Synopsis
The Union Budget 2025-26 is designed to stimulate growth and job creation, with a focus on inclusive development, as acknowledged by leading industry chambers. Significant tax relief for the middle class and support for vital sectors are key highlights.Key Takeaways
- Strong Growth Template for economy
- Tax Relief for individual taxpayers
- Focus on MSMEs and startups
- Infrastructure Investment to spur growth
- Commitment to technology-driven economy
New Delhi, Feb 1 (NationPress) The Union Budget 2025-26 lays out a robust and persuasive framework aimed at enhancing growth and creating jobs—two essential goals for our economy today—with targeted measures to promote inclusive development, leading industry chambers stated on Saturday.
The President of CII, Sanjiv Puri, remarked that the policy decisions aimed at bolstering vital sectors like agriculture, MSMEs, investment, and exports through reforms across six domains, in partnership with state governments, are commendable and align with the CII’s long-term advocacy.
He added, "In navigating the intricate economic landscape, the Budget presents a thorough reform framework to cultivate an India that is prosperous, inclusive, equitable, climate-conscious, innovation-friendly, and future-ready, drawing us closer to the vision of a Viksit Bharat."
One pivotal announcement regarding personal income tax indicates that there will be no tax obligation on earnings up to Rs 12 lakh, an increase from the previous Rs 7 lakh, providing a crucial boost to consumption demand by putting more cash into the hands of consumers.
Moreover, the increase in public capital expenditure is expected to generate growth momentum through its ripple effect. Initiatives like the introduction of a second monetization scheme and the encouragement of PPP and state investment in infrastructure are praiseworthy.
The establishment of the Rs 1 lakh crore urban challenge fund is set to enhance urban infrastructure, stimulate demand and employment, and attract private investment, according to CII.
"The ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ aimed at 100 Aspirational Agri districts, which addresses low productivity, moderate crop intensity, and below-average credit conditions, is a welcome initiative," Puri stated.
Overall, the focus on tax proposals has been predominantly on rationalization and simplification, while easing compliance burdens and litigation, reflecting the government’s commitment to ‘Trust First, Scrutiny Later’.
As reported by Assocham, Finance Minister Sitharaman has met broader expectations by providing substantial relief to individual taxpayers and maintaining a fiscal deficit of 4.4 percent of GDP.
Assocham President Sanjay Nayar noted that the Finance Minister has placed her trust in the middle class to spearhead consumption-driven growth.
"Simultaneously, there is a clear emphasis on unlocking the potential of MSMEs, startups, and exports," he added.
"Prioritizing agriculture, rural demand, agro and food processing, warehousing, and marine products is expected to infuse greater vitality into the rural landscape of the country," he elaborated.
As highlighted by Prime Minister Modi, the government has forfeited revenue amounting to Rs 1 lakh crore due to direct tax exemptions and reliefs, primarily benefiting the middle class.
This approach is notably bold and is anticipated to yield positive outcomes for economic growth, according to the apex industry chamber.
Nasscom emphasized that the budget reinforces India's dedication to a technology-driven, innovation-led economy, paving the way for global leadership in digital transformation and DeepTech.
"The government’s strategic emphasis on AI, fostering the startup ecosystem, research, and skill development reflects its vision for a future-ready India," it stated.
The Budget builds upon India’s technology-first growth strategy and establishes a foundation for an innovation-led economy.
