Sitharaman to Present Eighth Consecutive Union Budget Amidst Promising Economic Outlook

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 in Lok Sabha. The Economic Survey forecasts India's economy to grow between 6.3% and 6.8% in 2025-26. It emphasizes robust economic fundamentals and highlights measures to boost industrial growth, productivity, and global competitiveness.

Union Finance Minister Nirmala Sitharaman arrived at the iconic North Block, the seat of the Ministry of Finance, on Saturday to unveil the Union Budget 2025. At 11 am, Sitharaman will present her unprecedented eighth consecutive budget in the Lok Sabha, providing an overview of the government's fiscal track and policy direction.

On the economic front, the Economic Survey, released a day before the budget presentation, has projected a growth rate of 6.3% to 6.8% for India's economy in the fiscal year 2025-26. The survey underscores the nation's steady economic fundamentals, bolstered by a resilient external account, fiscal prudence, and sturdy private consumption trends.

The survey further delineates government's strategy to bolster long-term industrial prosperity by enhancing research and development, bolstering micro, small, and medium enterprises, and propelling advancements in capital goods. These initiatives are poised to elevate productivity, spurring innovation, and fostering global competitiveness.

To sustain economic equilibrium, the survey foresees an easing of food inflation by the final quarter of FY25, attributed to seasonal declines in vegetable prices and the Kharif harvest influx, while a robust Rabi yield should help stabilize food costs in the early FY26. However, potential weather adversities and escalating global agricultural prices remain inflationary risks.

In terms of foreign reserves, India's forex reserve remains a strong pillar, covering 90% of external debt, translating into an import cover exceeding ten months. Reserves fluctuated from USD 616.7 billion in January 2024 to a peak of USD 704.9 billion in September 2024 before slightly moderating. Stable capital flows continue to reinforce India's external economic resilience, alongside notable growth in formal employment, with EPFO subscriptions surging to 131 lakh in FY24 from 61 lakh in FY19.