New Delhi:
As India prepares for the presentation of the Union Budget 2025, Defence Minister Rajnath Singh has reassured the nation that the upcoming budget will be inclusive, catering to every section of society. This assurance comes ahead of Finance Minister Nirmala Sitharaman’s record eighth consecutive budget presentation in the Lok Sabha.
In a significant gesture, President Droupadi Murmu met with Finance Minister Nirmala Sitharaman and Union Minister of State for Finance Pankaj Chaudhary at the Rashtrapati Bhavan, offering the traditional ‘dahi-chini’ as a sign of good luck. This meeting underscored the importance of the budget in shaping the country’s economic trajectory.
The Economic Survey, tabled in Parliament on Friday, projects India’s economy to grow between 6.3% and 6.8% in the next financial year, highlighting robust economic fundamentals supported by a stable external account, fiscal consolidation, and private consumption.
Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 on February 1, 2025, in the Lok Sabha. Defence Minister Rajnath Singh’s statement that the budget will be for every section of society sets the tone for a comprehensive and inclusive financial plan.
The budget speech will detail the government’s fiscal policies, revenue and expenditure proposals, taxation reforms, and other significant announcements. These measures are expected to address critical issues such as economic growth, unemployment, and relief for the middle class, which have been pressing concerns in recent times.
The Economic Survey has provided a positive outlook, projecting economic growth between 6.3% and 6.8% for the financial year 2025-26. This growth is anticipated to be driven by strong economic fundamentals, including a stable external account, fiscal consolidation, and stable private consumption. The survey also emphasizes the government’s plans to strengthen long-term industrial growth by focusing on research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods.
Food inflation is expected to ease in the fourth quarter of FY25 due to the seasonal decline in vegetable prices and the arrival of the Kharif harvest. Additionally, a good Rabi production is anticipated to help keep food prices in check in the first half of FY26. However, adverse weather conditions and rising international agricultural prices pose potential risks to inflation.
India’s foreign exchange reserves remain robust, covering 90% of external debt and providing an import cover of over ten months. This stability in capital flows has been crucial in supporting India’s external strength.
The budget session of the Parliament, which commenced on January 31, will continue until February 13, with the second part starting on March 10 and concluding on April 4. The session has already seen significant discussions, including the joint address by President Droupadi Murmu.
Notably, the formal employment sector has shown significant growth, with net Employees’ Provident Fund Organisation (EPFO) subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24. This growth indicates a positive trend in employment and economic stability.
The budget is expected to prioritize infrastructure development, agriculture, MSMEs, and overall economic stability. Measures such as increased capital expenditure (capex), GST rationalization, and income tax reforms are anticipated to boost economic growth and provide relief to taxpayers. The government’s emphasis on R&D, MSMEs, and capital goods aims to enhance productivity, innovation, and global competitiveness.
As the nation awaits the detailed announcements, the overarching theme of inclusivity and comprehensive economic planning is clear. The Union Budget 2025 is poised to be a pivotal moment in India’s economic journey, addressing both immediate challenges and long-term growth aspirations.
