Manish Agarwal, Vice President
Assocham UPUk
Ladhu udyog Bharati
Lucknow – The Union Budget 2025 focuses on accelerating inclusive development and enhancing the purchasing power of the middle class. With a clear emphasis on economic growth, the government has outlined several initiatives to address the needs of various sectors and foster a more robust economy.
One of the key highlights is the government’s focus on Micro, Small, and Medium Enterprises (MSMEs), which are considered the backbone of the manufacturing sector. The government is placing a strong emphasis on prioritizing the needs and potential of MSMEs, with a strategic decision to reclassify them, which is expected to be a game-changer for this vital sector. This reclassification will allow MSMEs to access better opportunities and resources, ultimately contributing to economic growth and employment generation.
The budget also lays out plans for boosting the education and healthcare sectors. The government has proposed reforms aimed at driving growth in the textile industry, along with basic customs amendments to support this development. The intention is to further stimulate key sectors of the economy, thus enhancing overall economic productivity.
A notable announcement in the budget was the introduction of health insurance coverage for workers on online platforms, which has been widely praised as a progressive move for the gig economy. Furthermore, the government’s proposal to implement a zero-tax system for income up to ₹12 lakhs under the new tax regime has been welcomed, especially as it aims to provide relief to the middle class and boost domestic spending.
The government has also been commended for its focus on export, tourism, and the healthcare sector, recognizing these as key drivers for economic development. By strengthening these sectors, the central government hopes to position India as a global leader in trade and tourism.
In a significant step towards supporting startups, the government has increased the credit guarantee cover for startups from ₹10 crore to ₹20 crore. Additionally, reducing the guarantee fee to 1% is expected to ease challenges for young entrepreneurs, making it easier for them to access funding and grow their businesses.
The budget has also made provisions for enhancing the tourism sector, with a focus on skill development, visa facilities, and destination development. The government’s efforts to strengthen these aspects will make India an even more attractive destination for both global tourists and investors.
The easy export loans, cross-border support, and focused assistance for MSMEs are seen as crucial steps in fortifying India’s position in the global trade landscape. With these moves, the government is paving the way for India’s economic ascent and a more inclusive and robust economic future.
