By Ashok Hinduja
The Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, outlines a transformative agenda aimed at achieving “Viksit Bharat”; a developed, inclusive, and globally competitive India. The budget emphasises accelerating growth, promoting inclusive development, invigorating private investments, uplifting household sentiments, and enhancing the spending power of India’s rising middle class. The Government envisions a nation where zero poverty, quality education, accessible healthcare, full employment with skill development, greater women’s participation, and a thriving agricultural sector come together to drive sustainable development.
The Budget is built around four key engines; Agriculture, MSMEs, Investment and Export.
Agriculture: Agriculture receives significant focus. Prime Minister Dhan-Dhaanya Krishi Yojana aims to transform 100 low-productivity districts by converging existing schemes with targeted interventions to boost productivity, encourage crop diversification, improve post-harvest storage, and enhance irrigation facilities. The Mission for Aatmanirbharta in Pulses, a six-year initiative, focuses on increasing self-sufficiency in key pulses like Tur, Urad, and Masoor by supporting farmers with improved credit, technology, and remunerative prices. Additional initiatives include comprehensive programmes for fisheries, vegetables and fruits, establishing a Makhana (Foxnut) Board in Bihar, launching a National Mission on High Yielding Seeds, and supporting fisheries and cotton production.
In the budget, FM announced a series of initiatives for boosting tourism in India. This includes plans to ease travel for foreign tourists, develop prominent tourist sites, and promote medical tourism in collaboration with private players. Financial support for key infrastructure projects and Mudra loans for homestays will enhance connectivity, and hospitality services and most importantly, generate employment.
MSMEs: With over 1 crore registered MSMEs contributing significantly to manufacturing and employment, the Budget enhances their classification criteria by increasing investment and turnover thresholds. Credit Guarantees cover for micro and small enterprises are raised, and tailored instruments such as customised credit cards for micro-enterprises and a new Fund of Funds for startups (with a fresh Rs 10,000 crore government contribution) are introduced. Sector-specific schemes, including those for footwear, leather, toys, and food processing, aim to boost competitiveness, employment, and exports.
Investment: Investment is viewed through the prism of people, economy, and innovation. The government plans to invest in human capital by scaling up schemes like Saksham Anganwadi and Poshan 2.0, setting up 50,000 Atal Tinkering Labs to nurture innovation, and enhancing digital connectivity in rural schools and health centres. Expanding higher education capacity, particularly in IITs, and establishing Centres of Excellence in fields like Artificial Intelligence further strengthen the skill base. Infrastructure initiatives include a robust public-private partnership framework, an Asset Monetization Plan to reinvest Rs 10 lakh crore into new projects, urban reforms through an Urban Challenge Fund, and major transportation projects such as a revamped UDAN scheme and new greenfield airports. 100 percent of FDI in the Insurance sector will certainly help this under-penetrated category to create a social security safety net for citizens.
Exports: Export promotion is a central theme, with the creation of an Export Promotion Mission to coordinate export credit and support MSMEs, and the launch of “BharatTradeNet,” a unified digital platform for trade documentation and financing. Measures to integrate domestic manufacturing with global supply chains and foster Global Capability Centres in emerging tier-2 cities are also highlighted.
Reforms and Fiscal Management: The Budget emphasises comprehensive reforms in taxation, customs, and regulatory frameworks. The new personal income tax regime significantly increases the nil-tax threshold to Rs 12 lakh (Rs 12.75 lakh for salaried individuals), benefiting middle-class taxpayers and stimulating domestic consumption. The new tax structure will significantly reduce tax burdens, empowering individuals to invest in their future. Additionally, higher TDS for non-PAN holders ensures fairness in taxation, safeguarding compliant taxpayers. Reforms in TDS/TCS, customs tariff rationalisation, and amendments to the CGST Act aim to simplify compliance and reduce administrative burdens. Regulatory reforms include establishing a High-Level Committee for Regulatory Reforms, launching an Investment Friendliness Index for states, and further decriminalising outdated legal provisions through the Jan Vishwas Bill 2.0. It was heartening to note that FM announced a reduction of tariffs for the life-saving drugs required in cancer treatment: a sensitive touch for those braving the ordeal.
In summary, the Budget 2025-26 is a blueprint for the presence of India in the global high table in 2047. The direction of the Government is right. PM is confident and is able to carry the citizens of the nation towards the vision of VIKSIT BHARAT.
(Ashok Hinduja is Chairman, Hinduja Group of Companies, India.)
Views are personal and do not represent the stand of this publication.
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