A Budget for a Viksit Bharat: A Vision for India’s Future
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament today.
The Union Budget 2025, hailed by Prime Minister Narendra Modi as a game-changer, is set to propel India towards its goal of becoming a developed nation—Viksit Bharat. With a focus on innovation, entrepreneurship, and sustainable growth, the budget lays a strong foundation across multiple sectors, ranging from artificial intelligence to agriculture, toy manufacturing, and the gig economy.
A People-Centric Budget
Addressing the aspirations of millions, Finance Minister Nirmala Sitharaman presented the budget with the theme Sabka Vikas, underscoring a commitment to inclusive development. Quoting Telugu playwright Gurajada Appa Rao’s famous saying, “A country is not just its soil; a country is its people,” she outlined key principles of Viksit Bharat—zero poverty, quality education, comprehensive healthcare, skilled labour, higher participation of women in economic activities, and a food-secure India.
Among the most notable measures is the relief for middle-class taxpayers. Individuals earning up to ₹12.75 lakh annually will pay no income tax, leaving more money in their hands, stimulating consumption, and boosting savings. This move, part of the new tax regime, aligns with the government’s commitment to reducing the financial burden on salaried professionals and promoting economic growth.
Four Engines of Development
The budget identifies four key growth engines —agriculture, MSMEs, Investment, and Exports—each playing a crucial role in the country’s economic trajectory.
Agriculture: Enhancing Productivity and Prosperity
Recognising the need to strengthen India’s agricultural backbone, the government launched the Prime Minister Dhan-Dhaanya Krishi Yojana, targeting 100 low-productivity districts. The initiative aims to increase crop yields, improve irrigation facilities, and provide better credit access. A six-year Mission for Aatmanirbharta in Pulses will also focus on Tur, Urad, and Masoor dal production, ensuring self-sufficiency in essential food crops.
For farmers, credit availability under the Kisan Credit Card (KCC) has been enhanced from ₹3 lakh to ₹5 lakh, easing financial stress. Other agricultural measures include a National Mission on High Yielding Seeds, a five-year Mission for Cotton Productivity, and a Comprehensive Programme for Vegetables and Fruits to ensure fair prices and promote efficient supply chains.
MSMEs: Strengthening the Economy’s Backbone
MSMEs, which contribute 45% of India’s exports, received a significant boost. The investment and turnover limits for MSME classification have been raised, making more businesses eligible for benefits. A National Manufacturing Mission covering small, medium, and large industries aims to further the Make in India initiative.
A special scheme has been announced to support five lakh first-time entrepreneurs from Scheduled Castes, Scheduled Tribes, and women, providing loans of up to ₹2 crore. The footwear and leather industry will benefit from a Focus Product Scheme, expected to create 22 lakh jobs and increase turnover to ₹4 lakh crore.
Investment: Building a Resilient Future
The third pillar of this budget is investment in people, the economy, and innovation. A record 50,000 Atal Tinkering Labs will be set up in government schools, fostering scientific temper and innovation. Additionally, BharatNet will ensure broadband connectivity for all government secondary schools and primary health centres in rural areas.
An Urban Challenge Fund of ₹1 lakh crore has been introduced to boost infrastructure, encouraging cities to emerge as growth hubs. The Jal Jeevan Mission, extended until 2028, will focus on sustainable water supply. The budget also prioritises nuclear energy, with a ₹20,000 crore outlay for Small Modular Reactors, emphasising research and development.
A Modified UDAN Scheme will enhance regional connectivity, adding 120 new destinations, while the SWAMIH Fund 2 will expedite the completion of one lakh stressed housing units, ensuring relief to homebuyers.
Exports: Strengthening India’s Global Position
Exports, the fourth growth engine, will receive a push through the Export Promotion Mission. The introduction of BharatTradeNet, a unified platform for trade documentation and financing, will simplify international trade processes.
In a major policy shift, the government has raised the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%, boosting investor confidence. A National Framework for Global Capability Centres (GCCs) will help emerging Tier 2 cities become global outsourcing destinations.
Reforms as Fuel for Growth
Financial and regulatory reforms drive the budget. The Jan Vishwas Bill 2.0 will decriminalise over 100 provisions across various laws, encouraging ease of doing business. The High-Level Committee for Regulatory Reforms will review non-financial sector regulations, reducing compliance burdens and strengthening trust-based governance.
To ensure fiscal discipline, the government has set a fiscal deficit target of 4.4% for FY26, down from 4.8% in FY25. Revised estimates peg total expenditure at ₹50.65 lakh crore, with net tax receipts at ₹28.37 lakh crore, demonstrating a balanced approach to economic management.
A Vision for a Developed India
This budget reflects the government’s commitment to long-term economic resilience, innovation, and inclusive growth. Prioritising infrastructure, skilling, and financial empowerment paves the way for India to achieve its vision of Viksit Bharat. The road ahead is ambitious, but with bold policies and a clear direction, the nation stands poised to transform into a global powerhouse.
With reforms fuelling the economy’s engines, investments strengthening infrastructure, and a focus on human capital, the Viksit Bharat Budget 2025 is not just about numbers but about shaping the future of a prosperous and self-reliant India.