Union Budget 2025-26: A new era of growth and empathy for common man

The Union Budget 2025-26 was among the most anticipated in recent times. Inflation has impacted everyone, prompting Indians across the board to exhort the government to take bold measures that would bring financial relief to the masses. Much to everyone’s delight, the budget was delivered on the wishlist, at least to some extent. 

The highlight of the budget was the elimination of income tax for those earning up to Rs 12 lakh per annum. This move is expected to reenergise consumption, which will lead to a boost in investments and economic growth. 

Some of the key highlights of the budget: 

Investing in Human Capital through Health and Education

The budget prioritizes healthcare and education and rightly so.  Thirty-six lifesaving medicines, including for cancer patients and those with rare ailments, will be fully exempt from basic customs duty (BCD). The government will also add 10,000 seats nationally in medical colleges. 

In the education sector, initiatives like the National Centres of Excellence in AI training will equip India’s youth with the skills needed to compete in the global economy. The creation of Atal Tinkering Labs and the distribution of electronic books under the Bharatiya Bhasha Pustak scheme will strengthen educational infrastructure and prepare India’s future workforce.

Infrastructure and Innovation

An emphasis on infrastructure development and capital investments is evident in the budget. Increased funding for urban development, energy security, and clean technology investments signals long-term planning for the country’s future. Notably, significant investments in research and development, particularly in deep technology and AI, will position India as a leader in innovation.
The setting up of the National Geospatial Mission and a Gene Bank for crop germplasm further highlights the government's commitment to technological and agricultural independence.

Kisan is King

Agriculture continues to be a pillar of India’s economy. The launch of the Prime Minister Dhan-Dhaanya Krishi Yojana aims to improve agricultural efficiency in 100 districts, demonstrating the government’s commitment to environmentally friendly farming practices. The six-year Mission for Aatmanirbharta in Pulses will reduce dependency on imports and stabilize domestic supply. Few foods are as intrinsic to national identity as dal, and now, fittingly, pulses are an economic hero as well. 

The creation of a Makhana Board in Bihar and focus on easier access to credit through Kisan Credit Cards will invigorate rural economies. The incentives for the growth of fruit, vegetable, and seafood production and agro-processing will further establish agriculture as a driving force for national development. 

Empowering MSMEs 

It was heartening to see the budget recognizing the importance of Micro, Small, and Medium Enterprises (MSMEs) in economic growth and job creation. The expansion of credit coverage for small businesses and the launch of customized credit cards for micro-enterprises will empower these companies. Increasing investment and turnover thresholds for MSMEs will remove financial constraints and promote expansion.
With a sustained focus on ease of doing business, reduced regulatory burdens, and streamlined processes, the budget creates an enabling environment for MSMEs. This will also create jobs and enhance India’s manufacturing capabilities.

The Path Forward

The budget is in line with Prime Minister Narendra Modi’s vision of "Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayaas." It aims at economic growth, social well-being, and all-round development. The successful implementation of this budget will be crucial in turning India’s aspirations for a Viksit Bharat into reality. 

(Disclaimer: The views expressed above are the author's own and do not reflect those of DNA)

(About Author: Sanjaya Mariwala is the president of IMC Chamber of Commerce and Industry and Executive Chairman & Managing Director of OmniActive Health Technologies)