Inside India's Union Budget: Bold Projections and Strategic Growth Plans

Finance Minister Nirmala Sitharaman presents her 8th consecutive Union Budget, outlining crucial fiscal policies and strategies for sustained economic growth. The Economic Survey forecasts growth rates between 6.3% and 6.8% for 2025-26, highlighting robust fundamentals and strategic plans for industrial enhancement. Key challenges include food inflation and international price volatility.

Defence Minister Rajnath Singh arrived at Parliament on Saturday, anticipating the Union Budget presentation by Finance Minister Nirmala Sitharaman. Addressing journalists, Singh remarked confidently, 'The Budget will cater to every segment of society.'

Today marks Sitharaman's record-setting 8th consecutive budget presentation in the Lok Sabha. Her speech is expected to focus on fiscal policies, revenue strategies, taxation reforms, and key economic announcements. Prior to the session, she, along with Union Minister of State for Finance Pankaj Chaudhary, consulted with President Droupadi Murmu at Rashtrapati Bhavan.

In a traditional gesture for good luck, President Murmu offered 'dahi-chini' to Sitharaman. The meeting involved discussions on the budget's framework. The Economic Survey, unveiled on Friday, predicts India's economy to grow between 6.3% and 6.8% in the 2025-26 fiscal year, emphasizing strong economic fundamentals supported by fiscal consolidation and robust private consumption.

The government, as noted in the survey, aims to bolster long-term industrial growth through innovation-focused R&D, MSMEs, and capital goods. Efforts are concentrated on enhancing productivity and global competitiveness. The domestic economic foundation remains strong with a stable external account and consistent private consumption, supporting growth expectations of 6.3% to 6.8% in FY26.

The survey anticipates easing of food inflation in Q4 FY25 due to seasonal vegetable price drops and Kharif harvest arrival. Favorable Rabi production could stabilize food prices in early FY26, though inflation risks from adverse weather and rising global agricultural prices persist. India's robust foreign exchange reserves cover 90% of external debt, offering over ten months of import security, bolstered by stable capital flows.

Growth in formal employment is notable, with EPFO subscriptions more than doubling from FY19 to FY24. The Parliament's budget session, starting with President Murmu's joint address, continues till February 13, resuming March 10 after recess, concluding on April 4.

(With inputs from agencies.)