Budget Powers Viksit Bharat with Jobs, Energy, And Innovation Focus
There were heightened expectations from Union Budget 2025-26 regarding building on the momentum of in 2015’s 9 budget plan concerns – and it has actually delivered. With India marching towards realising the Viksit Bharat vision, this budget takes decisive steps for high-impact growth. The Economic Survey’s quote of 6.4% real GDP growth and retail inflation softening from 5.4% in FY24 to 4.9% in FY25 enhances India’s position as the world’s fastest-growing major economy. The spending plan for the coming financial has capitalised on prudent fiscal management and strengthens the four crucial pillars of India’s financial resilience – tasks, energy security, manufacturing, and development.
India requires to create 7.85 million non-agricultural jobs each year till 2030 – and this budget steps up. It has improved labor force abilities through the launch of five National Centres of Excellence for Skilling and intends to align training with “Produce India, Produce the World” producing needs. Additionally, a growth of capacity in the IITs will accommodate 6,500 more students, making sure a constant pipeline of technical talent. It also recognises the function of micro and small (MSMEs) in creating work. 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 5 years. This, coupled with customised charge card for micro enterprises with a 5 lakh limitation, will enhance capital access for small organizations. While these procedures are good, the scaling of industry-academia collaboration as well as fast-tracking vocational training will be key to ensuring sustained job production.
India stays highly dependent on Chinese imports for solar modules, electric car (EV) batteries, and essential electronic components, exposing the sector to geopolitical dangers and trade barriers. This budget takes this challenge head-on. It designates 81,174 crore to the energy sector, a significant boost from the 63,403 crore in the current financial, signalling a significant push toward reinforcing supply chains and lowering import dependence. The exemptions for 35 additional capital products needed for EV battery manufacturing contributes to this. The reduction of import duty on solar cells from 25% to 20% and solar modules from 40% to 20% reduces expenses for designers while India scales up domestic production capability. The allotment to the ministry of new and eco-friendly energy (MNRE) has actually increased 53% to 26,549 crore, with the PM Surya Ghar Muft Bijli Yojana seeing an 80% jump to 20,000 crore. These procedures offer the definitive push, however to genuinely attain our environment goals, we must also accelerate investments in battery recycling, crucial mineral extraction, and strategic supply chain combination.
With capital expenditure estimated at 4.3% of GDP, the highest it has been for the past 10 years, this budget lays the foundation for India’s production renewal. Initiatives such as the National Manufacturing Mission will offer enabling policy assistance for little, medium, and big industries and will further strengthen the Make-in-India vision by enhancing domestic value chains. Infrastructure remains a traffic jam for producers. The budget plan addresses this with massive investments in logistics to decrease supply chain expenses, which currently stand at 13-14% of GDP, significantly greater than that of the majority of the established countries (~ 8%). A cornerstone of the Mission is clean tech production. There are guaranteeing measures throughout the worth chain. The spending plan presents custom-mades duty exemptions on lithium-ion battery scrap, cobalt, and 12 other important minerals, securing the supply of necessary materials and strengthening India’s position in international clean-tech value chains.
Despite India’s prospering tech community, research and development (R&D) investments remain listed below 1% of GDP, compared to 2.4% in China and 3.5% in the US. Future tasks will need Industry 4.0 capabilities, and India must prepare now. This budget plan takes on the gap. An excellent start is the federal government designating 20,000 crore to a private-sector-driven Research, Development, and Innovation (RDI) initiative. The spending plan identifies the transformative capacity of expert system (AI) by introducing the PM Research Fellowship, which will supply 10,000 fellowships for technological research study in IITs and job IISc with improved financial backing. This, in addition to a Centre of Excellence for AI and 50,000 Atal Tinkering Labs in government schools, are positive steps toward a knowledge-driven economy.