The Union Budget for 2025-26 was announced today in Parliament. It aims to boost economic growth, ensure development for all, increase private investment, and improve the financial wellbeing of India’s growing middle class. Here’s a summary of key points from Finance Minister Nirmala Sitharaman’s speech.
Key Themes of the Budget
- The focus is on national development for all, referred to as ‘Sabka Vikas.’
- It aims for a developed India, which includes:
- No poverty.
- Quality education for all children.
- Access to affordable healthcare.
- Skills training leading to employment.
- High participation of women in the economy.
- Support for farmers to enhance food production.
- Development strategies target various groups such as the poor, youth, farmers, and women, focusing on ten main areas:
- Boosting agriculture.
- Enhancing rural economies.
- Promoting inclusive growth.
- Strengthening manufacturing.
- Supporting small businesses (MSMEs).
- Creating jobs.
- Investing in innovation and infrastructure.
- Securing energy supplies.
- Promoting exports.
- Encouraging innovation.
Agriculture Initiatives
- A new programme called ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ will improve farming in 100 districts with low productivity. It aims to boost crop yields, offer better irrigation, and provide financial support to 1.7 crore farmers.
- A ‘Rural Prosperity and Resilience’ initiative will create job opportunities in rural areas, especially for women and youth.
- The government aims to enhance palm oil and pulse production, investing in long-term farming strategies.
- New support for the fishing industry is planned, as India is a major global producer of seafood.
- A National Mission for high-yield seeds will aid agricultural productivity.
Support for Small and Medium Enterprises (MSMEs)
- MSMEs, which employ millions and contribute significantly to exports, will receive improved access to credit and increased investment limits to encourage growth.
- New initiatives will support women and marginalized groups in entrepreneurship with loans and training.
Investment Strategies
- The budget emphasizes investing in education, healthcare, and infrastructure.
- Programs like Saksham Anganwadi and Poshan 2.0 will enhance nutrition for children and mothers.
- Digital initiatives will improve educational resources and connectivity for remote areas.
Focus on Exports
- An Export Promotion Mission will facilitate support for MSMEs in global markets.
- A unified platform, BharatTradeNet, will streamline trade documentation.
Regulatory Changes
- The budget proposes tax reforms to encourage investments and simplify compliance for businesses.
- A new income tax bill will also be introduced to provide clearer taxation guidelines.
Fiscal Overview
- The fiscal deficit is estimated to be 4.4% of GDP, with projections for careful fiscal management in the coming years.
For more details, you can view the full budget speech here.
