Opinion | Union Budget 2025: Propelling India Towards Viksit Bharat 2047
Presented by Finance Minister Nirmala Sitharaman, this budget is not just an annual financial exercise, but a well-calibrated booster that aligns policies, resources, and reforms to accelerate India’s trajectory toward becoming a developed economy
As India journeys towards its ambitious goal of Viksit Bharat 2047, the Union Budget 2025 serves as yet another crucial stage in the country’s economic ascent. Presented by Finance Minister Nirmala Sitharaman, this budget is not just an annual financial exercise, but a well-calibrated booster that aligns policies, resources, and reforms to accelerate India’s trajectory toward becoming a developed economy.
In space technology, a multi-stage rocket is required to reach outer space. Each stage ignites at a crucial juncture, providing the necessary thrust to move higher and faster. Similarly, successive budgets and policy initiatives act as progressive stages in India’s economic journey, ensuring sustained growth, inclusion, and competitiveness on the global stage. This year’s budget builds upon the government’s decade-long reforms and aims to spur investments, enhance social equity, and fortify India’s resilience amid global uncertainties.
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KEY THEMES AND PILLARS OF BUDGET 2025
The Union Budget 2025 is structured around four major engines of economic growth:
- Agriculture
- MSMEs
- Investment in Infrastructure
- Exports
These engines are fueled by reforms and steered by the guiding principle of inclusivity, with the ultimate goal being Viksit Bharat — a fully developed India.
The budget addresses key areas through six structural reforms:
- Taxation
- Power Sector
- Urban Development
- Mining
- Financial Sector
- Regulatory Framework
Each of these reforms is a vital step in ensuring India’s economic policies are future-ready and aligned with global best practices.
AGRICULTURE: THE FIRST ENGINE OF GROWTH
Agriculture remains the backbone of India’s economy, and this budget aims to enhance productivity and empower farmers with financial and infrastructural support.
Prime Minister Dhan-Dhaanya Krishi Yojana: A targeted initiative to boost agricultural productivity in 100 districts by improving irrigation, storage, and credit availability. This program will directly benefit 1.7 crore farmers, ensuring a sustainable rise in rural incomes.
Mission for Aatmanirbharta in Pulses: A six-year plan to achieve self-sufficiency in pulses, focusing on Tur, Urad, and Masoor to ensure stable food supply and price control.
Makhana Board in Bihar: A specialized institution to support the production and value addition of makhana, benefiting thousands of farmers in the state.
Mission for Cotton Productivity: A comprehensive plan to enhance cotton yield, benefiting textile farmers and strengthening India’s Make in India initiative for textiles. These initiatives reflect the government’s commitment to rural prosperity, self-reliance, and global competitiveness in agriculture.
MSMES: THE SECOND ENGINE OF GROWTH
Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in employment generation and industrial output. This budget takes multiple measures to support and expand the MSME sector.
Revision in MSME Classification: Investment and turnover limits have been enhanced by 2.5 times, allowing businesses to grow without losing MSME benefits.
Enhanced Credit Availability: The credit guarantee cover for MSMEs has been increased from Rs 5 crore to Rs 10 crore, unlocking an additional Rs 1.5 lakh crore in credit.
Fund of Funds for Startups: A new Rs 10,000 crore fund will provide venture capital to promising startups, driving innovation and employment.
Credit Cards for Micro Enterprises: A Rs 5-lakh credit card scheme will be rolled out for 10 lakh micro enterprises in the first year. By empowering MSMEs with access to capital, credit, and technology, India is reinforcing its position as a global manufacturing hub.
INFRASTRUCTURE INVESTMENT: THE THIRD ENGINE OF GROWTH
To fuel India’s immediate $5 trillion economy target, the government continues to prioritize large-scale infrastructure projects.
50-year interest-free loans to states: Rs 1.5 lakh crore has been allocated to encourage capital investments in state-level infrastructure projects.
Expansion of Jal Jeevan Mission: Rs 10 lakh crore has been earmarked to provide 100% rural tap water connectivity by 2028.
National Manufacturing Mission: This initiative will accelerate Make in India by focusing on clean-tech industries, semiconductors, and EV batteries.
Urban Challenge Fund of Rs 1 lakh crore: To modernize urban transport, housing, and sanitation, ensuring sustainable city development.
Power Sector Reforms: Incentives have been introduced to strengthen electricity distribution networks, ensuring 24×7 reliable power supply. These investments not only enhance economic output but also create millions of jobs across sectors.
EXPORTS: THE FOURTH ENGINE OF GROWTH
As India eyes higher integration with global trade, export-oriented reforms have been a cornerstone of Budget 2025.
BharatTradeNet: A Digital Public Infrastructure for international trade, enabling seamless export documentation and logistics.
Export Promotion Mission: A government-backed ₹20,000 crore fund to provide credit and regulatory support to exporters.
Sectoral Boost for Leather, Toys, and Food Processing: Policy interventions to increase employment and drive India’s brand as a global leader in these sectors. The emphasis on exports aligns with India’s broader goal of securing a dominant share in global supply chains.
TAXATION REFORMS: A RELIEF FOR THE MIDDLE CLASS
One of the most headline-grabbing announcements of this budget is the historic relief in personal income tax.
No tax for incomes up to Rs 12 lakh: This move will increase disposable incomes, boosting domestic consumption and savings.
Rationalized tax slabs: The new tax structure simplifies compliance and makes tax filing easier for individuals and businesses.
Increase in TDS thresholds: To reduce tax burdens on small businesses and professionals, TDS thresholds for various categories have been increased. These tax reforms are a major step towards simplifying India’s tax system and improving ease of living.
REFORMS: THE FUEL FOR GROWTH
The budget also introduces a slew of regulatory and governance reforms to improve business efficiency and foreign investment attractiveness.
High-Level Committee for Regulatory Reforms: A year-long review process to eliminate unnecessary compliance burdens.
Investment Friendliness Index of States: A competitive framework to rank states based on business policies and incentives.
Amendment to the Atomic Energy Act: This will open up India’s nuclear energy sector for private participation, ensuring 100 GW of nuclear power by 2047. These reforms are vital in building a robust, transparent, and globally competitive Indian economy.
A BUDGET THAT TAKES INDIA HIGHER, FASTER
India’s Union Budget 2025 is a well-calibrated policy roadmap that aligns with the nation’s long-term vision of Viksit Bharat. It is an investment in human capital, infrastructure, and business ecosystems, ensuring inclusive and sustainable growth.
Like a multi-stage rocket, India’s economic journey requires progressive thrusts at key moments. This budget is yet another stage in our collective journey to economic self-sufficiency, global competitiveness, and prosperity.
As we move closer to 2047, every policy reform, infrastructure project, and economic incentive adds velocity to our national growth trajectory. With the visionary leadership of Prime Minister Narendra Modi, able governance and strategic policymaking, India is well on its journey to becoming a Viksit Bharat and a global leader.
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