Budget 2025 Views and Analysis Highlights: ‘Big boost for middle class’, FE Editors decode Union Budget 2025-26

“Focus on power transmission projects and power sector reforms creditable. So is the focus on domestic ship-building and nuclear reactors with Rs 20,000 crore investments. These could have a multiplier effect on economic activities,” explains KG Narendranath.

“Udaan Regional Connectivity scheme – A modified udaan scheme to enhance regional connectivity to 120 new destinations and carry 4 cr additional passengers in next 10 years, will be launched.” – Union FM Sitharaman.

Urban challenge fund for Rs 1 lakh crore for redevelopment of cities and water and sanitation purposes will be set up.

Nuclear Energy Mission for research and development for small module reactors at an outlay of Rs 20,000 crore will be set up

Budget 2025 continues the Government’s efforts to: a) Accelerate Growth b) Inclusive Development c) Private Sector Investments d) Uplift Household sentiments e) Enhance the spending power of India‘s rising middle-class

Through the convergence of existing schemes, the program will cover 100 districts with low productivity, moderate crop intensity & below-average credit parameters to: 1. Enhance agricultural productivity 2. Adopt crop diversification & sustainable agri-practices 3. Augment post-harvest storage 4. Improve irrigation facilities 5 . Facilitate long term & short-term credit The program will likely help 1.7 crore farmers -Union Finance Minister Nirmala Sitharaman.

” Three year pipeline for PPP projects in infrastructure. Private investments in infrastructure projects has not been picking up, forcing the government to do the heavy lifting, particularly in railways and highways. Several financing models such as institutional set-ups for finding long-term patient capital has met with only moderate success. Investors need to be assured of return of capital for investments to gather momentum,” explains KG Narendranath.

“To make India a global hub of toys. Will represent Made in India brand.

National Institute of Food Technology and Management to be set up in Bihar.

Government to set up manufacturing mission to help MSMEs. Along with initiatives for farmers. Aim is to provide a well-rounded budget, touching lives of multiple stake holders. Worth watching what is in store for middle-class.”

Urban livelihoods

Scheme for socio-economic upliftment of urban workers to be implemented

PM-Swanidhi scheme to be revamped, with enhanced loans from banks. UPI-linked credit cards with Rs 30,000 limit

Scheme for make in India

Clean tech manufacturing, solar PV cells, EV batteries

People: Angadwadi and Poshan 2.0 programme to provide support to 8 crore children

Five national centres for skilling will be set up

Expansion of capacities in IITs

Additional infra will be created in five IITs started after 2014, to facilitate education for 5000 more students

Centre of excellence for AI in education will be set up, total outlay of Rs 500 crore

10,000 additional seats will be added in medical seats in next five years.

“Manufacturing Mission again, covering small medium and large industries. The share of manufacturing in GDP has not been growing despite the 25% target set a decade ago. It remains at around 16%. Manufacturing boost requires dee-rooted structural reforms, improved logistics and bridging the trust deficit among aspiring investors,” explains KG Narendranath.

“Support schemes for labour-intensive sectors like textiles, leather, toys etc. These are export-intensive sectors where it is relatively easier for India to have global competitiveness.

These sectors have long been performing below potential in the key export markets,” explains KG Narendranath

“New fund of fund for startups will be setup with a support of Rs 10,000 crore. The move is positive for startups looking for funding support,” explains Jatin Grover.

“Another Rs 10,000 cr from Govt for Fund of Fund for start-us. With the existing AIF having moblised over Rs 91,000 crore, capital support to start-ups to get a boost,” says KG Narendranath.

“New urea plant in Assam announced. This will help curb fertiliser subsidy in the long run.

Stil, about a fifth of urea needs are met via imports, besides import of gas, the feedstock in the form of LNG.

Given that both food and fertiliser subsidy remain open-ended with no change in issue prices for long years, subsidy rationalisation is important to keep revenue expenditure in check, and find more resources for capex,” says KG Narendranath

PM Dhan Dhyan Krishi Yojana to benefit 1.7 crore farmers, says Union Finance Minister Nirmala Sitharaman.

“Budget to boost manufacturing, securing energy supplies and promoting exports.

Budget to focus on six engines – Taxation, power sector, urban development, mining and regulatory reforms.

National Mission on high yielding seeds to be launched. Positive for fertilizer and seed companies

Five years mission to boost cotton productivity to boost cotton farming.”

“Transformative reforms in six areas including taxation, regulations and agriculture, says FM. Indicates the Budget may contain key changes in the tax structure, including those aimed at spurring investment and consumption.

Economic Survey called for re-regulation to unleash the energies of economic actors, mainly the

MSMEs. It seems the Budget would take cue from this and act upon the recommendations. The extent and scope of the deregulation and other reforms will be key to their utility. Also, state governments need to act in tandem with the Centre,” says KG Narendranath.

Union Finance Minister Nirmala Sitharaman says, “In this Budget, the proposed development measures span 10 broad areas, focussing on the poor, youth, farmers and women.”

“Our economy is the fastest growing among all major economies. Our development track record for the past 10 years and structural reforms have drawn global attention. Confidence in India‘s capability and potential has only grown in this period. We see the next 5 years as a unique opportunity to realise sabka vikas, stimulating balanced growth of all regions,” says Union Finance Minister Nirmala Sitharaman.

Amid sloganeering in Parliament, Nirmala Sitharaman begins her Budget speech. She said focus of four key areas.

Nirmala Sitharaman begins her Budget speech

Chaos in Parliament ahead of Nirmala Sitharaman’s speech in Parliament.

The Union Budget is set to be presented shortly. The Budget presentation will begin at 11 AM.

Dulari Devi’s journey to becoming a celebrated Madhubani artist is truly inspiring. Hailing from a fisherman community, where painting was not traditionally practiced, she developed a deep passion for the art form while working with Karpoori Devi, an accomplished Madhubani painter. Despite facing numerous hardships—being abandoned by her husband at 16, losing a child, and working as a domestic helper for 16 years—Dulari Devi never gave up on her dreams.

Her paintings have been a powerful medium for spreading awareness about important social issues such as child marriage, AIDS, and female foeticide. Over the years, she has created more than 10,000 works of art, showcasing them in over 50 exhibitions across India. Additionally, Dulari Devi has dedicated herself to preserving the traditional art form by training over 1,000 students through organizations like the Mithila Art Institute and Seva Mithila Sansthan, ensuring that Madhubani art continues to thrive for generations to come, reports ANI.

The saree worn by Finance Minister Nirmala Sitharaman was a gift from Padma Shri awardee Dulari Devi, a self-taught Madhubani artist from Bihar. Sitharaman met Dulari Devi during a visit to the Mithila Art Institute in Madhubani for a credit outreach event, where the artist presented the saree and requested that she wear it on Budget Day.

Union Finance Minister Nirmala Sitharaman is known for making statements through her sarees on Budget Day, with each one reflecting India‘s rich textile heritage and traditional craftsmanship. This year, she chose a stunning off-white saree adorned with intricate golden work, paired with a red blouse and shawl. She carried her signature ‘bahi-khata,’ a tablet wrapped in red cloth and embossed with a golden national emblem, as she presented the Union Budget.

The Budget is expected to provide insight into the Modi government’s efforts to boost the economy, which is projected to slow down to 6.4% in the current financial year. It will also outline a roadmap for transforming India into a ‘Viksit Bharat’ (Developed India) by 2047.

President Droupadi Murmu offered Union Finance Minister Nirmala Sitharaman ‘dahi-chini’ (curd and sugar), a gesture considered auspicious, before she left for Parliament to present the Union Budget.

Finance Minister Nirmala Sitharaman met with President Droupadi Murmu before presenting her record eighth Budget in the Lok Sabha. Following established tradition, the finance minister visited the Rashtrapati Bhavan to meet the President before heading to Parliament.