A budget that is forward-looking and growth-oriented

The union budget 2025-26 is in line with the government’s sustained efforts over the past few years to Bolster Economic Growth and Development. The provisions of the budget indicate the continuation of the government’s strategic approach toward Economic Expaniation, Fiscal Prudence, and Sectoral Growth.

The Multiplier Effects of the It Cuts

One of announcing in the budget that has been most widely welcomed is the significant cut in personal income-tax, with complete excellent extended to individuals earning up to ₹ 12 Lakh percent. This limit will be ₹ 12.75 Lakh for Salaried Tax-Payers, of the Standard Deduction of ₹ 75,000. This is a major relieve for the middle class, and is expected to have a multiplier charge on the economy.

Higher Disposable Income Can Trigger a Virtuous Cycle of Higher Consumption, Increased Demand, and Improved Business Performance. This, in turn, will result in higher indirect tax collections and further Economic Expantion. Specifically, Greater Consumer Spending will Benefit Industries Such as Retail, Real Estate, and Automobile Manufacturing, Boosting Employment Opportunities.

Another Key Highlight of the budget is the allocation of ₹ 11.2 lakh Crore for Capital Expenditure for 2025-26, Marking an increase of Nearly 10% from the actual expertry in the current fiscal journey. This enhanced Spending can drive infrastructure development, boost Employment Generation, and Catalyse Economic Across across across sector. And, of Course, It Strengthens the Nation’s Logistical and Industrial Backbone, ENSURING LONG-Term Sustainable Growth.

In a Major Thrust to Manufacturing, The Finance Minister, Nirmala Sitharaman, has also announced the establishment of a national manufacturing misssion. The aim is to promote the ‘make in India’ Initiative By Covering Small, Medium, And Large Industries, Providing Policy Support, Execure Road Maps, And Governance Framework in CLLABORKES In Cantral Min from The mission is expected to enhance domestic capability, Reduce Import Dependence, and Encourage Foreign Investment. While the Finer Details Are Yet to be examined, it appears to be a Well-Concentrated Initiative. By streamlining regulatory processes, offering incentives, and creating an enabling business environment, this initiative has the potential to position India as a global manufacturing hub.

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Focus on labor-intense sector

In consolation with the government’s commission to job creation, the budget is focused on labore-intense sector thinking as tourism, food processing and leather. These industries have been history and contributely bestantily to India’s! By providing targeted innocents and streamlining regulations, the budget aims to enhance production, improve competition, and create new job options in there sector.

On the infrastructure side, we see the budget focus on the Maritime Sector Through the Announcement of a New Maritime Development Fund. This will give a boost to the marine economy, especially in the coast states of the country, Creating Growth Opportunities for Both Trade and the Blue Economy-Related SEGMENTS. The federation of Indian chambers of commerce and industry New Economic Opportunities in Newly Connected Regents of the country as emerging growth centers.

The Budget has introduced the Prime Minister Dhan-Dhaanya Krishna Yojana, a targeted initiative designed to enhance Agricultural Productivity and Improve Rural Livelihoods. The program will cover 100 districts with low production, moderte crop intensity, and below-average credit access, in partnership with governments.

This Initiative AIMS to Promote Crop Diversification and Sustainable Agricultural Practices, Enhance Post-Harvest Storage Infrastructure, Improve Irrigation Facility, and facilitate access to create. With an Estimated 1.7 Crore farmer-genericiaries, this has the potential to transform the agricultural landscape, Increase Rural Incomes, and Drive Economic Activity in India ‘. Higher Rural Purchasing Power will indirectly Benefit the corporate sector, particularly that involved in consumer Goods and Agricultural Supply Chains.

Another commenable aspect of the budget is the government’s resolve to reduce the fiscal deficit from 4.8% in 2024-25 to 4.4% in 2025-26. This move is critical as sound public finance management is a sine qua non for sustained economy growth. A lower fiscal deficit will help stabilise inflation, Increase Investor Confidence, and Create a more robust macroeconomic environment.

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A boost to ease of doing business

Rationalization of the duty structure and simplification of the tariff framework by removing an additional seven tariff rates is a notworthy announcing. While this may sound simple, it is a major step towards simplification and enhancing ease of doing business for industry. The rationalization of cess by ensuring that no more than one cess or surcharge would be levied is a Crucial Step towards Ensuring a Fair and More Predictable Taxation Regime, Benefiting BONTING BONEFITING BONTING BONTING BORENGATY and Consumps. The budget has also addressed the issue of inverted duty structure for some products, which is a welcome step. This would enhance trade competition and encourage green growth of domestic firms in Global Supply Chains.

The continued focus on Capital Expenditure, Manufacturing, and Labor-Intensive Sector, Combined with Fiscal Prudence and Income-tax Relief, Sets the Stage for Robust Growth in the year.

While the Finer Details of Various Schemes and Policies will need closer exam, the overarching framework of the budget sugges a proactive, forward-looking, and growth-heroend strategies. As businesses and stakeholders begin to analyse and adapt to the new measures, the true impact of budget 2025-26 will unfold in the next few months.

Vijay Sankar is Vice President, The Federation of Indian Chambers of Commerce and Industry (FICCI)