This budget has the distinction of recognizing the gig workers, working with e-commerce platforms, register them with E-Shrm Platform and granting them the benefit of health cover, apart from encouragement given to labour intensive sectors. For long Bhartiya Mazdoor Sangh and Swadeshi Jagran Manch had been demanding welfare measures for gig workers. — Dr. Ashwani Mahajan

While concerns were being expressed about health of the economy, due to deceleration in GDP growth in last two quarters, depreciating rupee, continuing inflation, decline in consumption, rising trade deficit, declining forex reserves, it was real challenge for the government to spur manufacturing growth, push self reliance in agriculture, supporting the farmers and address imbalance in agriculture production, reducing dependence on foreign countries regarding pulses and edible oils, and also give tax relief to middle income tax payers, and at the same time address inflationary concerns. Budget 2025-26 has tried to balance all these concerns and take the economy forward.

But, despite all odds, fiscal health of the country was in a fairly good position, with lower fiscal deficit, booming taxes, both direct and indirect taxes, comfortable NRI remittances and increasing investment announcements in the current fiscal year. This could give space to the Finance Minister, to offer big relief to the small tax payers and continue with big capex, apart from greater provisions for health, education, agriculture and manufacturing.

Big Relief to Middle Class

Though, Narendra Modi government had been giving some relief to the middle class in terms of income tax, but the narrative had been that middle class gets a very raw deal in every successive budget. But in its first full budget in Modi 3.0, Finance Minister has offered a real big relief to middle class, by freeing them from paying any tax up to Rs 12 Lakhs of annual income, or Rs one lakh monthly income. In case of salaried class, this exemption is 12.75 lakhs, as they get benefit of standard deduction, of Rs 75,000 from their income. Though, people with income beyond Rs 12 Lakh, are not found to be similarly lucky, but they also get some relief, though, not as big as people earning up to Rs one lakh monthly income.

Manufacturing Push

Since, the start of Aatmanirbhar Bharat policy, a demand has been picking up to give a big push to domestic manufacturing. Budget 2025-26, has the distinction of giving big push to manufacturing, especially in clean tech sector, including Electric Vehicles’ batteries and motors, wind power equipments and other renewable power equipment. MSME Manufacturing Mission, enhanced credit Guarantee for MSME; credit card for micro enterprises, with Rs 5 Lakh limit, to address their working capital needs; extension of PLI beyond earlier list; and several other measures to improve manufacturing to insulate the country from Chinese dominance are important initiatives of this budget. The present endeavor of the government will go a long way towards the goal of making India, a manufacturing hub, and that too through MSME sector.

This budget has tried to remove obstacles in the clean tech path, by way of push given to lithium batteries, motors for electric vehicles and other clean-tech manufacturing. It’s important to note that due to our excessive dependence on imported batteries, motors for electric vehicles and also solar cells, our import bill has been rising and in future nation could even be exploited due to our dependence on imported components. Therefore, it is giving push to Aatmanirbhar Bharat and saving nation from exploitation by foreigners, especially Chinese. National Manufacturing Mission for MSMEs, various schemes for start-ups, encouragement to toy industry to make India ‘Toy Hub’ of the world, are other main highlights of the budget.

Encouraging MSMEs

Budget gives new boost to the MSME sector by giving enhanced credit guarantee cover to MSMEs at all levels, start-ups and export oriented units; measures for labour intensive sectors, more specifically leather and footwear sector, toys, food processing and others. More specifically manufacturing mission has been started covering small, medium, large; all kinds of industries for furthering make in India.

Agriculture Push

Constitution of ‘Makhana Board’ is exemplary step towards promoting a wonder nutritious agricultural product, of Bihar and can open new vistas for encouraging agriculture products of different other regions. Recently, government had constituted Turmeric Board also, which had long been demanded by Swadeshi Jagaran Manch, since UPA days, to address concerns of Telangana turmeric farmers. Push to make India self reliant in pulses, cotton mission and several other schemes for agriculture are worth appreciating. Raising the limit on Kisan Credit Card too is satisfying, apart from several other measures. Contrary to the rhetoric of imperative of shifting population from rural Perhaps, it was pleasing to hear from Nirmala Sitharaman in her budget speech, that the goal is to generate ample opportunities in rural areas so that migration is an option, but not necessity. With increased income opportunities in rural areas, this may be a possibility, thanks to efforts of the government.

Bridging gaps between rural and urban India

Country has been faced with a big challenge of eroding relative incomes in rural areas vis-a-vis urban areas. It was satisfying when Economic survey reported that the gap between MPCE (Monthly Per Capita Expenditure) in rural and urban populations has narrowed from 84 percent to 70 percent. This has been made possible due to increased spending on rural roads, welfare schemes like housing, clean cooking fuel, water, electricity, health care, sanitation and many more. This process needs to be further accelerated.

Budget 2025-26 does much more to push rural incomes. Apart from raising Kisan Credit Card limit, agriculture push, food processing push and many more efforts to raise rural incomes can go a long way to reduce rural urban disparities.

Health Push

Union Budget 2025-26 allocates expenditure of Rs 103280 crores on health and family welfare, Ayush and health research.

If we see over last 11 years there has been an impressive 8.3 times increase in expenditure on health and family welfare, Ayush and health research, from Rs 12482 crore in 2014-15 to Rs 103280 crores in Budget 2025-26. During this period the size of Union Budget has increased by hardly 2.8 times.

Along with push for health equipments, increasing 10,000 seats in medical colleges, and target of 75,000 additional seats in next five years, Union Budget 2025-26 allocates Rs 103280 crore for Ministry of Health, Ministry of Ayush and Healthcare Research, signaling a significant push for growth, with key measures like customs duty exemptions on life-saving drugs and the establishment of daycare cancer centres are some of the essential steps, which this budget has made.

Gig Workers

This budget has the distinction of recognizing the gig workers, working with e-commerce platforms, register them with E-Shrm Platform and granting them the benefit of health cover, apart from encouragement given to labour intensive sectors. For long Bhartiya Mazdoor Sangh and Swadeshi Jagran Manch had been demanding welfare measures for gig workers.