New Delhi: On Saturday, India’s Finance Minister Nirmala Sitharaman unveiled the annual budget for fiscal year 2025/26, outlining a set of measures designed to enhance agriculture and manufacturing output, while simultaneously working to increase the spending power of the middle class to drive economic growth.
Here are the key highlights from the budget:
- Geopolitical challenges and global uncertainties are expected to contribute to lower global growth over the medium term.
- A comprehensive focus on taxation, power sector reforms, urban development, mining, the financial sector, and regulatory reforms.
- A new six-year mission to boost pulses production, strengthening food security and agriculture output.
- Launch of a five-year mission aimed at increasing cotton production to meet both domestic and global demand.
- The credit guarantee cover for small and medium-sized enterprises (SMEs) has been enhanced to 100 million rupees, helping stimulate growth in this vital sector.
- A fund of funds will be established for start-ups, with a government contribution of 100 billion rupees to encourage entrepreneurship.
- A National Manufacturing Mission will be created to provide strategic policy support and further the goals of the ‘Make in India’ manufacturing program.
- The budget includes the creation of five national skilling centers, designed to build a more skilled workforce for the growing manufacturing sector.
- The government will provide 1.5 trillion rupees in 50-year interest-free loans to states for infrastructure development, aiming to modernize key sectors across the country.
- A Maritime Development Fund will be established with a corpus of 250 billion rupees to enhance India’s maritime capabilities.
- An Urban Challenge Fund worth 1 trillion rupees will be introduced to stimulate urban infrastructure projects and urbanization initiatives.
- Regional air connectivity is set to expand, with plans to increase routes to 120 new destinations over the next 10 years.
- A new policy will be introduced to support the development of critical minerals, ensuring resource security for India’s future growth.
