Synopsis
The recent Union Budget of ₹50.65 lakh crore focuses on public-private partnerships and interest-free loans, aiming to enhance India's GDP and strengthen state economies. With a focus on agriculture, MSMEs, and job creation, this budget is positioned to drive innovation and investment across various sectors.Key Takeaways
- ₹50.65 lakh crore allocated for the budget
- Focus on public-private partnerships for infrastructure
- Strategic emphasis expected to boost GDP growth by over 1%
- Reforms in income tax to stimulate consumption
- Investment in MSMEs to generate employment
New Delhi, Feb 3 (NationPress) The emphasis on public-private partnerships (PPP) in infrastructure, combined with 50-year interest-free loans for state initiatives, is anticipated to generate a multiplier effect that will not only elevate India's GDP but also fortify state economies, asserted PHDCCI's President Hemant Jain on Monday.
India is swiftly establishing itself as a global economic powerhouse, with ongoing reforms and initiatives designed to attract investments and promote innovation.
With a remarkable allocation of ₹50.65 lakh crore, the Union Budget places a premium on agriculture, the middle class, manufacturing, MSMEs, women's empowerment, and job creation.
PHDCCI forecasts that the strategic emphasis of the Budget will add over 1 percent (100 bps) to India's GDP growth in 2025-26, generating thousands of new jobs nationwide.
"The augmented budget allocation is poised to drive significant growth across multiple sectors. A pivotal reform in income tax, featuring exemptions for incomes up to ₹12 lakh and a 30 percent tax rate on incomes exceeding ₹24 lakh, will invigorate consumption demand and boost industrial output," Jain explained.
The increase in disposable incomes is expected to enhance consumer spending, prompting businesses to expand operations, ramp up investments, and boost production.
The Dhan Dhanya Krishi Yojna, which supports 1.7 crore farmers across 100 districts, is set to significantly enhance rural development, agricultural productivity, and farmers' incomes.
"Additionally, the initiative for self-reliance in pulses aims to decrease food inflation and lessen reliance on imports, while a specialized Makhana Board in Bihar will improve processing and value addition, benefiting farmers," Jain added.
Heightened attention to MSMEs will cultivate employment opportunities, accelerate economic growth, and bolster India’s transition towards Viksit Bharat, he noted.
As per Finance Minister Nirmala Sitharaman, the government's focus has shifted towards capital expenditure (capex) in recent years, now significantly boosting consumption. The anticipated government spending on capex is 4.3 percent of GDP this year, with an expected fiscal deficit of 4.4 percent in the upcoming year.
