RECIPE FOR GROWTH

Union Budget 2025-26 is expected to lay the blueprint for the Narendra Modi government's third term. But how will Finance Minister Nirmala Sitharaman deliver growth in the face of a slowing economy, global uncertainty, high inflation and tepid private investments?

- SURABHI

THE UNION BUDGET is always a significant annual event that sets the policy tone and agenda for the next financial year. But Budget 2025-26 will be even more special and vital. It will set apart Nirmala Sitharaman as just one of the few Finance Ministers in India who have presented as many as eight Union Budgets. Apart from her, just three previous Union Finance Ministers Morarji Desai, P. Chidambaram, and Pranab Mukherjee-have had the privilege to present eight or more Union Budgets.

However, apart from this rare honour, the Union Budget 2025-26 comes at a time when the economy is facing challenges on almost all fronts. Domestically, growth is slowing and is now estimated at 6.4% for this fiscal and at less than 7% in FY26. Retail inflation has remained stubbornly high and is seen to average 4.8% in FY25. This has impacted urban consumption demand, which has shown signs of moderation in recent months.

Meanwhile, manufacturing growth is still sputtering, and private investment and capex are yet to fully kick in. Job creation and skilling and upskilling of workers and providing policy support to micro, small and medium enterprises (MSMEs) remain other key challenges.