Budget 2025 highlights path towards Rs 10-trillion 'Viksit Bharat' economy

Budget 2025 Highlights: This budget is an excellent Budget, addressing the current challenges and also the upcoming opportunities

Budget 2025 Highlights: The Union budget 2025 addressed a much needed consumption boost for the economy. The tax relief measures that were long overdue has brought a cheer of joy to middle-class, salaried income people. Budget 2025 aimed at providing structural and reform oriented measures for the economy to sail in the testing times. With fiscal consolidation in place, the budget has shown the path for prudent utilisation of resources.

Consumption boost:

The consumption growth has slowed in recent times due to higher inflation and food price shocks. Slower income growth both in urban and rural areas had stressed the demand conditions. Apart from announcing the tax relief measures, the budget also addressed the need to revive demand conditions in the economy. 

Investment remains upbeat:

Despite the capex for the ongoing fiscal year being revised downwards by nearly Rs 1 trillion, the expenditure for financial year 2025-26 (FY26) remains at elevated Rs 11.2 trillion. The Budget also outlined an execution strategy through Public-Private Partnerships (PPP), to revive the private capex cycle. Also continuing with the past budgets, states will continue as partners in capital formation with Rs 1.5-trillion interest free loan allocation and undertake reforms.

 

Boost for manufacturing:

To make effective use of supply chain disruptions caused by geopolitical escalations and economic sanctions, India Budget 2025 offers an opportunity for the challenges imposed. The boost for MSMEs and Startups will address the Make in India initiative and Aatmanirbhar Bharat.

 

Technological and innovation:

In the fast changing environment led by AI technologies, setting up of the Centre of Excellence in Artificial Intelligence for education should lead the way for India to attain an eminent position. The focus also remains on primary education with 50000  Atal Tinkering labs.

 

Regulatory reforms:

The ease of doing business is addressed by regulations in line with global developments. Doing away with the outdated laws and banking on new reforms framework will boost the productive capacity. Financial sector reforms, which are overdue, are likely to get boost from Committee for Regulatory Reforms.

 

Fiscal consolidation:

Budget 2025-26, while giving a boost to the economy, did hold the fiscal health by adhering to the targets. Similar to last year, this year also witnessed the current fiscal deficit below the budgeted target by 10 bps and similarly for the upcoming fiscal below the glide path to 4.4 per cent of gross domestic product (GDP).

Agri and rural:

The rural and the agriculture economy has received attention towards enhancing agricultural productivity, crop diversification and sustainable agriculture practices. Rural Prosperity and Resilience to address the migration related issues through increased opportunities.

 

Health:

The budget also paved the way for healthy living. The nutritional needs of the growing population are addressed. With nearly Rs 1 trillion allocation, the health infrastructure is prioritised.

 

Overall this budget is an excellent Budget, addressing the current challenges and also the upcoming opportunities. With this, the country is poised towards marching 'Viksit Bharat' form Rs 4 trillion economy to Rs 10 trillion economy in  the early next decade.

 

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Disclaimer: Anand Rathi is Founder & Chairman of Anand Rathi Group. Views are his own.