Kumar Mangalam Birla, Chairperson, Aditya Birla Group, says the Budget also focuses on power sector revitalisation, particularly in electricity distribution and intra-State transmission.
| Photo Credit: The Hindu

Finance Ministers face a perennial balancing act when crafting Budgets. They must articulate the government’s broader policy vision while maintaining fiscal discipline — a task that is as complex as it is consequential.

Nirmala Sitharaman’s latest Budget achieves this with precision. It lays out a clear road map for Viksit Bharat while remaining steadfast in its commitment to fiscal consolidation. At its core is a renewed emphasis on consumption with a ₹1 lakh crore boost. Higher discretionary income will flow into sectors like housing, automobiles, consumer goods, and travel, providing a much-needed demand stimulus.

The government has also maintained its consistent focus on infrastructure. A central pillar of this strategy is the expansion of the Public-Private Partnership (PPP) model. The Finance Minister has directed all infrastructure-related Ministries to identify three-year project pipelines under the PPP framework, with States encouraged to participate. To accelerate this transition, the government has earmarked ₹1.5 lakh crore in 50-year, interest-free loans to States for capital expenditure, incentivising them to align with national infrastructure priorities.

Asset monetisation remains a key funding mechanism. The government has announced a Second Asset Monetisation Plan (2025-30), targeting ₹10 lakh crore, significantly larger than the ₹6 lakh crore goal of the first plan introduced in 2021-22. This initiative underscores the administration’s strategy of recycling capital from existing public assets to finance new infrastructure development.

The Budget also focuses on power sector revitalisation, particularly in electricity distribution and intra-State transmission. States that implement crucial discom reforms will be permitted additional borrowing of up to 0.5% of their Gross State Domestic Product (GSDP), reinforcing fiscal incentives to drive much-needed structural changes.

A notable shift is the government’s mission-mode approach to nuclear energy. With an ambitious 100 GW nuclear power target by 2047, the Budget proposes amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, opening the sector to broader private participation. It also commits ₹20,000 crore for research and development of Small Modular Reactors (SMRs), underscoring the importance of indigenous innovation in India’s energy transition.

Aviation also gets due attention. The modified UDAN scheme aims to add 120 new destinations, targeting 4 crore additional passengers over the next decade. Meanwhile, private sector access to PM Gati Shakti portal data is expected to enhance infrastructure planning, further integrating public investment with market-driven efficiency.

Ultimately, India’s ambition to become a developed nation hinges on the quality of its infrastructure. This Budget makes it clear that the Modi government is committed to removing bottlenecks, unlocking capital, and accelerating development. It is a strategy rooted in pragmatism — one that prioritises long-term investment over short-term populism and seeks to lay the groundwork for sustained, high-quality growth.

Kumar Mangalam Birla is Chairperson, Aditya Birla Group

This Budget is the first step to Viksit Bharat 2047. Economists have stated that unless the GDP grows by 7.5% continuously for the next 25 years, the dream of Viksit Bharat will remain unrealised, and India will remain in the middle-income trap. With the backdrop of slowing growth (FY 2025 growth expected at 6.4%), India remains the fastest-growing major economy but at $2500 per capita income, acceleration beyond 8% is paramount. This growth must be inclusive where the bottom 50% of citizens can get proportional benefits.

The four major pillars of the Budget – agriculture, MSMEs, investment and exports – set the tone for inclusive and accelerated growth. While the first two pillars are aimed at the lower 50% of the economic pyramid, the tone of investment and exports is also aimed at the same segment. Clearly, inclusive accelerated growth seems to be the mantra of the budget.

Consumption must be a big driver of growth for an economy that is 75% driven by domestic consumption. The Finance Minister has swung the needle by raising the threshold of income tax to ₹12 lakh from ₹7 lakh thereby increasing the disposable income of the citizen by over ₹1 lakh crore. Revenue expenditure is also up by 6.5% to ₹39.4 lakh crore. Capital expenditure, which took a dip in FY 24-25 to ₹13.2 lakh crore from PY’s ₹15 lakh crore, will see a 17% increase to ₹15.5 lakh crore. The combination of these two factors will provide tremendous impetus to middle-class consumption and employment. This is being planned in a disciplined way to keep borrowing in check such that the fiscal deficit will reduce to 4.4% in FY26 from 4.8% and hopefully keep inflation under control.

Agriculture enjoys the prime place in the Budget with a host of schemes to uplift 100 low-productivity districts, facilitate local skill development to prevent migration and create local employment. Specific focus has been on the development of production and consumption of pulses, millets, fruits and vegetables etc. with high-yielding seeds.

MSME was the next focus area, with 5.7 crore existing MSMEs and one crore registered MSMEs employing 7.5 crore people. Greater allocation to credit guarantee schemes, term loans, commercial cards and an Alternative Investment Fund (AIF) for start-ups should significantly stimulate growth in this segment.

Focus on inclusive growth

Investment, the third pillar rightly focused on the grassroots – Anganwadi schemes that provide national support, 50,000 new labs, broadband connectivity, and digital regional language books for all governmental schools. Additionally, the expansion of IITs, medical seats, and Svanidhi for street vendor finance is directed at inclusive capacity creation. Investments in power sector transmission, nuclear energy, shipbuilding, maritime sector, regional airport, mining sector, affordable housing and tourism are all aimed at inclusive growth.

Exports, the fourth pillar, focus on a few sectors that include MSMEs. Bharat Trade Net for supporting export trade documentation, digital public infrastructure, supply chain integration, and National Framework for GCC [Global Capability Centres] in Tier 2 cities are all aimed at inclusive growth.

The decision to allow 100% FDI in the insurance sector gives a much-needed stimulus for this under-penetrated sector of our economy. Grameen Credit Score and revamped CKYC are steps in the right direction for inclusive growth.

In closing, this Budget demonstrates the first step of the keen intent of the Modi government that Viksit Bharat is not just a slogan, and the government is changing gears towards an accelerated growth phase that aims to include every Indian.

(The writer is Chairman, Hinduja Group of Companies)

Chief Economic Adviser Ananth Nageshwaran has pitched for a larger role for the private sector. File
| Photo Credit: Getty Images/iStock photo

Chief Economic Adviser Ananth Nageshwaran has pitched for a larger role for the private sector, driven by increased deregulation, in his strategy to improve domestic economic growth, as laid out in the Economic Survey.

The real GDP is expected to grow at a pace of 6.4% in 2024-25 and the annual growth rate needs to be at 8% for at least a decade to increase private investment, the CEA said, in the Survey. “Achieving this growth will require an increase in the investment rate to around 35% of GDP from the current level of around 31%. It is deemed desirable, in general, for the investment rate to rise so that a higher GDP growth rate is achieved,” he said.

Acknowledging the challenge of increasing the actual rate of investment due to “capital constraints”, the CEA said that the efficiency of investment can be boosted instead; it is here that slashing government control over businesses can come in handy. He added that easing rules and regulations could increase the economic freedom of small industries, by reducing the costs of compliance. While admitting that his pitch for deregulation is not as big as those in the liberalisation period, he said that his proposals would change rules at the State and local level that could help with “time and the resource bandwidth”, thus creating a butterfly effect on innovation, entreprenuership, and even employment generation.

Creating space for business

The Survey listed the areas in which regulations could be eased, including local body laws demarcating land use, citizen accountability, land ceiling fire safety, and floor area indices. He suggested freeing up urban spaces that are constrained by floor area regulations, to accommodate more businesses. 

“This could reduce fixed costs for small businesses which could induce increased hiring. Floor area ratio restrictions, parking regulations take away much of the land available at the ground floor level for businesses so actually manufacturing can start only from the first floor onwards in many small enterprises both in urban and rural India if they fully comply with the letter and spirit of these regulations. Naturally, that raises the fixed cost of doing business and naturally, it also disincentivizes more hiring,” Mr. Nageshwaran said in his media briefing, emphasising that deregulation can spur employment generation.

‘Relax labour laws’

He pitched for easing labour codes like unionisation laws, shop laws, and rules governing contract labour, calling for more flexible work hours administered for a longer period of time rather than weekly compliance. He also suggested a demarcation of work hours based on the order flows of firms, which he said could be negotiated between workers and employers. While pushing for deregulation, the CEA also underlined changes in the qualitative aspects of doing business. In the Survey, he cited studies that underline the importance of a healthy work place for worker productivity.

Mr. Nageshwaran recommended deregulation in agricultural marketing and pollution control and the relaxation of rules on food safety, excise, and legal metrology. He also pushed for cheaper electricity tariffs for industries. The Survey said that these sector-specific suggestions were merely illustrative, arguing that incremental liberalisation of laws would be easier once the first stage of deregulation is set in motion. “These are areas we don’t have to micromanage,” the CEA said in his briefing.

State successes

The Survey also reported that existing deregulation at the State level has already yielded results, offering examples from Andhra Pradesh, Karnataka, and Haryana, which deregulated worker laws to allow night shifts for women in information technology firms. Tamil Nadu and Haryana have changed building codes 12 times in the past year, while Punjab liberalised labour, building, and fire safety codes.

In addition to deregulation, the CEA also proposed the importance of public-private partnership-led capital expenditure in infrastructure growth. Highlighting the work done in this area, he admitted that such investment has not yet been induced in some core sectors. “The efforts of the Union Government would need to be supplemented with wholehearted acceptance of the need for public-private partnerships in infrastructure across the country,” the Survey said.

By highlighting deregulation as a major ingredient to deliver domestic growth and infrastructure investment, the Economic Survey has set the tone for the Union Budget 2025-26 to be presented on Saturday, industry experts said.

Manohar Lal Khattar. File
| Photo Credit: PTI

Union Minister Manohar Lal Khattar on Tuesday (December 10, 2024) said there has been a substantial increase in investments in the urban sector since 2014 and emphasised the Centre’s dedication to realising the vision of ‘Viksit Bharat’ by 2047.

Addressing a press conference on achievements of his Ministry, the Union Housing and Urban Affairs Minister said investments have increased 16-fold, rising from approximately ₹1,78,053 crore between 2004 and 2014 to ₹28,52,527 crore since 2014.

“Urban development schemes have been expanded and implemented with greater speed and efficiency in the past six months, asserting that the rapid pace of urbanisation has made urban development a key pillar of India’s growth strategy,” he said.

The Minister said that under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) between 2004 and 2014, projects worth ₹66,837 crore were sanctioned, but the Modi government has sanctioned projects worth ₹2.73 lakh crore under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) since 2014.

Talking about urban housing and PMAY 2.0, Mr. Khattar said a new rental housing vertical has been introduced under the second phase of the Pradhan Mantri Awas Yojana (Urban), benefiting the migrant population.

Under this scheme, new initiatives such as provisional sanctions for around 7% of the planned one crore urban houses based on the population of States signing MoUs, have been made and it will ensure timely allocation and expediting the process.

“To streamline operations, sanctions to States will be finalised based on the demand received by March 31, 2025, providing clarity on yearly house allocations,” he said, adding that 88.32 lakh houses have competed under the PMAY 2.0.

Mr. Khattar said a revamped National Urban Livelihoods Mission (NULM) will soon be launched, informed by the results of a pilot project currently under way in 25 cities.

Giving details about the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), the Union Minister said loan amounts of 13,422 crore have been disbursed under the scheme so far. Under the Swachh Bharat Mission, since June 9, 2024, the government has released more than ₹1,123 crore.

Over the past six months since June 9, two major dumpsites in Ahmedabad and Hyderabad have been completely remediated, successfully addressing approximately 2.5 lakh metric tonnes of legacy waste, Mr. Khattar added.

Kurukshetra:

Vice President Jagdeep Dhankhar on Sunday said that “Viksit Bharat” is no longer a dream, but a target that has to be achieved with the collective efforts of the citizens, keeping the message of the Bhagavad Gita in mind.

He also warned people about forces that want to hurt India.

“We have chosen the path of Viksit Bharat in 2047. Viksit Bharat is no longer a dream, but a target before us. To achieve it, we will have to keep the message of the Gita in mind…. Like Arjuna was focused on his target, we will have to have the same vision, the same determination, the same concentration,” Mr Dhankhar said.

Addressing an event here during the ongoing International Gita festival, the vice president said he has no doubt in his mind that the target of a developed India will be achieved with the collective efforts of the people of the country by 2047 or even before that.

“The role of ‘sathi’ and ‘sarathi’ is critical. India has witnessed this over the last 10 years — unprecedented economic progress, the creation of incredible institutional frameworks and an unparalleled status and respect at the global level, which was once unimaginable,” Mr Dhankhar said He added that India’s voice resonates strongly today.

The vice president emphasised the need for a “Panchamrit” model of governance inspired by the teachings of the Gita.

“I deeply reflected on what message I could deliver from this sacred place that every citizen can adopt without relying on others. I propose five fundamental principles from the Gita, which I call the Panchamrit of governance, that every citizen can implement with a strong resolve,” he said.

Elaborating on one of the five principles — constructive dialogue — Mr Dhankhar said, “The dialogue between Krishna and Arjuna teaches us that differences of opinion should not become disputes.” “Differences are natural because people think differently. Even our Constituent Assembly faced differences, but it resolved those through debate and discussion. This is a significant message and I expect our members of Parliament, members of legislative assemblies, local representatives of panchayats and municipalities, and all institutions to focus on constructive dialogue.

“The outcome of dialogue should serve social and national interests, not personal interests. No interest is bigger than national interest,” he added.

Mr Dhankhar said the second principle is personal integrity.

“Those in positions of responsibility, whether in administration, politics or economics, must lead by example. Their conduct should inspire the public as it has a profound impact on the society,” he said.

“The third principle is selfless dedication. Lord Krishna teaches ‘Yagyarthat Karmano’ — work should not be for personal gain but for the greater good. With this spirit, I appeal to everyone that building a developed India by 2047 is a grand yagna. Everyone must contribute to this collective effort to the best of their ability for the nation’s welfare,” he added.

The vice president said the fourth principle is compassion, which is the “essence of our 5,000-year-old culture”.

“The fifth principle is mutual respect…. Think about the immense diversity we have, yet it all converges into unity. This idea can be integrated into governance under the Panchamrit framework,” he said.

Mr Dhankhar talked about the rapid progress India has made in the last few years and expressed hope that the country, which is currently the world’s fifth-largest economy, would soon leave Germany and Japan behind.

He cautioned people, saying there are some forces in the country and abroad, which on the basis of money power and by using mechanisms, want to hurt India, its economy and make its institutions dysfunctional.

“Their sinister design, pernicious object is to taint, tarnish and diminish our constitutional institutions, to run down our growth trajectory. Such forces cannot be ignored now.

“Our culture says that there are occasions when such forces have to be crushed, they have to be crushed…. And we understand all this from the Gita,” he said.

“I want to give a message from this land that the nation is supreme for us. There is nothing to be measured in this love for the nation, it will be pure, it will be 100 per cent. We will always keep the nation first,” he said.

“We have to remember, we are Indians, Indianness is our identity and we are citizens of such a great country that there is no other country like this in the world, so will we allow our Mother India to be hurt?” Mr Dhankhar asked the gathering.

Referring to the Centre’s free ration scheme, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) that covers 80 crore poor people, the vice president, without naming anyone, said it is “perverse” thinking that this means the government has accepted that 80 crore people in the country are poor.

“Some people are a recipe for chaos, they can only be critics, they cannot think in a positive way. My message to them is that they should understand the essence of the Gita, the message of the Gita,” he said.

The PMGKAY was launched in April 2020 to help the poor amid the COVID-19 pandemic for three months but extended later. Under the scheme, poor families get five kg of foodgrains each month for free.

Haryana Governor Bandaru Dattatreya, Chief Minister Nayab Singh Saini and Gita Manishi Swami Gyananand were present on the occasion, among others.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Governor and Chancellor of Bharathidasan University R N Ravi presenting medals and degree certificates to graduates during the 39th convocation of the university in Tiruchi on Tuesday.
| Photo Credit: M. MOORTHY

The current geopolitical situation has made it imperative for India’s youth to work towards raising the country’s profile in the world by promoting self-reliance as part of the government’s ‘Viksit Bharat 2047’ development roadmap, said N. Kalaiselvi, Director-General, Council of Scientific and Industrial Research (CSIR) and secretary, Department of Scientific and Industrial Research (DSIR).

Ms. Kalaiselvi was speaking at the convocation of the Bharathidasan University (BDU) on Tuesday, which was presided over by Governor and Chancellor R.N. Ravi.

“’Viksit Bharat 2047’ is the need of the hour to promote the development of India. It is important that we do not depend on other countries for any of our important requirements. Students must pause for a moment of self-realisation that they are the citizens of a great country. India is in itself a complete package and therefore we are in no way inferior to anyone else in the globe,” said Ms. Kalaiselvi.

“This is time for us to prove that we can come up with innovative ideas that are not only relevant but also accepted for implementation in the global market. Science and technology alone can help India achieve the target of ‘Viksit Bharat’. If we are able to contribute to the nation, Viksit Bharat is not just a tagline, but a commitment towards development,” she said.

According to an official statement, 520 Ph.D candidates received their degrees in person on Tuesday, of whom 90 were gold medal winners.

Over 70,000 undergraduate, postgraduate and M.Phil students received their degrees in absentia. BDU Vice-Chancellor M. Selvam presented the annual report.

Union Finance Minister Nirmala Sitharaman addresses the Federation of Indian Chambers of Commerce and Industry (FICCI) National Conclave on ‘Viksit Bharat@2047’, in New Delhi on February 27, 2024.
| Photo Credit: ANI

Finance Minister Nirmala Sitharaman on February 27 exuded confidence that India Inc will align itself to the developmental goals of the nation with an objective of making the country a developed nation or ‘Viksit Bharat’ by 2047 on the 100th anniversary of independence.

Ms. Sitharaman said Prime Minister Narendra Modi has clearly indicated that the goal of Viksit Bharat is to be attained to provide the future generations a better India.

Addressing a session on ‘Viksit Bharat @ 2047: Viksit Bharat & industry’, organised by FICCI, the minister said that industry’s role is critical in achieving the goal by 2047.

“You were with India during the freedom struggle, you built industry and capacity despite the colonial pressure…So Indian industry has always kept that spirit up and against terrible odds kept moving along on national interest.

“I can’t see how they will be left out in this game of building a developed India by 2047. So it should be natural to India’s industry to align itself with India’s developmental interests, and after all industry will be the first contributor as much as the first beneficiary…,” the Minister said.

The Finance Miniter also assured the industry that reforms will continue in the third term of the Prime Minister Narendra Modi-led government.

The new government will be formed after the general elections due in April-May and the BJP is confident that Prime Minister Modi will return to power with a greater majority.

Ms. Sitharaman said that India has moved up to become the fifth largest economy and is on the way to become the third largest global economy.

Even after Covid, she emphasised that the government showed its commitment by ramping up capital expenditure. Indian industry can now surely move forward with a great speed globally as investments are coming in.

It is time for the Indian industry to also capitalise, the finance minister said.

She said that several reforms were undertaken by the government during the last 10 years and the trend will continue.

She said that the reforms to be undertaken by the next Modi government will touch on factors of production.

The Minister further said today, without digital infrastructure, no country can move at a pace at which it wants to achieve developmental goals for its own citizens.

India, she said, has shown how making investment in creating the digital infrastructure at the bottom, and scaling it up, led to creation of ‘India Stack’.

“…other than the traditional factors of production like land, labour, capital and the enterprise, I would put digital infrastructure as an important factor, without which we will not be able to scale up and bridge the gap with those who are still aspiring to move forward,” the Minister said.

Ms. Sitharaman also told the gathering that the government is focussing on areas like space and artificial intelligence (AI).

“We have emphasised that India should become a global hub for AI and we will set up centres of excellence for the same,” she said, adding, a great leap forward has been made in logistics.

Whether it is logistics, agriculture productivity or tourism, India has immense potential and government is committed to its policy.

“That is why the prime minister is confident that in the third term we will be the third largest economy. It’s because of the push which he likes to give in these areas, not just fiscal, but legislative and other measures as well,” the Minister said.

Renewable energy has better prospects for not just solar or wind, but the government is also looking at renewing its commitments to hydroelectric power, she said, and added that in green hydrogen and green ammonia, big investments are happening in India.