Union Budget 2025: A bold step towards Viksit Bharat
The 2025 Union Budget focuses on manufacturing, agriculture, and MSMEs to reach Viksit Bharat by 2047 by proposing improved credit access, regulatory reforms and trade digital infrastructure to increase productivity and create jobs.
Union Budget 2025: A bold step towards Viksit Bharat
India skipped the manufacturing phase and progressed directly from agriculture to services during its development because of the software boom that happened in the eighties. It had skipped the manufacturing segment. The government has correctly shifted its attention to the manufacturing sector to create jobs for the 7-8 million employable youth who enter the job market annually.
Agriculture
The Dhan Dhanya Krishi Yojana in the Union Budget 2025 intends to develop 100 districts through agriculture measures to support 17 million farmers. Up to ₹5 lakh short-term credit will be extended through Kisan Credit Cards to support 77 million farmers and dairy farmers along with fishermen.
MSMEs
The budget acknowledges MSMEs alongside investments and exports as additional drivers to reach Viksit Bharat goals. Through their combined 36% manufacturing and 45% export contributions MSMEs can transform India into a global manufacturing center. The budget raised investment classification limits for all MSMEs to 2.5 times and turnover limits to two times to enable higher scale efficiencies and technological upgrades while improving their access to capital. The upgraded classification limits permit MSMEs to expand while maintaining their existing incentives.
Exports
The creation of BharatTradeNet establishes a digital public infrastructure for international trade which serves as a single platform for trade documentation and financial solutions. The platform enables businesses from India's manufacturing sector to seamlessly connect with worldwide supply networks. The Exports Promotion Mission with defined sectoral and ministerial goals will enable straightforward access to export credit options and cross border factoring assistance along with MSME support to address non-tariff obstacles in foreign markets.
Focus on compliance to boost investments
The budget's essential measure is to enact regulatory reforms that will support manufacturing through cost reductions in doing business operations. The upcoming income tax bill presentation next week will reveal government strategies which we can currently preview through the budget details about extended tax return filing deadlines and decriminalization of over 100 legal provisions.
