Synopsis
The Union Budget 2025-26 is poised to be a game-changer for India's ambition of becoming a $5 trillion economy, emphasizing sustainable growth and equity, as per a recent pre-budget survey.Key Takeaways
- Union Budget 2025-26 as a growth catalyst.
- India on track for $5 trillion economy.
- Survey predicts 6-7.9% growth rate.
- Key growth drivers identified.
- Focus on agriculture and sustainability.
New Delhi, Jan 29 (NationPress) India's ambition to achieve a $5 trillion economy necessitates policies that foster sustainable and inclusive growth. The Union Budget 2025-26 has the potential to serve as a significant catalyst for this growth while ensuring both equity and efficiency in the economic landscape, according to a pre-budget survey released on Wednesday.
As the country gears up for the Budget, the economic outlook appears optimistic, indicating a collective confidence among businesses in India's growth trajectory.
Grant Thornton Bharat's pre-budget survey indicates that India is on course to become the fourth-largest global economy by 2026.
The majority of survey participants anticipate economic growth ranging from 6-6.9 percent in FY 2025-26, while 22 percent predict an even more robust growth rate of 7-7.9 percent.
Key drivers of growth identified include reforms enhancing the ease of doing business (68 percent), effective management of inflation and monetary policy (57 percent), increased foreign direct investment (FDI) coupled with robust trade agreements with major economies (54 percent), government incentives aimed at boosting domestic consumption (51 percent), and advancements in technology (49 percent).
In terms of corporate tax priorities, the Budget should focus on simplifying GST compliance (44 percent), lowering corporate tax rates for small and medium enterprises (30 percent), enhancing tax dispute resolution measures (15 percent), introducing more tax incentives for startups (14 percent), and creating new tax incentives for research and development (13 percent).
The survey also pinpointed crucial industries poised to drive growth, such as agriculture and food processing, automotive, consumer and retail, healthcare and pharmaceuticals, technology, financial services, real estate, and energy and renewables.
The agriculture sector stands as a foundational pillar of India’s economic growth. The previous Union Budget 2024-25 allocated Rs 1.52 lakh crore to this sector, making notable advancements in productivity, research, and resilience.
"To position India as a global leader in agriculture, the forthcoming budget must concentrate on several critical areas, including streamlining exports, enhancing supply chains, increasing access to credit, empowering women in agriculture, and promoting sustainable practices," the report stated.
The Union Budget 2025 offers a unique opportunity to enact transformative reforms across various industries. Strengthening fiscal policies, incentivizing innovation, and enhancing regulatory efficiency will be vital for sustained economic growth, the report underscored.
