NEW DELHI, JAN 31—With the unveiling of the Economic Survey on Friday, all eyes are now on Finance Minister Nirmala Sitharaman as she prepares to present the Union Budget for 2025-26 in Parliament on Saturday, February 1. The upcoming budget is anticipated to further the government’s agenda of driving substantial economic growth with a strong focus on equity and inclusivity.
The Economic Survey 2024-25 highlights the government’s commitment to improving the quality of life in rural areas, viewing this as essential for equitable and sustainable national development. Financial inclusion has been placed at the forefront of this effort, ensuring easier access to credit for rural households and small businesses through microfinance institutions, self-help groups, and cooperative networks. These measures are intended to create a robust rural economy that contributes meaningfully to India’s overall growth story.
The survey underscores the importance of developing key infrastructure and social welfare systems. It points to major government programs in rural housing, sanitation, clean energy, connectivity, and social protection—all of which are aimed at strengthening livelihoods in rural and semi-urban areas. Consequently, the agriculture and rural sectors are expected to receive higher allocations in this budget, in addition to enhanced welfare initiatives for the underprivileged and marginalized communities.
Another major area of focus for the upcoming budget is infrastructure development. The Economic Survey emphasizes that large-scale investment in roads, railways, ports, and energy systems is essential to maintain India’s growth momentum and generate employment opportunities. It notes that the central government’s capital expenditure on key infrastructure sectors has grown at an average annual rate of 38.8 percent between FY20 and FY24—evidence of the administration’s strong commitment to building long-term national capacity. Experts believe that such investments not only boost economic resilience but also encourage private-sector participation, paving the way for India’s journey toward becoming a $5 trillion economy.
In addition, there is growing anticipation of tax reforms that would provide relief to the middle class—a key driver of domestic consumption. Possible measures include reducing personal income tax rates and increasing the standard deduction to leave more disposable income in citizens’ hands. Under the current system, the basic exemption limit stands at Rs 2.5 lakh for the old tax regime and Rs 3 lakh for the new one. A reduction in tax rates could help stimulate consumer demand, thereby reinforcing economic growth and employment generation.
As India awaits the Union Budget 2025-26, the Economic Survey sends a clear signal: the nation’s next phase of progress will rely on inclusive, balanced, and sustainable development. By combining fiscal prudence with targeted welfare measures and infrastructure-led growth, the government aims to strengthen India’s economic foundations while ensuring that prosperity reaches every section of society.
