UNION BUDGET 2025 TRADE OFF AND GROWTH IMPETUS

The Union Budget 2025, presented amidst a charged parliamentary session, maintained the course for India’s economic future and ended with a surprise forego to boost growth, writes Ashish Bhatia

- Ashish Bhatia

With a focus on accelerating growth, fostering inclusivity, and unlocking national potential, the budget pursued transformative reforms across key sectors. The vision of Viksit Bharat—zero poverty, a 100 per cent skilled workforce, and a self-reliant economy—was at the core of the budget’s roadmap and FM Nirmala Sitharaman’s eighth consecutive Union Budget speech.

Economic outlook and growth trajectory

Emphasising India’s position as one of the fastest-growing major economies, the budget underscored the nation’s resilience amid global challenges. The next five years present a unique opportunity to drive balanced growth, strengthen domestic industries, and integrate further into global supply chains. India’s GDP growth remains strong, projected at 7.2 per cent for FY 2025, continuing its upward trajectory. Inflation has been managed within the four to five per cent band, and Foreign Direct Investment (FDI) inflows have seen a 15 per cent year-on-year increase. With a Capital Expenditure (CapEx) of Rs. 10.18 lakh crore, the government is prioritising infrastructure, manufacturing, and job creation. The budget also commits Rs. 1.5 lakh crore in interest-free loans to states for infrastructure projects under public-private partnerships (PPPs).

Key Sectoral Reforms and Initiatives

Agriculture & Rural Economy