New Delhi, Feb 1 (IANS): The Union Budget 2025-26 provides a strong and convincing template for boosting growth and generating jobs, the twin imperatives for our economy today, with targeted interventions towards facilitating inclusive development, top industry chambers said on Saturday.
CII President Sanjiv Puri said that the policy choices made to facilitate powerful engines such as agriculture, MSME, investment and exports by way of reforms in six domains, in collaboration with states, is welcome and has been the CII’s long-standing advocacy.
"Navigating the complex economic milieu, the Budget outlines a comprehensive reform blueprint to build an India, which is prosperous, inclusive, equitable, climate-conscious, innovation-friendly and future-ready, bringing it closer to the ambition of Viksit Bharat dream," Puri maintained.
The momentous announcement on personal income tax such that there is no tax liability on income of up to Rs 12 lakh, from the earlier Rs 7 lakh, would provide a much-needed boost to consumption demand due to extra cash in the hands of the consumer.
Similarly, the boost to public capex would infuse growth momentum in the economy through its spillover effect. Some of the measures such as the launch of a second monetisation plan, and encouraging PPP and state investment in infrastructure are commendable.
The launch of the Rs 1 lakh crore urban challenge fund helps build urban infrastructure, promote demand, and employment, and crowd in private investment, said CII.
"The ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ for 100 Aspirational Agri districts targeted low productivity, moderate crop intensity and below-average credit parameters is welcome," said Puri.
Overall, the focus of the tax proposals has been broadly towards rationalisation and simplification, while reducing compliance burden and litigation, reiterating the government’s focus on "Trust First, Scrutiny Later".
According to Assocham, FM Sitharaman has lived up to wider expectations by giving significant relief to individual taxpayers, and maintaining the fiscal deficit of 4.4 per cent of GDP.
Assocham President Sanjay Nayar said that the Finance Minister has placed her confidence in the middle class for leading consumption-led growth.
"At the same time, there is a clear focus on unleashing the potential of the MSMEs, startups and exports," he mentioned.
''Priorities to agriculture, rural demand, agro and food processing, warehousing and marine products would infuse a greater vibrancy in the country's rural landscape,'' he added.
As was indicated by Prime Minister Narendra Modi, the government has foregone a revenue of Rs 1 lakh crore, on account of direct tax exemptions and reliefs, mainly to the middle class.
This is quite a bold approach and should pay off to the economic growth, said the apex industry chamber.
According to Nasscom, the budget reinforces India's commitment to a technology-driven, innovation-led economy, setting the stage for global leadership in digital transformation and DeepTech.
"The government’s strategic focus on AI, startup ecosystem growth, research, and skilling underscore its vision for a future-ready India," it said in a statement.
The Budget builds on India’s technology-first growth strategy and sets the stage for a future-ready, innovation-led economy.