UNION BUDGET 2025: Focusing Garib, Yuva, Annadata and Nari Shakti (GYAN)

01 Feb 2025, 18:17 by Northlines · Northlines

Dr. Parveen Kumar

In the backdrop of resilience and growth potential shown by the country, the Union Budget presented by Ms. Nirmala Sitharaman on the first day of second month of this year unveiled the government plans to guide the country towards long term sustainable growth. Prime Minister Sh. Narendra Modi in a cabinet meeting had highlighted the focus of government on fulfilling the aspirations of the poor, farmers, women, and youth, representing the core values of GYAN (Garib, Yuva, Annadata, and Nari Shakti). Indian growth despite so many pressures and pulls over the past few years has also been acknowledged by various international bodies. A United Nations report states that South Asia’s economic growth will remain strong with India playing a key role in this progress. The report praises India’s strong performance as a major contributor to the region’s economic growth .

The Union Budget 2025 was Finance Minister’s record eighth budget and the first full budget of present government which also is being led by Sh. Narendra Modi for the third consecutive time. As usual, the Economic Survey; a pre-budget document that analyzes country’s economic performance over the previous year and is presented a day before the presentation of Union Budget reported that India’s economy is likely to grow at 6.3-6.8% in 2025-26. The GDP growth rate is estimated to slip to 4 year low of 6.4 % in the current fiscal year ending March 2025. The Economic Survey also underlined that if the country is to become a developed nation i. e Viksit Bharat, it has to grow at 8% for the next two decades. To achieve the goal of Viksit Bharat and maintain a growth rate of 8% for the next two decades, the investment rate must rise to 35 per cent of GDP from the present 31 per cent. The highlights of the Union Budget 2025-26 are as mentioned below:

Investing in Peoples: The Finance Minister emphasized investment as the third engine of growth, which includes investing in people, the economy, and innovation. As part of investing in people, the government is focusing on the Sashakt Anganwadi and Poshan 2.0 programs, which provide nutritional support to over 8 crore children, pregnant women, lactating mothers, and around 20 lakh adolescent girls in aspirational districts and the Northeast region. The cost norms for these programs will be enhanced.

Relief to Middle Class: Union Finance minister Nirmala Sitharaman in this budget has announced an increased income tax exemption for income up to ₹12 lakh per annum. This means that people who earn under ₹12 lakh per annum will not have to pay any taxes. “The middle class provide strengths to the economy.

Increasing competitiveness of Footwear and Leather industry: To boost the productivity, quality, and competitiveness of India’s footwear and leather sector, a focused products scheme will be introduced to support design capacity, component manufacturing, and machinery required for producing non-leather quality footwear, in addition to supporting leather footwear and products. This scheme is expected to create employment for 22 lakh people, generate over ₹400 crore, and achieve exports of over ₹1.1 lakh crore.

Health: Patient assistance programs run by pharmaceutical companies will be fully exempt from Basic Customs Duty (BCD), provided the medicines are supplied free of cost to the patients. Additionally 13 new patient assistance programs will be included in the exemption list. To provide relief for cancer patients, those suffering from rare diseases, and chronic conditions, the government will add 36 life-saving drugs to the list of medicines fully exempt from basic customs duty. Six life-saving medicines will be added to a list with a concessional customs duty of 5%. Full exemption and concessional duty will apply to bulk drugs used for manufacturing these medicines. Budget 2025 Live Updates: The Finance Minister has also announced the establishment of daycare cancer centres in all district hospitals over the next three years to enhance cancer care accessibility. In FY 2025-26 alone, 200 centres will be set up. To further strengthen healthcare sector, 10,000 additional seats will be introduced in medical colleges and hospitals in the coming year, as part of a broader plan to add 75,000 seats over the next five years.

Formalizing Gig economy: Gig economy refers to the workforce that is engaged in temporary or freelance work. Gig workers are mostly working on a part time basis as a way to earn supplementary income. As they are largely unorganized, they are often exploited and face exclusion. To formalize the gig economy Finance Minister has come up with a provision for registration and identity cards. This will ultimately enhance social security and also ensure that the benefits of various government schemes are availed by them.

Electronic Equipment Industry: To bolster the domestic electronic equipment industry, creating opportunities for youth, a national framework will be developed to guide states in promoting Global Capability Centers (GCCs) in emerging Tier-2 cities, focusing on talent availability, infrastructure upgrades, bylaw reforms, and industry collaboration. Additionally, the government will enhance infrastructure and warehousing for air cargo, particularly for high-value perishable horticultural produce. Cargo screening and customs protocols will be streamlined to improve efficiency.

‘Made in India’ brand Toys: Finance Minister Nirmala Sitharaman has also announced measures to make India a manufacturing hub for toys. For this a scheme will be implemented to build a national action plan for toys, focusing on the development of clusters, skills, and a manufacturing ecosystem. This will help create high-quality, unique, innovative, and sustainable toys that represent the ‘Made in India’ brand,”

Nuclear Energy Mission: A Nuclear Energy Mission to drive India’s transition towards clean energy has also been announced. The government has set up a goal of developing at least 100 GW of nuclear power by 2047. For this the government also plans to facilitate greater private sector participation by making the necessary amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. Additionally, a dedicated research and development initiative for Small Modular Reactors (SMRs) will be launched with an outlay of ₹20,000 crore. As part of this mission, at least five indigenously developed SMRs are expected to be operational by 2033.

Urban Challenge Fund: Creation of a ₹1 lakh crore Urban Challenge Fund to drive the transformation of cities into growth hubs, support creative redevelopment, and enhance water and sanitation infrastructure is also a key announcement in the budget. This fund will finance up to 25% of the cost of bankable projects, with a requirement that at least 50% of the funding comes from bonds, bank loans, or public-private partnerships (PPPs). An initial allocation of ₹10,000 crore has been proposed for the fiscal year 2025-26 to kick start the initiative.

Agriculture: For the agriculture sector, budget 2025-26 focuses on seeds, cotton, pulses. It talks development of 100 districts which lack behind on important agricultural parameters through Dhan Dhanya Krishi Yojana, enhanced support to entrepreneurs and MSMEs, enhancement of loan limit under KCC to five lakhs from three lakhs, establishment of a gene bank, a national institute of Food Technology. Entrepreneurship and Management and Makhana Board in Bihar and besides setting up of a Urea plant in Assam.

Hon’ble Finance minister started his budget address with, ‘together, we aim to unlock India’s potential and the Union Budget 2025-26 continue the efforts of the government to accelerate growth. She concluded by saying that this budget is dedicated to accelerating growth, driven by our aspirations for a ‘Viksit Bharat.’ Let us all contribute in reshaping the future of our country to achieve the goal of making country Viksit Bharat by 2047 by empowering Garib, Yuva, Annadata and Nari-Shakti (GYAN)

The author is a Scientist at SKUAST-Jammu, can be reached at pkumar6674@gmail.com