Viksit Bharat 2025: How Budget Reforms Will Transform India’s Economy

The Union Budget for 2025-2026, presented in February 2025, is a visionary blueprint aimed at transforming India into a Viksit Bharat (Developed India). With a strong emphasis on reforms, inclusivity, and sustainable growth, the budget addresses critical sectors such as agriculture, infrastructure, energy, trade, research, and social welfare. Here’s a detailed analysis of the key features and initiatives:

1. Agriculture and Farmers’ Welfare

The budget places a strong focus on empowering farmers and boosting agricultural productivity through innovative schemes and missions:

• Prime Minister Dhan-Dhaanya Krishi Yojana:
  This ambitious program targets 100 agricultural districts and is expected to benefit 1.7 crore farmers. It aims to enhance crop yields, improve soil health, and promote sustainable farming practices.
• Enhanced Credit through Kisan Credit Card (KCC):
  Short-term loans up to ₹5 lakh will be facilitated for 7.7 crore farmers, fishermen, and dairy farmers. This initiative aims to ease financial burdens and support rural livelihoods.
• National Mission on High-Yielding Seeds:
  A targeted mission to develop and propagate high-yielding, pest-resistant, and climate-resilient seeds to ensure food security and farmer prosperity.
• 5-Year Cotton Productivity Mission:
  This mission focuses on improving the productivity and sustainability of cotton farming, benefiting millions of cotton farmers across the country.
• Makhana Board in Bihar:
  To boost the production, processing, and marketing of makhana (fox nuts), a Makhana Board will be established in Bihar. This will also support Farmer Producer Organizations (FPOs) and enhance value addition.

2. Infrastructure Development

The budget allocates significant resources to infrastructure development, aiming to boost economic growth and connectivity:

• Interest-Free Loans to States:
  A massive ₹1.5 lakh crore will be provided as 50-year interest-free loans to states for capital expenditure, incentivizing reforms and infrastructure projects.
• Asset Monetization Plan 2025-30:
  This plan aims to generate ₹10 lakh crore by monetizing existing assets, which will be reinvested in new infrastructure projects.
• Urban Challenge Fund:
  A ₹1 lakh crore fund will support urban development projects, including city redevelopment, water-sanitation initiatives, and creative urban planning under the theme “Cities as Growth Hubs.”
• Maritime Development Fund:
  With a corpus of ₹25,000 crore, this fund will provide long-term financing for maritime projects, with up to 49% government contribution.
• UDAN Scheme Expansion:
  The regional connectivity scheme will expand to 120 new destinations, aiming to carry 4 crore passengers over the next decade.

3. Energy and Sustainability

The budget emphasizes clean energy and sustainable development:

• Nuclear Energy Mission for Viksit Bharat:
  Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will enable private sector participation in nuclear energy projects, fostering innovation and capacity building.
• Jal Jeevan Mission Extension:
  The mission, aimed at achieving 100% water coverage, has been extended till 2028 with an enhanced outlay to ensure clean drinking water for all.
• Power Sector Reforms:
  States will be incentivized to implement distribution reforms and augment intra-state transmission infrastructure. An additional borrowing limit of 0.5% of GSDP will be allowed for states undertaking these reforms.

4. Research, Innovation, and Education

The budget prioritizes research and innovation to drive technological advancement:

• PM Research Fellowship:
  10,000 fellowships will be awarded for technological research in IITs and IISc, fostering innovation and excellence in higher education.
• Research, Development & Innovation (RDI) Initiative:
  A ₹20,000 crore allocation will support private sector-driven RDI projects, promoting cutting-edge research and technological breakthroughs.
• Gene Bank for Crops Germplasm:
  A second gene bank with 10 lakh germplasm lines will be established to ensure future food and nutritional security.
• Gyan Bharatam Mission:
  This mission focuses on documenting and conserving India’s manuscript heritage, covering over 1 crore manuscripts, and establishing a National Digital Repository for knowledge sharing.

5. Trade and Export Promotion

The budget introduces measures to boost exports and integrate India into global supply chains:

• Export Promotion Mission:
  Sectoral and ministerial targets will be set to facilitate easy access to export credit, cross-border factoring support, and assistance for MSMEs to tackle non-tariff barriers.
• BharatTradeNet (BTN):
  A unified digital platform for trade documentation and financing solutions, BTN will streamline international trade processes and enhance efficiency.
• National Framework for Global Capability Centres (GCC):
  A framework to promote GCCs in emerging tier-2 cities, fostering job creation and economic growth.

6. Tax Reforms and Ease of Compliance

The budget introduces several tax reforms to simplify compliance and promote voluntary adherence:

• Rationalization of TDS/TCS:
  Tax deduction limits for senior citizens have been doubled from ₹50,000 to ₹1 lakh, and the annual TDS limit on rent has been increased from ₹2.40 lakh to ₹6 lakh.
• Increased FDI Limit in Insurance:
  The FDI limit in the insurance sector has been raised from 74% to 100%, attracting more foreign investment.
• Simplified Compliance for Charitable Trusts:
  The registration period for small charitable trusts has been extended from 5 years to 10 years, reducing compliance burdens.
• Tax Benefits for Self-Occupied Properties:
  Taxpayers can now claim the annual value of two self-occupied properties (previously one) without any conditions.

7. Social Welfare and Environmental Initiatives

The budget includes measures to improve quality of life and environmental sustainability:

• Greenfield Airports and Infrastructure Projects:
  Financial support for greenfield airports and the Western Koshi Canal ERM Project will enhance connectivity and water management.
• Housing for All:
  A ₹15,000 crore allocation will expedite the completion of 1 lakh dwelling units through blended finance.

Conclusion

The Union Budget 2025-2026 is a transformative roadmap designed to propel India towards becoming a Viksit Bharat. By focusing on agriculture, infrastructure, energy, research, trade, and social welfare, the budget aims to create a sustainable, inclusive, and prosperous future for all citizens. With its emphasis on reforms and innovation, this budget sets the stage for India’s emergence as a global economic powerhouse.