Key takeaways: Job creation in agri and MSME in focus

THE UNION BUDGET presented by finance minister Nirmala Sitharaman is fiscally prudent, prioritises consumption, provides for capex, and focuses on job creation—much-needed elements for Viksit Bharat.

- Kaku Nakhate, PRESIDENT & INDIA COUNTRY EXECUTIVE, BANK OF AMERICA

The Budget brought a lot of cheer to the middle class as the finance minister announced no tax on annual income of up to ₹12 lakh. The move will put a staggering ₹1 lakh crore in the hands of the middle class, boosting consumption amid stagnating wage growth, as flagged in the latest Economic Survey. This is a monumental step.

In an uncertain global economic environment, it is reassuring to see that the fiscal deficit will reduce to 4.4% in FY26 from 4.8% in FY25. With nominal GDP expected to grow at 10.1% in FY26, India will continue to remain the fastest-growing major economy and become the world’s third-largest by the end of this decade.

Overall, the Budget is inclusive and creates jobs by supporting sectors such as agriculture and MSME. It promotes employment and entrepreneurship opportunities in labour-intensive sectors like footwear, leather, textile, and tourism.