The Union Budget 2025-26 lays out a comprehensive roadmap for India’s economic growth by focusing on four key engines: Agriculture, MSMEs, Investments, and Exports. This budget aims to strengthen rural development, boost industrial productivity, and promote digital and infrastructure growth while maintaining fiscal discipline.
- Strengthening Agriculture for Rural Prosperity
The government has prioritized agriculture as a key economic driver with several new schemes:
Prime Minister Dhan-Dhaanya Krishi Yojana: This initiative promotes crop diversification, irrigation, and financial support for 1.7 crore farmers across 100 districts.
Self-Reliance in Pulses: A six-year mission to boost the production of Tur, Urad, and Masoor to reduce import dependence.
Vegetables & Fruits Program: A partnership with farmer producer organizations to ensure fair prices and better supply chain management.
Mission for Cotton Productivity: A five-year plan to increase yield and sustainability in cotton farming.
Enhanced Agricultural Credit: Short-term loans for farmers and dairy producers increased from ₹3 lakh to ₹5 lakh.
Urea Plant in Assam: A new facility in Namrup, Assam, will produce 12.7 lakh metric tons annually, ensuring fertilizer availability.
- MSMEs: Boosting Manufacturing and Employment
Micro, Small, and Medium Enterprises (MSMEs) play a vital role in India’s economy, and the government has proposed several measures to strengthen them:
Higher Turnover Limits: MSME classification turnover limits increased to 2.5 times the current value.
Credit Support: ₹5 lakh credit cards for microenterprises and ₹2 crore loans for first-time entrepreneurs.
Support for Footwear & Leather: This sector is expected to create 22 lakh jobs and generate ₹4 lakh crore in turnover.
Toy Manufacturing: A national scheme to make India a global hub for toy production.
Clean Tech Manufacturing: Incentives for solar PV cells, EV batteries, and wind turbines under the ‘Make in India’ initiative.
- Investments in Digital and Infrastructure Growth
The budget proposes large-scale infrastructure investments to accelerate economic development:
Atal Tinkering Labs: 50,000 labs will be set up in schools to foster innovation.
AI for Education: ₹500 crore allocated for an AI Centre of Excellence in Education.
Healthcare Investments: 10,000 new medical seats and 200 cancer daycare centers in district hospitals.
Public-Private Partnerships (PPP): A three-year pipeline for infrastructure projects with incentives for states.
Jal Jeevan Mission: Extended till 2028 to ensure 100% rural water supply coverage.
Greenfield Airport in Bihar: New airport development and expansion of Patna Airport capacity.
Shipbuilding & Maritime Growth: A ₹25,000 crore Maritime Development Fund to boost shipbuilding and port infrastructure.
- Enhancing Exports and Global Trade
India aims to increase exports and integrate into global supply chains through several initiatives:
Export Promotion Mission: A government-led initiative to facilitate easier export credit and trade financing.
BharatTradeNet: A unified digital trade platform to streamline documentation and logistics.
Increased FDI in Insurance: The foreign direct investment limit in the insurance sector raised from 74% to 100%.
Support for Industry 4.0: Special incentives for electronic manufacturing, AI-driven automation, and high-skill talent.
Ease of Doing Business: Simplified KYC processes and investment-friendly tax reforms to attract foreign investors.
Tax Reforms: Simplifying Compliance & Reducing Burden
New Income Tax Slabs: Under the revised tax regime, the exemption limit increased from ₹3 lakh to ₹4 lakh.
TDS and TCS Thresholds: Higher exemption limits for interest income, rent, and insurance commissions.
Charitable Trusts: Registration extended to 10 years, reducing compliance burdens.
Startups & Investments: Tax benefits extended till 2030 to encourage entrepreneurship and funding from pension funds.
Fiscal Discipline & Budget Allocation
Total Expenditure: ₹50.65 lakh crore
Total Receipts: ₹34.96 lakh crore
Defence Budget: ₹6.81 lakh crore
Rural Development: ₹1.90 lakh crore
Agriculture & Allied Activities: ₹2.33 lakh crore
Education: ₹1.28 lakh crore
Healthcare: ₹98,311 crore
Fiscal Deficit: 4.4% of GDP
Conclusion:
The Union Budget 2025-26 aims to empower farmers, boost MSMEs, enhance investments, and increase exports. With higher tax exemptions, digital transformation, and infrastructure development, it positions India as a global economic powerhouse. The focus on agriculture, manufacturing, and digital growth ensures a strong foundation for future prosperity.This budget reaffirms India’s commitment to self-reliance, sustainable development, and inclusive growth.