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FICCI Welcomes Union Budget 2025-26, Calls It Balanced And Forward-Looking

New Delhi: The Federation of Indian Chambers of Commerce and Industry (FICCI) has praised the Union Budget 2025-26, highlighting its effectiveness in addressing immediate economic challenges while maintaining a long-term vision for Viksit Bharat (Developed India).

FICCI President Harsha Vardhan Agarwal commended the government’s “balanced approach”, stating that the Budget provides a comprehensive, inclusive, and forward-looking roadmap for economic growth.

“Through the Budget, the government has made a strong effort to address the immediate challenges being faced by the economy, particularly on the consumption front, while keeping an eye on the long-term target of pursuing the vision of ‘Viksit Bharat’. FICCI would like to compliment the Finance Minister for a comprehensive, inclusive, and forward-looking budget that encompasses a heavy dose of reforms, fiscal stimulus, and a clear focus on the farm sector, MSMEs, youth, and women of the country,” he said in a release.

Boost for Consumption and Investment

Presented amid concerns over slowing economic growth, the Union Budget 2025-26 incorporates strategic measures to boost both consumption and investment demand.

  • Income Tax Revisions: The revised personal income tax structure is expected to enhance disposable income and stimulate consumption.
  • Capital Expenditure: While the increase in capital spending appears modest compared to previous years, it remains a positive indicator for economic growth.

Agriculture and Rural Development

The Budget emphasizes agricultural development, particularly through targeted programs for 100 districts with low productivity and below-average credit availability.

  • National Mission on High-Yielding Seeds: Aimed at mitigating climate change impacts on farming.
  • Six-Year Pulses Yield Mission: Expected to control inflation and ensure food security.

FICCI noted that these initiatives align with its pre-budget recommendations for an agricultural yield mission in low-productivity districts.

Support for MSMEs and Employment Growth

Recognizing MSMEs as the backbone of the economy, the government has introduced key measures:

  • Revised MSME classification criteria to enable broader access to benefits.
  • Doubling of credit limits with guarantee cover, promoting growth in this vital sector.
  • Focus on labour-intensive industries like footwear, leather, food processing, and toys, particularly in Tier 2 and Tier 3 cities, to boost employment.

Maritime and Aviation Development

The Budget also prioritizes transportation and connectivity, introducing:

  • Maritime Development Fund: Designed to enhance India’s marine economy, especially in coastal states.
  • Expansion of the UDAN scheme: 120 new destinations to be connected, stimulating regional economic growth.

Strengthening India’s Global Trade Competitiveness

To support the Make in India for the World initiative, the government has launched:

  • Bharat Trade Net: A new digital public infrastructure to streamline trade documentation and financing, reducing costs and enhancing efficiency.

FICCI believes this will boost India’s global trade competitiveness by simplifying exports and increasing transparency.

Investment in Skilling and Education

The Budget makes significant provisions to improve India’s skilling ecosystem, including:

  • Increased capacity in IITs and medical education seats.
  • 50,000 new Atal Tinkering Labs to promote innovation.
  • A Centre of Excellence for AI education, equipping youth with future-ready skills.

Ease of Doing Business and Governance Reforms

The Budget also introduces regulatory and governance reforms, emphasizing ‘Minimum Government, Maximum Governance’ through:

  • Revamped Central KYC registry for simplified compliance.
  • New Income Tax Bill and Jan Vishwas Bill 2.0 to improve the business environment.
  • Reduction in customs tariff rates to facilitate trade and investment.

FICCI hailed these measures as critical steps towards ensuring India’s economic resilience and long-term prosperity

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