The Union Budget aims to push the economy onto a higher growth trajectory
Union Finance Minister Nirmala Sitharaman presented the Union Budget for the ninth time in the Parliament, and it was on a Sunday, a rarity in the fiscal annals of independent India.
In her 85-minute speech, Sitharaman proposed three ‘kartavyas’ to speed up the reform momentum towards Viksit Bharat. The first was to accelerate and sustain economic growth by enhancing productivity and competitiveness and building resilience to volatile global dynamics. The second was to make people partners in India’s path to prosperity. The third Kartavya focused more on inclusivity and aimed to ensure that every family, community, region, and sector has access to resources, amenities, and opportunities for meaningful participation.
To create a supportive ecosystem, the Budget laid out a roadmap for sustainable growth and long-term development anchored firmly in structural reforms aimed at enhancing productivity, efficiency, and economic resilience. She also placed emphasis on cutting-edge technologies, including AI applications, which can serve as force multipliers for better governance. Keeping self-reliance at the core, the government, she said, has built domestic manufacturing capacity, energy security and reduced critical import dependencies, along with ensuring citizen-centric development and undertaking reforms to support employment generation, agricultural productivity, household purchasing power and universal services. To tackle high export tariffs, particularly those imposed by the US, the budget has focused on enhancing competitiveness through duty exemptions, support for MSMEs, digitised custom procedures, etc.
According to analysts, the Budget is futuristic with a clear vision as it aims to support long-term economic growth by strengthening the manufacturing sector, encouraging technology-led development, with a boost to infrastructure development, and improving export competitiveness. It also speaks of rejuvenating the legacy industrial sectors. Manufacturing has received a renewed push, reflecting the government’s recognition of its role in employment generation and economic resilience. A robust manufacturing base can help India integrate more effectively into global value chains while reducing excessive dependence on imports. The FM also announced the launch of the India Semiconductor Mission 2.0.
The emphasis on technology-driven growth is a welcome step. Technology has fundamentally altered the way economies function, and India’s strategic shift towards building robust technological and innovative capabilities is therefore both necessary and timely. Initiatives that promote digital infrastructure and technology adoption across sectors are expected to create a paradigm shift in economic activity. In a boost to the software industry and information technology-enabled services, the government has proposed to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data service centres from India. There is an emphasis on capital expenditure. The announcement of seven high-speed rail corridors aimed at improving regional connectivity underscores this commitment. Overall, the budget has not focused on populism, though some states are going to polls this year. It doesn’t rely on giveaways or gimmicks. It is growth-orientated. However, there’s hardly anything specific for Goa. The state had submitted a long list of demands, including a special package of Rs 500 crore for Kushavati district and an Rs 700 crore package to boost tourism. Hopefully, Goa will be able to accrue benefits from the budgetary provisions in the sectors of tourism, agriculture, ITES, MSMEs, etc.
