The Union Budget 2025-26, presented in February 2025, outlines a strategic roadmap for economic growth, financial inclusion, and infrastructure development. With a focus on "Viksit Bharat" (Developed India), the budget prioritizes agriculture, MSMEs, investment, exports, and social welfare while maintaining fiscal discipline.

Focus Areas for Viksit Bharat in Budget 2025-26

1. Agriculture Modernization

2. MSME Growth

3. Infrastructure Expansion

4. Export Promotion

5. Social Inclusivity

6. Green Energy Transition

Key Targets for 2025-26 Budget 

• GDP Growth: 7.5%

• Fiscal Deficit: 4.5% of GDP

• Exports: $500 billion

• New Jobs: 10 million

Indian 2025-26 Budget Allocation (in ₹ lakh crore)

• GDP Growth Target: 7.5% for FY 2025-26.

• Fiscal Deficit: Maintained at 4.5% of GDP, aligning with the FRBM (Fiscal Responsibility and Budget Management) Act.

• Revenue Growth: Projected at 12% through improved tax compliance and digitization.

1. Agriculture and Rural Development

• National Mission on High-Yielding Seeds: Focus on climate-resilient seeds and improved agricultural output.
• Makhana Board in Bihar: To promote production, processing, and marketing.
• PM Dhan-Dhaanya Krishi Yojana: Targeting 100 districts to enhance agricultural growth.
• Cotton Productivity Mission: A five-year plan to improve sustainability in cotton farming.
• Enhanced Kisan Credit Card (KCC): ₹5 lakh credit for 7.7 crore farmers, fishermen, and dairy farmers.
• Aatmanirbharta in Pulses: A six-year initiative to improve production of pulses.

• Allocation: ₹2.5 lakh crore for agriculture and rural development.

• Key Initiatives:

  • Doubling farmers' income by 2030 through technology adoption and market linkages.

  • Expansion of PM-KISAN scheme to include landless laborers.

  • Promotion of organic farming and FPOs (Farmer Producer Organizations).

• Infrastructure: Development of 10,000 new agro-processing units and cold storage facilities.

2. MSME & Industrial Growth

• Credit Cards for Micro Enterprises: ₹5 lakh limit for small businesses; 10 lakh cards to be issued in the first year.
• ₹2 Crore Loans for First-time Entrepreneurs: Benefiting 5 lakh startups, especially among women and marginalized communities.
• Focus Product Scheme for Leather & Footwear: Aiming for ₹4 lakh crore turnover and 22 lakh new jobs.
• Boost for Toy Manufacturing: Cluster development and skill-building for ‘Made in India’ toys.
• Food Processing Push: National Institute of Food Technology to be set up in Bihar.

• Allocation: ₹1.2 lakh crore for MSME sector.

• Key Initiatives:

  • Extension of credit guarantee schemes for small businesses.

  • Introduction of a new "Startup India 2.0" program with tax incentives.

  • Skill development programs to enhance employability.

• Digital Push: 100% digitization of MSME operations by 2026.

3. Infrastructure & Urban Development

• ₹1 Lakh Crore Urban Challenge Fund: Focus on cities as economic hubs and sanitation.
• Asset Monetization Plan (₹10 Lakh Crore): Funds to be reinvested into infrastructure projects.
• 50-Year Interest-Free Loans to States: ₹1.5 lakh crore allocated for state-level development.
• Maritime Development Fund (₹25,000 Crore): Long-term financing for port and logistics sector.

• Allocation: ₹10 lakh crore for infrastructure projects.

• Key Projects:

  • Expansion of National Highways by 25,000 km.

  • Development of 50 new airports under the UDAN scheme.

  • Green energy corridors and smart cities.

• Public-Private Partnerships (PPP): Increased focus on attracting private investment.

4. Social Welfare & Human Resource Development

• Saksham Anganwadi & Poshan 2.0: Strengthening nutrition programs.
• 50,000 Atal Tinkering Labs: To be set up in government schools.
• Broadband for Schools & Rural Health Centers: Digital inclusion initiative.
• Expansion of IITs & AI Research Center: ₹500 crore allocated for an AI-focused educational hub.
• Medical Education Expansion: 75,000 additional seats to be created over 5 years.

• Allocation: ₹75,000 crore for green initiatives.

• Key Initiatives:

  • Promotion of renewable energy projects (solar, wind, and hydrogen).

  • Incentives for electric vehicle adoption.

  • National afforestation program to increase green cover.

5. Tax Reforms & Financial Sector

• FDI Limit in Insurance Raised to 100%: Boosting foreign investments.
• Revamped Central KYC Registry: Streamlining financial transactions.
• Jan Vishwas Bill 2.0: Decriminalization of 100+ financial provisions.
• Direct Tax Benefits for Middle Class:
  • Higher TDS Exemption for Senior Citizens: Increased from ₹50,000 to ₹1 lakh.
  • No tax on income up to ₹4 lakh; revised tax brackets to encourage voluntary compliance.
• GST & Customs Reforms: Simplification of tariffs, reduction of multiple cesses.

6. Revenue and Fiscal Health

• Projected Revenue Receipts: ₹34.2 lakh crore.
• Planned Capital Expenditure: ₹15.5 lakh crore.
• Fiscal Deficit Target: 4.4% of GDP.
• States’ Share of Tax Revenue: 22% of total revenue.

7. Green Economy and Sustainability

• Allocation: ₹75,000 crore for green initiatives.

• Key Initiatives:

  • Promotion of renewable energy projects (solar, wind, and hydrogen).

  • Incentives for electric vehicle adoption.

  • National afforestation program to increase green cover.

8. Exports and Global Trade

• Target: $1 trillion in exports by 2030.

• Key Initiatives:

  • Establishment of 20 new export hubs.

  • Incentives for labor-intensive sectors like textiles and handicrafts.

  • Strengthening trade ties with ASEAN and African nations.

This budget presents a balanced approach, focusing on economic resilience, sustainable growth, and social inclusion, ensuring India moves towards its "Viksit Bharat" vision.

The Union Budget 2025-26 lays a strong foundation for India's journey toward becoming a developed nation by 2047. By prioritizing key sectors, maintaining fiscal discipline, and promoting inclusivity, the budget aims to create a resilient and sustainable economy.