Union Budget 2025 Reactions | 'Inclusive growth with a focus on agriculture, MSMEs, and women,' says Rumki Majumdar, Economist at Deloitte India

'Significant strides have been made to harness the potential of India’s demographic dividend through strategic investments in skilling and education,' Majumdar said.

Finance Minister Nirmala Sitharaman tabled the much anticipated Union Budget for FY 2025-26 on February 1, which also marked a record 8th Budget presentation for the 65-year-old. In a major relief to the middle class, Sitharaman announced that there would not be any tax liability on income upto Rs 12 lakh for salaried persons under the new tax regime and raised the basic exemption from Rs 2.5 lakh to Rs 4 lakh.

Speaking about MSMEs in relation to this year's Budget, Rumki Majumdar, an Economist at Deloitte India, said, "Inflation has been a persistent problem, and the government has recognized the pressing need to address food inflation, which has been a significant contributor to rising overall inflation. Among the key drivers of this inflation are pulses and vegetables, which have seen consistent price increases in recent times."

"Prices of pulses have been a concern and targeted initiatives such as the National Mission on Pulses is a crucial step aimed at boosting the production of pulses, ensuring better supply, and stabilizing prices. Additionally, a comprehensive program for the production of vegetables and fruits has been put in place, focusing on improving yields, enhancing supply chains, and reducing price volatility."

"The National Mission for High-Yielding Seeds is a continued effort from past budget and will go a long way in improving agricultural productivity and resilience."

"Focus on employment was expected, and the announcements are all about ensuring a broad-based and inclusive growth with a focus on agriculture, MSMEs, and women. Footwear; leather; toys (Made in India), Food processing will push this sector to create employment. Providing security to gig workers is also a great measure to give recognition and ensuring a better earnings for this segment," she added.

Expressing her opinion about FDIs, Majumdar said, "Significant strides have been made to harness the potential of India’s demographic dividend through strategic investments in skilling and education. The announcements to launch 5 National Centres of Excellence for skilling, establishment of 50,000 Atal Tinkering Labs in schools, and launching the Centre of Excellence in AI for education are measures to strengthen India’s growing position in innovation."

"Together, these measures reflect a holistic approach to transforming India’s education system, ensuring that students are not only prepared for the future but are also capable of driving innovation and economic growth," she added.

While speaking about skilling, "India needs investment and one of the factors to help bring investment is ease of doing business. The economic survey tabled yesterday did highlight the importance of deregulation in a phased-wise manner, and the budget did acknowledge the same today. Govt will develop modern, people friendly, trust-based regulatory framework, Jan Vishwas 2.0 bill to decriminalise over 100 provisions in existing laws. Investment friendly index of states to be launched in 2025."

"Insurance FDI hiked was also 74 per cent to 100 per cent, which will also ensure more resources for investment in the insurance sector. This sector plays an important role in deepening financial inclusion, expanding coverage, and enhancing risk protection for individuals and businesses."

"The government revised FY25 capex at Rs 10.18 lakh crore, down from 11.11 lakh crore. This year, the FM is pushing the states to take the onus of building infrastructure. Union Finance Minister Nirmala Sitharaman announced an outlay of ₹1.5 lakh crore for 50-year interest free loans to states for capex and infrastructure. Again, there has been an emphasis on partnership with the private sector. Each infrastructure-related ministry is to come up with a 3-year plan to be implemented in PPP mode," she further added.

Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.