Finance Minister Nirmala Sitharaman is presenting the first full Union Budget of Prime Minister Narendra Modi’s third term, marking her record eighth consecutive Budget presentation. This is a significant moment as she nears Morarji Desai’s record of presenting 10 Budgets.
Amidst geopolitical uncertainties and India’s economic growth rate reaching a four-year low, the Union Budget 2025 is being presented at a critical time. Additional challenges come from threats of increased tariffs on India by US President Donald Trump and the rising global economic uncertainties.
With the Economic Survey emphasizing financial inclusion, the government’s focus in this Budget is on bolstering rural households and small businesses. Analysts expect measures for easier credit access through microfinance institutions, self-help groups, and other intermediaries to stimulate economic growth.
Key Focus Areas of the 2025 Budget
The Union Budget 2025 will focus on 10 broad areas, including:
- Supporting MSMEs and promoting exports.
- Agricultural growth and rural prosperity.
- Promoting manufacturing and financial inclusion.
- Ensuring inclusive growth and development, especially for the poor, youth, farmers, and women.
Key Announcements
Agriculture and Rural Development:
A major initiative to improve agriculture will target 100 low-productivity districts. The Dhan Dhanya Krishi Yojana will focus on these districts, aiming to support 1.7 crore farmers. Other agricultural initiatives include promoting high-yielding seeds and a 5-year mission to boost cotton production.
MSMEs and Industry Support:
The SIDBI Fund of Funds will be expanded to Rs 20,000 crore to support startups and MSMEs. A customized credit card with a Rs 5 lakh limit will be issued to micro-SMEs. A new fund-of-funds of Rs 10,000 crore will also be established for startups. India Post will be transformed into a large public logistics organization, and the credit guarantee cover for MSMEs will be increased from Rs 10 crore to Rs 20 crore for startups.
Manufacturing and Innovation:
A National Manufacturing Mission will strengthen the Make in India initiative. A new urea plant in Namrup, Assam, will be established. The government will also work to create an ecosystem for solar photovoltaic (PV) cells, electrolysers, and grid-scale batteries. Additionally, 50,000 Atal Tinkering Labs will be set up to foster innovation and creativity.
This Budget signals an aggressive push to strengthen India’s industrial, agricultural, and innovation sectors while ensuring inclusive growth and sustainability.