The Union Budget for 2025-26, presented today, has been hailed as a bold step towards addressing immediate economic challenges while remaining committed to the long-term vision of a 'Viksit Bharat'. Mr. Harsha Vardhan Agarwal, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), commended the government for its comprehensive and forward-looking approach, emphasizing reforms, fiscal stimulus, and a focus on key sectors including agriculture, MSMEs, and the empowerment of youth and women.

“This Budget offers a strong response to the current economic slowdown, with measures that will reignite consumption, stimulate investment, and boost economic sentiment,” said Mr. Agarwal. He highlighted the personal income tax adjustments, which are expected to leave more disposable income in the hands of citizens, driving higher consumption across sectors.

Despite the challenging economic climate, FICCI had called for targeted measures to stimulate both consumption and investment. The revisions to the personal income tax structure are a key step in fulfilling this request, ensuring more money in the pockets of the public. While the increase in capital expenditure may appear modest compared to previous years, it remains a positive indicator for long-term growth.

The agriculture sector, long a focal point for FICCI, saw significant proposals aimed at enhancing productivity and sustainability. The government has announced a targeted program covering 100 districts with low productivity, marking a significant step in addressing regional disparities. FICCI’s pre-budget suggestion for an agricultural yields mission for underperforming districts has been incorporated, bringing optimism for enhanced support in this area. Additionally, the National Mission on High Yielding Seeds and a six-year initiative to improve pulse yields are expected to mitigate the impact of climate change and address inflationary pressures in essential food categories.

For the MSME sector, the Budget brings much-needed relief through the revision of classification criteria and an increase in credit limits with guarantee coverage. Special measures for labour-intensive sectors such as footwear, leather, and food processing are set to provide a significant employment boost, particularly in tier 2 and tier 3 cities. These initiatives are poised to drive growth in the backbone of India’s economy.

On the infrastructure front, the Budget focuses on maritime development with the introduction of a Maritime Development Fund, set to enhance the marine economy and create growth opportunities for coastal states. FICCI also welcomed the expansion of the UDAN scheme, which will connect 120 new destinations, further integrating remote regions into the national economy and fostering emerging growth centres.

In a significant move to boost exports, the Budget introduces Bharat Trade Net, a digital platform designed to streamline trade documentation and financing for merchants and exporters. This initiative is part of the government’s broader strategy to leverage digital and technical capabilities to ease the process of doing business, aiming to reduce costs and increase efficiency.

Addressing the rising demand for skilled labor, the Budget outlines measures to bolster India’s education ecosystem. These include expanded capacities at IITs, increased medical education seats, the creation of 50,000 Atal Tinkering Labs, and the establishment of a Centre of Excellence for Artificial Intelligence. These steps will enhance India’s position as a global source of skilled manpower.

Further reforms outlined in the Budget include the revamped Central KYC registry, a new Income Tax Bill, and the Jan Vishwas Bill 2.0, all aimed at simplifying processes and promoting ease of doing business. Mr. Agarwal expressed confidence that these reforms will significantly enhance governance and further the government's 'Minimum Government, Maximum Governance' philosophy.

FICCI lauds the Union Budget 2025-26 for its balanced and ambitious approach, addressing immediate needs while laying a solid foundation for long-term growth and development across critical sectors.