Jaipur (Rajasthan) [India]: Former NITI Aayog CEO Amitabh Kant has lauded the Union Budget 2025, calling it one of the most progressive and forward-looking financial plans. He asserted that the budget lays the foundation for India’s long-term economic growth at 8-9% over the next three decades.
A Budget for Long-Term Growth
Kant highlighted that the budget aligns with India’s ambition of becoming a USD 30 trillion economy.
“To my mind, this is a budget for sustained growth at 8 to 9 per cent for the next three decades, enabling India to grow from a USD 4 trillion to a USD 30 trillion economy and enhancing its GDP nine times and per capita income eight times,” he stated.
Relief for the Middle Class & Economic Expansion
While emphasizing tax relief for the middle class, Kant said that its actual impact will be clearer once the Income Tax Bill is implemented.
“Tax relief is something that need not be celebrated right now. Once the Income Tax Bill comes in, we can evaluate whether it is actually beneficial for the middle class or not,” he remarked.
In the backdrop of ongoing global trade wars, Kant—who currently serves as India’s G20 Sherpa—underscored the importance of strengthening the domestic economy. He explained that increased consumption, driven by tax relief, would create a cyclical impact on production, growth, and employment.
“By providing a huge relief to the middle class, the finance minister has sent a signal for increased consumption. This, in turn, will lead to increased production, which will drive growth and job creation. This cyclical effect is exactly what India needs,” Kant explained.
Fiscal Prudence and Focus on Innovation
The budget was praised for its fiscal discipline, with the fiscal deficit projected to decline in the coming years.
“The budget is very fiscally prudent. This year, the fiscal deficit will be 4.8 per cent, but the budget aims to reduce it to 4.4 per cent next year,” Kant noted.
Additionally, he highlighted the budget’s focus on startups, innovation, and deep-tech investments.
“The budget focuses on startups, creating a ‘Fund of Funds’ for innovation worth ₹20,000 crore. It strongly supports deep-tech advancements, ensuring sustained long-term growth for the Indian economy,” Kant added.
Conclusion
The Union Budget 2025, presented by Union Finance Minister Nirmala Sitharaman, has received widespread appreciation for balancing fiscal prudence with economic expansion. Kant’s endorsement reinforces the view that the budget is designed for long-term stability, economic growth, and job creation.