The Union Budget 2025-26 builds on the government’s efforts to boost economic growth through tax cuts, increased capital expenditure, and support for key industries. With a focus on employment generation, ease of doing business, and infrastructure development, the budget aims to stimulate economic activity and position India for long-term prosperity.
Key Announcements of Union Budget FY26
📌 IT Cuts and Economic Impact
✅ Income tax exemption for individuals earning up to ₹12 lakh annually.
✅ Standard deduction benefits for salaried taxpayers.
✅ Economic Effects:
- Higher disposable income → Increased consumer spending.
- Boost for retail, real estate, automobile & FMCG sectors.
- Job creation & higher indirect tax collections → Stronger economic growth.
Capital Expenditure & Infrastructure Development
✅ ₹11.2 lakh crore allocated for capital expenditure (10% increase from last year).
✅ Impact:
- Infrastructure projects (roads, railways, ports, airports) to enhance logistics & connectivity.
- Employment generation & private sector investment attraction.
- Lower business costs, improving India’s global competitiveness.
Manufacturing & National Manufacturing Mission
✅ ‘Make in India’ push through policy incentives, execution roadmaps, & governance reforms.
✅ Aims to reduce import dependency & attract foreign investments.
✅ Potential to establish India as a global manufacturing hub.
Key Sectoral Initiatives
📌 Focus on Labour-Intensive Industries
✅ Support for tourism, food processing, and leather industries.
✅ These sectors are major employment generators & contribute to export earnings.
Conclusion
The Union Budget 2025-26 lays a strong foundation for sustained economic growth by balancing tax relief, infrastructure investments, and policy reforms. Its focus on employment, industry, and fiscal discipline signals a strategic, forward-looking vision for India’s economic future. 🚀