Union Budget 2025-26: Driving Growth Through Agriculture, MSMEs, Investment,…

The Union Budget 2025-26 sets a strategic course for India’s economic growth, emphasizing four key sectors—Agriculture, Micro, Small, and Medium Enterprises (MSMEs), Investment, and Exports. With targeted allocations and forward-looking initiatives, the budget aims to strengthen domestic production, enhance global competitiveness, and create sustainable development opportunities. Below is an in-depth analysis of the major initiatives under each sector.

Agriculture: Strengthening the Backbone of India

Recognizing agriculture as a critical pillar of the economy, the government has allocated ₹1.52 lakh crore to modernize the sector and promote rural development. The key initiatives include:

• Prime Minister Dhan-Dhaanya Krishi Yojana: Targeting 100 districts with low agricultural productivity, this initiative aims to benefit 1.7 crore farmers through improved crop diversification, irrigation, and storage facilities.
• Mission for Aatmanirbharta in Pulses: A six-year program focusing on self-sufficiency in pulses like Tur, Urad, and Masoor, with procurement support from agencies such as NAFED and NCCF.
• Enhanced Credit through Kisan Credit Card (KCC): The loan limit under the Modified Interest Subvention Scheme has been increased from ₹3 lakh to ₹5 lakh, providing farmers with greater financial flexibility.
• Makhana Board in Bihar: A dedicated board will be established to promote the production, processing, value addition, and marketing of makhana, benefiting farmers in Bihar.

MSMEs: Fueling Entrepreneurship and Economic Growth

MSMEs contribute nearly 45% of India’s exports and play a vital role in employment generation. The budget introduces several measures to boost this sector:

• Revised MSME Classification Criteria: To encourage growth and technological advancement, the investment and turnover limits for MSME classification have been raised by 2.5 and 2 times, respectively.
• Enhanced Credit Guarantee Cover: The credit guarantee cover for Micro and Small Enterprises has been doubled from ₹5 crore to ₹10 crore, unlocking ₹1.5 lakh crore in additional credit over five years.
• Support for First-Time Entrepreneurs: A new scheme will provide term loans up to ₹2 crore over the next five years to 5 lakh women, Scheduled Castes, and Scheduled Tribes entrepreneurs, fostering inclusive economic participation.

Investment: Building the Future Through Infrastructure and Innovation

Investment in infrastructure, innovation, and skills development is at the heart of this budget, with key allocations including:

• Capital Expenditure Boost: The government has earmarked ₹11.21 lakh crore (3.1% of GDP) for capital expenditure in FY2025-26, focusing on infrastructure projects.
• Atal Tinkering Labs: To nurture innovation and creativity among students, 50,000 labs will be established in government schools over the next five years.
• National Centres of Excellence for Skilling: Five world-class centers will be set up to equip youth with skills for ‘Make in India, Make for the World’ manufacturing.

Exports: Enhancing Global Competitiveness

To strengthen India’s position in global trade, the budget introduces the following measures:

• Export Promotion Mission: A structured initiative to streamline export processes and provide incentives for exporters, enhancing global competitiveness.
• BharatTradeNet: A digital platform designed to facilitate seamless trade by connecting exporters with international markets.
• Incentives for Electronics and EV Exports: Duty exemptions for open cells used in LED/LCD TVs and capital goods for lithium-ion batteries in mobile phones and electric vehicles, promoting domestic manufacturing and export expansion.

Conclusion

The Union Budget 2025-26 lays out a comprehensive strategy to drive economic growth by bolstering agriculture, empowering MSMEs, scaling up investments, and expanding exports. By fostering innovation, financial inclusion, and global trade, this budget aims to position India as a global leader across key sectors while ensuring sustainable development for the future.