On February 1, 2025, Union Finance Minister Nirmala Sitharaman presented India's Union Budget for 2025-2026, marking the eighth consecutive budget under the NDA government. The budget emphasizes plans to drive growth through investments across several key sectors, including agriculture, manufacturing, and social welfare, as part of the government's vision for 'Viksit Bharat' or developed India.
During her speech, Sitharaman elaborated on the government's commitment to inclusivity, focusing on women, youth, farmers, and the economically disadvantaged. "This budget is dedicated to accelerating growth, driven by our aspirations for a 'Viksit Bharat.' Our economy remains the fastest growing among all major economies," she declared, highlighting the ambitious objectives set forth by her ministry.
A significant aspect of the budget is the introduction of the PM Dhan Dhanya Krishi Yojana, which aims to empower around 1.7 crore farmers by enhancing productivity, boosting crop diversification, and improving irrigation and credit access. This initiative reflects the government’s dedication to strengthening agricultural resilience, as emphasized by Sitharaman.
Popularly known as the 'Budget to Meet the Aspirations of GYAN' (Garib, Yuva, Annadata, and Nari Shakti), the budget also seeks to expand opportunities for first-time women entrepreneurs. Under new provisions, 5 lakh women and marginalized communities will have access to loans up to ₹2 crore, thereby fostering economic empowerment.
Another notable proposal includes measures to boost the toy manufacturing sector, leveraging India's potential to become a global hub for toy production as part of the 'Make in India' campaign. This initiative not only aims to create jobs but is also expected to increase competitiveness and innovation within the local manufacturing industry.
Industry stakeholders from various sectors have provided diverse perspectives on the budget's provisions. Kumar Gaurav Dhawan, Commissioner of Central GST, praised the budget for its inclusivity across all sectors, particularly focusing on agriculture and micro, small, and medium enterprises (MSMEs). Dhawan stressed the importance of empowering these segments to drive economic growth sustainably.
Abhi Bansal, Chairman of the ASSOCHAM Punjab State Council, highlighted the revamped income tax threshold, raising the rebate limit from ₹7 lakh to ₹12 lakh. This change is poised to augment individual purchasing power and, ideally, stimulate consumption across various segments of the economy.
Rakesh Bhalla, Chairman of the ASSOCHAM Chandigarh UT Council, echoed positive sentiments by affirming the budget's balanced approach, particularly noting tax relief for the middle class and extended support to MSMEs, including the doubling of tax guarantee limits.
While the optimistic projections received endorsements from industry leaders, political leaders such as Congress's Sachin Pilot voiced concerns about the budget’s apparent neglect of farmers and rural communities. Pilot characterized the budget as 'short-sighted' and questioned its effectiveness, criticizing the government for failing to fulfill prior commitments, particularly around guaranteed minimum support prices for crops.
Pilot reiterated the importance of enhancing public welfare schemes, lamenting the unchanged allocation for MNREGA, which plays a pivotal role in supporting rural livelihoods and infrastructure.
Madhya Pradesh Minister of Sports and Youth Welfare, Vishwas Sarang, recognized the budget as 'development-oriented and welfare-driven,' commending its focus on diverse sectors and emphasis on the upliftment of marginalized groups. Sarang's remarks showcased the contrasting viewpoints within the political spectrum.
With investments set as the third engine of growth, India's focus on upscale programs surrounding education, health, and rural development aims to prepare the nation for its declared goal of becoming developed by 2047. Sitharaman announced plans to add 10,000 medical college seats, addressing the burgeoning demand for healthcare professionals.
Critiques also emerged as opposition leaders highlighted the need for more targeted investment and systemic reforms, particularly noting the rising fiscal deficit projected at 4.4% of GDP by the end of the fiscal year.
Overall, the Union Budget 2025-2026 outlines ambitious reform initiatives spanning multiple sectors, reflecting the government's vision to stimulate growth and empower various segments of society. While it received commendations for its breadth and intent, the mixed reviews reveal underlying tensions about the effectiveness of fiscal approaches and their practical impact on the grassroots economy.