Finance Minister Nirmala Sitharaman unveiled India’s Union Budget for the fiscal year 2025-26, introducing several key initiatives aimed at boosting economic growth, enhancing infrastructure, and promoting social welfare. This budget seeks to establish a strong foundation for the country while ensuring that all sections of society benefit.
One of the budget’s primary objectives is to reduce the fiscal deficit to 4.4% of GDP, down from 4.8% last year. The government plans to achieve this through prudent fiscal management and targeted spending. Gross borrowings are projected at 14.82 trillion rupees, with net borrowings set at 11.54 trillion rupees to finance the deficit.
In a bid to support rural areas, the budget allocates 860 billion rupees for employment schemes, maintaining funding for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). To boost agricultural productivity, the government will promote high-yield crops and cotton while raising the limit for subsidised farm credits.
To enhance manufacturing, the government will launch the National Manufacturing Mission, which aims to strengthen production capabilities and expand export potential. Additionally, the budget increases the foreign direct investment (FDI) cap in the insurance sector from 74% to 100%, encouraging more foreign investment in the country.
Infrastructure development also takes centre stage in this budget. The government emphasises improving regional air connectivity to enhance transportation across India. Furthermore, a new policy will develop critical minerals, ensuring access to essential resources for various industries.
The tourism sector will benefit from plans to develop tourist sites that promote medical and spiritual tourism, aiming to significantly boost the tourism and hospitality industries and stimulate local economies.
Social welfare remains a priority, with measures designed to support the poor, youth, farmers, and women. The government’s focus on inclusive development highlights its commitment to ensuring that economic growth reaches all segments of society.
Overall, these initiatives reflect a comprehensive approach to fostering economic growth, enhancing infrastructure, and promoting social welfare in the upcoming fiscal year. The budget sets ambitious targets and lays the groundwork for a sustainable and equitable future for all Indians.
