Finance Minister Nirmala Sitharaman presented her historic eighth Union Budget on February 1, 2025. She unveiled an ambitious blueprint for India’s development as ‘Viksit Bharat’ by 2047. This budget focuses on accelerating the economy and ensuring long-term sustainability. Key reforms in income tax, fiscal discipline, infrastructure, energy, and employment have been introduced in this budget, which will lay the foundation for inclusive growth. This blog discusses the top five out of a myriad of game-changing moves of Union Budget 2025-26 that are winning hearts.
Some Game-Changing Moves of Union Budget 2025-26
Major Relief for the Middle Class with Higher Disposable Income
The most significant change in Budget 2025 was the rare rise in the threshold of personal income tax exemption from ₹7 lakh to ₹12 lakh. This reform returned nearly ₹1 lakh crore to the economy, boosting consumer spending and driving economic expansion. By relieving some long-standing tax burdens from the middle class, the government has provided much-needed relief, which has further stimulated consumption and savings.
2. Consolidating Fiscal Discipline for Sustainable Growth
India’s commitment to reducing the fiscal deficit to 4.4% of GDP by FY26 sends a very strong message of economic prudence to global investors. This approach is disciplined enough to assure financial stability while keeping growth momentum. With increasing global economic uncertainties, India’s sound fiscal management increases investor confidence and makes the country a preferred destination for foreign capital and infrastructure expansion.
3. Revitalizing Labour-Intensive Sectors to Generate Employment
Strategic labour-intensive industries: Key focus of the budget has been on labor-intensive industries such as textiles, leather, food processing, and tourism. With regard to tourism infrastructure, simplification of travel formalities including visa-free travel to specific groups of tourists, there will be all-round employment in the country. The development of India’s top 50 tourist destinations will generate job opportunities, thereby enriching cultural and economic value.
4. PPP to Infuse Growth in Infrastructure
The budget revives public-private partnerships (PPPs) in infrastructure with a ₹10 lakh crore Asset Monetization Plan, where large projects will receive new investments. This is a strategic step towards making it more efficient, reducing project delays, and turning India into a global infrastructure superpower.
5. A Game-Changer in India’s Energy Sector: Nuclear Power Expansion
As such, with an aim to add 100 GW of nuclear power by 2047 and the allocation of ₹20,000 crore for small modular reactor research, the budget further solidifies India’s resolve towards energy sustainability. Changes to major nuclear policy will facilitate greater private sector engagement, spurring innovation and investment in clean energy solutions.
The Path to a Developed India by 2047
These landmark initiatives place India on a trajectory of inclusive, sustainable, and robust growth. The critical factor, however, would now be the effective execution of these policies through the government. With a strategic blend of tax reforms, fiscal prudence, employment generation, and energy transformation, Budget 2025 lays strong foundations for India in pursuit of its ambitious target to attain developed status by 2047.
Also, see: “Force multiplier” and “people’s budget”: PM Modi names Budget 2025