Union Budget focuses on economic growth and opportunities for all

The 2025 Union Budget, with its focus on rural growth, women empowerment, and strengthening the Micro, Small, and Medium Enterprise (MSME) ecosystem, is a step towards a more radiant and inclusive future of India.

Supporting MSMEs

The MSMEs are crucial for economic growth, especially in rural regions where they play a central role in job creation and community development. The Budget introduces expanded credit guarantees and customised financial products to support the growth of the MSMEs, particularly those operating in rural areas. These measures will ensure that local businesses can thrive, paving the way for long-term sustainability and increasing employment opportunities.

Another exciting development is the creation of the Grameen Credit Score framework. This is designed to meet the credit needs of Self-Help Group (SHG) members and rural populations, with a particular focus on empowering women. By ensuring that credit reaches those who need it the most, the initiative will help create a more inclusive financial ecosystem, driving economic development at the grassroots level.

Rural development

This Budget is founded on a strong recognition of the importance of India's rural areas to the nation's success. Achieving a $7 trillion economy is not possible without inclusive growth that reaches every corner of the country. Over the past decade, India’s startup ecosystem has flourished, and digital innovations have helped bridge the gap between urban and rural areas.

For women, first-time entrepreneurs, and marginalised communities, the Budget promises easier access to credit, opening new doors for entrepreneurship, and economic participation. One of the key measures is the provision of loans up to ₹2 crore for women, Scheduled Castes, and Scheduled Tribes, and first-time entrepreneurs. This not only boosts confidence but also empowers rural enterprises, fostering economic stability, and local growth.

Simplifying processes

In a bid to make it easier for businesses — especially those in rural areas — to operate smoothly, the Budget introduced a revamped Know Your Customer (KYC) process. This will streamline business operations, and increase efficiency, particularly for fintech companies and the MSMEs. The changes are aimed at making it easier for these businesses to access essential services, from banking to digital payments.

The Budget enhances the PM Svanidhi scheme, which encourages street vendors to shift to digital payments. It will help vendors transition into the formal economy, improving their financial stability, and growth prospects.

A healthier, secure future

The Budget also places a strong emphasis on women’s empowerment and child nutrition. The Saksham Anganwadi and Poshan 2.0 programmes aim to improve the lives of rural women and children by focusing on food security, nutrition, and healthcare. By investing in their well-being, the government aims to create a foundation for long-term development in rural communities.

Conclusion

With a focus on agriculture, the MSMEs, women’s empowerment, and the digital economy, the Budget sets the stage for transformative growth that benefits everyone, from farmers to entrepreneurs, from rural women to street vendors. It is laying the groundwork for a Vikshit Bharat — a developed, inclusive India.

The vision outlined in this Budget is not just about economic growth; it’s about creating opportunities for all.

(Anand Kumar Bajaj is founder, CEO & MD, PayNearby.)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.

Track Budget reactions LIVE

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.