Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, presented the Union Budget 2025-26 in Parliament, focusing on inclusive development under the theme “Sabka Vikas.” She began by quoting Telugu poet and playwright Shri Gurajada Appa Raos famous saying, A country is not just its soil; a country is its people. The Finance Minister presented the budget with the theme “Sabka Vikas” to stimulate balanced growth across all regions.
Broad Principles of Viksit Bharat
In line with this theme, the Finance Minister outlined the broad principles for achieving Viksit Bharat, encompassing:
Zero poverty
100% good quality school education
Access to high-quality, affordable healthcare
100% skilled labor with meaningful employment
70% women in economic activities
Transforming India into the food basket of the world
The Union Budget 2025-26 continues the government’s commitment to accelerating growth, ensuring inclusive development, encouraging private sector investment, and boosting middle-class spending power. The Budget prioritizes the (Garib), youth, farmers (Annadata), and women (Nari).
It also introduces transformative reforms in taxation, power, urban development, mining, financial sectors, and regulatory frameworks, focusing on India’s growth potential and global competitiveness.
Four Engines of Development
The Budget recognizes Agriculture, MSMEs, Investment, and Exports as the core drivers of Indias economic growth, with reforms acting as fuel, guided by inclusivity.
1st Engine: Agriculture
Prime Minister Dhan-Dhaanya Krishi Yojana: To enhance productivity, crop diversification, post-harvest storage, irrigation, and credit availability across 100 low-productivity districts.
Mission for Aatmanirbharta in Pulses: A 6-year initiative with a special focus on Tur, Urad, and Masoor, ensuring procurement by NAFED and NCCF.
Increased Kisan Credit Card (KCC) loan limits: Raised from 3 lakh to 5 lakh under a modified interest subvention scheme.
Comprehensive Programs for Vegetables, Fruits, and High-Yield Seeds.
Five-year Mission for Cotton Productivity to improve fiber quality and farmer incomes.
Rural Prosperity and Resilience Program: Encourages rural employment through skilling, technology, and investment, focusing on women, young farmers, and small landholders.
2nd Engine: MSMEs
Credit guarantee cover for MSMEs: Increased from 5 crore to 10 crore to boost capital access.
National Manufacturing Mission: To strengthen small, medium, and large industries, promoting “Make in India.”
Support for MSME exporters: Investment and turnover limits increased by 2.5 times.
Scheme for 5 lakh first-time entrepreneurs (women, SCs/STs): Providing loans up to 2 crore.
India as a Toy Hub: New scheme for global toy manufacturing under Made in India branding.
3rd Engine: Investment
1 lakh crore Urban Challenge Fund: To develop cities as economic hubs.
20,000 crore R&D and Innovation Fund: For private-sector-driven research.
50,000 Atal Tinkering Labs: To promote technology and innovation in schools.
Centre of Excellence in Artificial Intelligence for Education: 500 crore allocated to advance AI in learning.
UPI-linked credit cards with a 30,000 limit: Under PM SVANIDHI to facilitate digital transactions for small businesses.
Broadband connectivity to rural schools and healthcare centers.
Bharatiya Bhasha Pustak Scheme: Providing digital Indian language books for school and higher education.
Infrastructure Investments:
3-year pipeline of projects in PPP mode
1.5 lakh crore interest-free loans to states for capital expenditure
10 lakh crore Asset Monetization Plan (2025-30)
4th Engine: Exports
Launch of BharatTradeNet (BTN): A digital trade infrastructure for documentation and financing.
Modified UDAN Scheme: Expanding regional air connectivity to 120 new destinations.
BCD exemption on shipbuilding raw materials: Extended for 10 years.
BCD on frozen fish paste reduced from 30% to 5%, promoting seafood exports.
Support for domestic electronic manufacturing aligned with Industry 4.0.
National Framework for Global Capability Centers in tier-2 cities.
Reforms and Financial Sector Developments
Foreign Direct Investment (FDI) in Insurance: Increased from 74% to 100%.
Jan Vishwas Bill 2.0: Decriminalizing over 100 legal provisions.
Investment Friendliness Index of States: Encouraging competitive economic reforms at the state level.
