As we present India’s Budget 2025, it is essential to reflect on our economic journey—from independence to liberalization and beyond. Born just four years after independence, I have seen India evolve from a struggling economy to an emerging global power. While we have achieved remarkable progress, our aspirations remain high, and this budget aims to address the challenges that stand between India and its goal of becoming a developed nation.
This budget is built on the foundation of economic resilience, fiscal prudence, and a strong vision for the future. It aligns with our aspiration to accelerate growth, enhance productivity, and improve the quality of life for all citizens.
Economic Performance and Key Indicators
1. GDP Growth and Fiscal Targets
India’s GDP growth is projected at 6.8% for FY 2024-25, driven by robust consumption, investment, and industrial expansion.
Fiscal deficit is targeted at 5.3% of GDP, continuing the path of consolidation while ensuring necessary public investments.
The government remains committed to maintaining a balance between fiscal discipline and growth-enhancing measures.
2. Per Capita Income and Economic Progress
India's per capita GDP stands at $2,900, reflecting steady improvements but still behind high-income economies.
While post-liberalization reforms have accelerated growth, there is a strong need for structural reforms to boost productivity and income levels.
Lessons from China and post-war Japan indicate that sustained double-digit growth is needed to propel India towards a high-income economy.
Key Budget Priorities for a Developed India
1. Investing in Human Capital: Education & Skill Development
₹1.5 lakh crore allocated for education with a focus on vocational training, AI-driven learning, and STEM education.
Strengthening higher education and research institutes to enhance India’s global competitiveness.
New skill development initiatives aimed at equipping youth for the demands of Industry 4.0.
2. Boosting Infrastructure & Urban Development
₹10 lakh crore for infrastructure projects, including roads, railways, and smart cities.
Expansion of mass rapid transport systems and urban planning initiatives to support rapid urbanization.
Incentives for green buildings, sustainable energy, and affordable housing projects.
3. Enhancing Ease of Doing Business & Economic Reforms
Reduction in corporate tax rates for MSMEs, enabling easier access to credit.
Simplification of GST and tax compliance frameworks to encourage entrepreneurship.
Push for greater digital governance and transparency to reduce bureaucratic inefficiencies.
4. Strengthening the Manufacturing Sector & ‘Make in India’
₹5 lakh crore dedicated to ‘Make in India’ and PLI (Production Linked Incentive) schemes.
Special emphasis on electronics, semiconductor manufacturing, and defense production.
Reforms in labor laws and land acquisition to promote industrial growth.
5. Financial Inclusion & Digital Economy
Expansion of UPI-based transactions and fintech infrastructure to drive financial inclusion.
Increased access to credit for MSMEs and self-help groups, with priority lending in rural areas.
Strengthening of digital public infrastructure to ensure economic participation from all sectors.
6. Governance, Institutions, & Transparency
New policy measures to improve judicial efficiency and accelerate contract enforcement.
Expansion of e-governance initiatives to ensure transparency in public services.
Strengthening of anti-corruption mechanisms and tax compliance frameworks.
7. Social Security, Healthcare & Equitable Growth
₹2.8 lakh crore allocated to healthcare, focusing on universal health coverage and telemedicine.
Expansion of PM Garib Kalyan Yojana, ensuring food and income security for vulnerable groups.
Affordable housing, rural employment schemes, and pension reforms to address income inequality.
Vision 2047: India as a Developed Nation
The essence of progress lies in aspiration and dissatisfaction. While we have achieved significant milestones, we cannot afford to be complacent. The path to becoming a $10 trillion economy requires sustained reforms, strategic investments, and a relentless focus on innovation and governance.
This budget is a step towards that vision—a budget that not only promotes growth but ensures prosperity for every Indian, bridging the divide between India and Bharat.
We move forward with the belief that India’s best days are yet to come.
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