India’s Budget 2025: A Blueprint for a Viksit Bharat

BY KANIKA JAKHMOLA

The Union Budget is always a big moment- some people analyze every detail, others just want to know if it means more tax saving. But beyond the usual chatter, this year's budget gives us some real insight into where the government wants to take the economy. It's like a roadmap, showing what's being prioritized, what's being cut back, and what India might look like in the coming years. Let’s break it down in a way that’s less about numbers and more about the story behind them. The budget speech this year reiterated the government’s commitment to fiscal consolidation, aimed at bringing the fiscal deficit to 4.4% of GDP. It is a delicate balance between spending enough to foster growth and keeping the deficit under control. Here, it is pretty evident that the bets are on infrastructure and manufacturing reviving the economy. The capex is at ₹11.21 lakh crore, which translates to 3.1% of GDP, with an emphasis on developing roads, railways, and digital infrastructure supportive of long-term growth. But here is the thing: while infrastructure is crucial, this budget also recognized that growth must be inclusive. That is the point where emphasis on skilling comes in. Five National Centres of Excellence for Skilling are announced that would create an effective workforce prepared for jobs in the future. It also emphasizes the need for innovation and tech-driven growth, prioritising infrastructure and skill development to lay the groundwork for a more tech-savvy economy, even though topics like artificial intelligence and renewable energy aren't specifically addressed. After all, what is the use of making world-class infrastructures if talent is not prepared to operate within and innovate out of it? India's economy has been quite resilient post-pandemic, but there are cracks in the foundation. The quarterly GDP numbers have been slowing, corporate earnings are under pressure, and household debt is rising. The budget attempts to address these challenges by striking a balance between fiscal expansion and consolidation. On the income side, there is some relief for the middle class, income tax slabs have been increased, bringing much-needed relief. The tax changes, such as raising the Section 87A tax rebate to Rs 60,000 for those with a net taxable income of up to Rs 12 lakh and making the new tax regime the default, are set to substantially lower the tax burden, with possible savings of up to Rs 114 lakh per year and advantage to lower and middle-class taxpayers. These will not only have more money directly in people's pockets but contribute to consumer expenditure, which are the drivers for economic growth in the first instance. It's clear that the government relies on longer-term investments and spurs economic growth through the budget for outlining very clearly a clear vision for what is called "Viksit Bharat" by 2047. It can be roads, a worker's training, or diplomacy; it's all about laying the foundations for an economy that is more resilient and inclusive. The devil is as usual in the details; whether or not these policies are implemented to their fullest extent will determine their success. So, what does this mean for us? Not much in the short term. But if the government stays the course, this budget could be the first step toward a more prosperous and self-reliant India. And that's something worth keeping an eye on.