New Delhi, Feb 3
India’s Union Budget, totaling Rs 50.65 lakh crore, is designed to boost entrepreneurship, innovation, and investment. The focus on public-private partnerships (PPP) for infrastructure, along with 50-year interest-free loans for state projects, is expected to have a positive impact on both India’s GDP and state economies, according to PHDCCI President Hemant Jain.
India is positioning itself as a global economic powerhouse with reforms and initiatives that attract investment and foster innovation. The budget prioritizes key areas such as agriculture, the middle class, manufacturing, MSMEs, women empowerment, and job creation.
The PHDCCI projects that the strategic focus of the budget will contribute over 1% to India’s GDP growth in 2025-26 and create thousands of new jobs. Jain noted that the increased budget allocation will stimulate growth across various sectors. A significant reform in income tax, including exemptions for incomes up to Rs 12 lakh and a 30% tax rate on incomes above Rs 24 lakh, will encourage consumption and boost industrial production.
Rising disposable incomes will lead to increased consumer spending, encouraging businesses to expand operations, invest more, and increase production. The Dhan Dhanya Krishi Yojna, benefiting 1.7 crore farmers in 100 districts, will boost rural development, agricultural productivity, and farm incomes.
The mission for self-reliance in pulses aims to reduce food inflation and reliance on imports, while the creation of a Makhana Board in Bihar will improve processing and add value, benefiting farmers.
Additionally, enhanced focus on MSMEs will generate employment and drive economic growth, helping India move closer to its goal of becoming a developed nation (Viksit Bharat).
Finance Minister Nirmala Sitharaman highlighted the government’s ongoing focus on capital expenditure (capex), which is projected to be 4.3% of GDP this year. The fiscal deficit for the coming year is expected to be 4.4%.
