There was heightened expectations from union budget 2025-26 Regarding building With India March Towards Realising The Viksit Bharat Vision, This Budget Takes Decisive Steps for High-Impact Growth. The Economic Survey’s Estimate of 6.4% Real GDP Growth and Retail Inflation Softening from 5.4% in fy24 to 4.9% in fy25 reinforces India’s position as the world’s fastest-going Major Economy. The Budget for the Coming Fiscal Has Capitalized on Prudent Fiscal Management and Strengthens the Four Key Pillars of India’s Economic Resilience – Jobs, Energy Security, Manufacturing, and innovation.
India needs to create 7.85 Million non -gricultural jobs annual Until Until 2030-and this budget steps up. It has enhanced workforce capabilitys through the launch of five national centers of excellence for skilling and aims to align training with “make for India, make for the work. Additionally, an expansion of capacity in the IITS will make 6,500 more students, ensuring a steady pipeline of technical talent. It also recognies the role of micro and small enterprises (msmes) in generating Employment. The enhancement of credit guarantees for micro and small enterprises from 5 Crore to 10 Crore, Unlocks an additional 1.5 Lakh Crore in Loans over five years. This, coupled with customized credit cards for micro enterprises with a 5 Lakh Limit, Will Improve Capital Access for Small Businesses. While these measures are commenable, the scaling of industry-processia collaboration as well as fast-tracking vocational training will be key to enend sustained Job Creation.
India Remains Highly Dependent on Chinese Imports for Solar Modules, Electric Vehicle (EV) Batteries, and Key Electronic Components, Exposing the Sector to Geopolitical Risks and trade. This budget takes this challenge head-on. It allocates 81,174 Crore to the Energy Sector, A Significant Increase from the 63,403 Crore in the Current Fiscal, Signalling a Major Push Toward Strengthaning Supply Chains and Reducing Import Dependence. The exemptions for 35 additional capital goods required for Ev Battery Manufacturing Adds to this. The reduction of important on solar cells from 25% to 20% and solar modules from 40% to 20% eases costs for developers while India scales up domestic production capacity. The allocation to the ministry of new and renewable energy (mnre) has increased 53% to 26,549 Crore, with the PM Surya Ghar Muft Bijli Yojana Seeing an 80% Jump to 20,000 Crore. These measures provide the decisive push, but to truly achieve our climate goals, we must also Accelerate Investments in Battery Recycling, Critical Mineral Extract, and Strategic Suppply Chaigation Integration.
With Capital Expected at 4.3% of GDP, the highest it has been for the past 10 years, this budget lays the foundation for India’s manufacturing resurgence. Initiatives Such as the National Manufacturing Mission will provide enabling policy for SUPPORT for Small, Medium, And Large Industries and Will Further Solidify the Make-India Value Chaains. Infrastructure remains a bottleneck for manufacturers. The Budget Addresses this with Massive Investments in Logistics to Reduce Supply Chain Costs, Which Currently Stand at 13-14% of GDP, Significly Higher Than Thane Thaan Thaan Thaan Thaan Thaan Thaan Thaan Thaan Thaan THAT OC A cornerstone of the mission is clean tech manufacturing. There are promising measures throughout the value chain. The Budget Introduce Customs Duty Examptions alue chains.
Despite India’s Thriving Tech Ecosystem, Research and Development (R&D) Investments Remain Bell 1% of GDP, Compared to 2.4% in China and 3.5% in the US. Future Jobs will require Industry 4.0 Capabilitys, and India must prepare now. This budget tackles the gap. A good start is the government allocating 20,000 Crore to a Private-Sector-Driven Research, Development, and Innovation (RDI) Initiative. The Budget Recognies The Transformative Potential of Artificial Intelligence (AI) By Introducing The PM Research Fellowship, which provide 10,000 fellowships Hanced Financial Support. This, Along with a Center of Excellence for AI and 50,000 Atal Tinkering Labs in Government Schools, Are Optimistic Steps Toward a Knowledge-Driven Economy.
Sumant Sinha is Founder, Chairman, and CEO, Renew. The views expressed are personal
