While presenting her record making 8th consecutive Union Budget for year 2025-26, Finance Minister Nirmala Sitharaman focused on four engines – Agriculture, MSME, Investment, and Exports – to drive the goal of ‘Viksit Bharat’. This budget places a strong emphasis on revitalizing the agricultural sector. ‘Dhan-Dhaanya Krishi Yojana’ aims to enhance agricultural productivity and sustainability. ‘Kisan Credit Card’ scheme plans to facilitate short-term loans of up to ₹5 lakh for approximately 7.7 crore farmers, fishermen, and dairy farmers. ‘Mission for Aatmanirbharta in Pulses’, focusing on pulses, is set to promote self-reliance in pulse production. ‘Makhana Board’ in Bihar underscores the commitment to regional agricultural development.
Over 1 crore registered MSMEs, employing 7.5 crore people, generating 36% of manufacturing and 45% of exports have positioned India as a global manufacturing hub. To help them achieve higher efficiencies of scale, technological upgradation and better access to capital; measures like enhancement in investment and turnover limits, Customized Credit Cards with ₹5 lakh limit for micro enterprises, provision of term loans up to INR 2 crore for SC/ST women first-time entrepreneurs, focus scheme for footwear and leather sector, ‘National Manufacturing Mission’ for furthering “Make in India” and several other schemes will be introduced.
The third engine – Investment – encompasses investing in people, economy and innovation.
Export Promotion Mission will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets. Upgradation of infrastructure and warehousing for air cargo will promote export of horticulture produce.
Furthermore, reforms in personal income tax structure is anticipated to boost household consumption, savings, and investment. The budget projects a nominal GDP growth of 10.1% and aims to reduce the fiscal deficit to 4.4% of GDP. Overall, the Union Budget 2025-26 presents a balanced approach, aiming to invigorate the economy through tax reliefs, support for agriculture, MSMEs, investment, and incentives for manufacturing and exports. While it addresses immediate economic challenges and seeks to boost consumer confidence, the effectiveness of these measures in achieving long-term growth will depend on their implementation and the pursuit of deeper structural reforms.
By Dr. Mayur J. Kapadia, Former AGM, Quality Control Dept, GNFC Ltd, Bharuch, Gujarat – TC Member & Resource Person, BIS – Trainer – Technical Writer – Book Editor
