The Union Budget presented by the Union Finance Minister, Nirmala Sitharaman, on the floor of Parliament is not merely an annual statement of income and expenditure. It is, in fact, a mirror reflecting the country’s economic direction, social priorities, and future possibilities. At a time when India is rapidly consolidating its identity on the global stage as an emerging economic power, while simultaneously grappling with global uncertainties, geopolitical tensions, climate challenges, and rapid technological change, this Budget assumes even greater significance. From individual citizens to traders, industrialists, farmers, workers, youth, and the middle class—everyone’s eyes are fixed on the Budget, as it offers not only a snapshot of the current year’s economic landscape but also a glimpse of the “India of the future.”
The Economic Survey presented ahead of the Budget has offered several important insights into the government’s thinking and policy vision. It emphasizes that development should not be confined merely to numerical growth, but should focus on the expansion of opportunities, inclusive progress, and long-term sustainability. The Survey acknowledges that while the Indian economy does face challenges, its potential far outweighs them. This very perspective should form the core spirit of the Budget—an audacious attempt to transform challenges into opportunities. The foremost and most crucial expectation from the Budget relates to enhancing the purchasing power of the lower-income sections. An economy attains real strength only when the person standing at its lowest rung is able to live a life of dignity and actively participate in consumption. When the incomes of the lower-income groups rise and they gain access to affordable and accessible services, the immediate impact is felt on demand. Increased demand, in turn, stimulates production, investment, and employment. Therefore, the Budget must focus on concrete measures for employment generation, along with direct cash transfers, food security, healthcare, and education. Strengthening programmes such as MGNREGA, introducing similar initiatives for the urban poor, and ensuring social security for workers in the unorganised sector can prove to be significant steps in this direction. Urban development should be another major focal point of this Budget. India is rapidly urbanising, and cities are facing mounting pressure on housing, transport, water supply, sanitation, and the environment. Continued over-reliance on a few metropolitan cities is no longer a viable option. The idea of urban decentralisation suggested by World Bank President Ajay Banga is particularly relevant in today’s context. Transforming small and medium cities into centres of economic activity and promoting industries and services there would not only reduce the burden on megacities but also help correct regional imbalances. If the Budget introduces special urban infrastructure packages for Tier-2 and Tier-3 cities—covering transport networks, digital connectivity, and skill development—it could lay the foundation for far-reaching transformation.
At the global level, rising tariffs, trade barriers, and protectionist tendencies present both challenges and opportunities for India. Ajay Banga’s observation that greater attention should be paid to trade opportunities rather than excessive concern over tariffs offers a perspective well suited to India’s current position. India possesses a vast domestic market, a young population, strong digital capabilities, and a vibrant entrepreneurial spirit. If this Budget extends meaningful support to export-oriented industries, start-ups, manufacturing, and value-added sectors, India can further strengthen its position in global supply chains. Initiatives such as “Make in India” and “Atmanirbhar Bharat” must move beyond slogans and be backed by practical policy support—through a simplified tax structure, easy access to credit, greater investment in research and innovation, and improved ease of doing business. In this context, ignoring the role of the middle class would be economically self-defeating. The middle class forms the backbone of any economy—it is both the largest consumer base and the most significant taxpayer. Ironically, this very segment often finds itself relatively neglected in Budget deliberations. Rising inflation, the high costs of education and healthcare, housing loans, and the burden of taxes have adversely affected both the savings and consumption capacity of the middle class. Rational reforms in income tax slabs, tax relief on education and healthcare, and incentives for housing in this Budget would not only provide much-needed relief to the middle class but also strengthen demand-led growth. From the perspective of industry and the business community, the foremost expectation from the Budget is a stable and predictable policy environment. Investors are wary of uncertainty. Frequent changes in tax policies, complex compliance requirements, and regulatory ambiguities hinder investment. If this Budget clearly signals a long-term tax policy framework, provides affordable credit to the MSME sector, encourages technological upgradation, and introduces special packages for green industries, it would significantly boost business confidence. The MSME sector, in particular—being the largest source of employment—must be positioned at the centre of economic revival.
The vision of India’s future cannot be limited to economic growth alone. Environmental sustainability, social justice, and human development are equally vital. In the context of climate change, the Budget must prioritise green energy, clean transportation, and sustainable agriculture. This would not only protect the environment but also create new industries and employment opportunities. Investment in education and skill development will prepare the future workforce for global competition, while increased spending on healthcare will lay the foundation for a healthy and productive society.
Ultimately, this Budget represents a test of balance—between fiscal discipline and developmental expenditure, between short-term relief and long-term reforms, and among the expectations of different sections of society. If the Budget succeeds in enhancing the purchasing power of the lower-income groups, providing relief to the middle class, accelerating urban decentralisation, and transforming global challenges into opportunities, it will emerge not merely as a financial document but as a manifesto for progress towards a “Developed India.” What the country needs today is precisely such a Budget—one that inspires hope, builds confidence, and presents a positive and courageous vision for the future. |
