Class
In a significant move, the budget provides substantial tax relief for the middle class under the new tax regime. The tax-free income limit has been raised to ₹12 lakh, with revised tax slabs as follows:
This restructuring is expected to leave more money in the hands of taxpayers, boosting household consumption and savings.
Conclusion
The Union Budget 2025-26 is a bold and forward-looking document that sets the stage for India’s transformation into a developed nation by 2047. With a strong focus on agriculture, MSMEs, infrastructure, and innovation, the budget aims to create a robust and inclusive economy. The emphasis on reforms, social welfare, and tax relief for the middle class further underscores the government’s commitment to ensuring that the benefits of growth reach every section of society.
As India embarks on this journey towards Viksit Bharat, the budget provides a clear roadmap for achieving sustainable and inclusive development. The focus on innovation, technology, and global competitiveness will ensure that India not only meets its domestic aspirations but also emerges as a global leader in the 21st century.
Jai Hind!
For more detailed insights into the budget, you can refer to the annexures and explanatory memorandums provided by the Ministry of Finance. Also, here’s the PDF with a simple breakdown of the Economic Survey for you.
