This is done while maintaining the fiscal discipline — 4.8 per cent in FY25 and with a target of 4.4 per cent in FY 26 — inspite of giving away ₹1 lakh crore through direct taxes to increase consumption, especially to the middle class. This will help bring in international investors to further support the infrastructure development initiatives of the government.
The ₹11.21 lakh crore capex for infrastructure is welcome, with 10 per cent growth over last year. A key shift is granting private sector access to PM Gati Shakti data, enabling investors to track projects, assess utilisation, and identify future opportunities.
This initiative will further help the user sector — for example, logistics players — to utilise this infrastructure more efficiently and transparently. The integration with the new Geospatial Mission adds another dimension, enabling precise planning and execution of infrastructure projects through advanced data analytics and spatial mapping.
Trade fillip
Another significant change is the extension of Digital Public Infrastructure (DPI) to cross-border trade, mirroring the success of the Unified Logistics Interface (ULI) in domestic goods movement. This should enable easier exports and imports clearance, and this development is particularly crucial for improving India’s ease of doing business rankings and reducing logistics costs.
The government’s MSME development efforts stand out. Raising investment and turnover limits by 2.5x and 2x helps growing businesses retain MSME status. Higher credit guarantees boost liquidity, while targeted schemes support women entrepreneurs.
The National Manufacturing Mission’s holistic approach, addressing everything from ease of doing business to technology adoption, shows the government’s commitment to making India a global manufacturing hub.
The Government’s sector-wise export promotion councils will work on identifying specific gaps and support to make India become part of the global supply chain, address non-tariff barriers and enable India take advantage of strategic shifts in global supply chains.
The Budget benefits the middle class through tax relief, boosting disposable income and consumption. Upskilling initiatives and CoEs drive growth, while MSME support, credit expansion, and urban development schemes fuel aspirations.
Key engines
Looking ahead, the Budget is addressing specific areas that required attention and has provided the basis for solving their problems. A full exploitation of the same will depend on effective implementation and coordination between various stakeholders.
The government’s focus on four key engines — agriculture, MSMEs, investment, and exports — provides a clear roadmap for sustainable growth. The emphasis on reforms as the catalyst for these engines suggests a continued commitment to structural improvements in the economy.
Initiatives like the infrastructure data democratisation, digital trade facilitation and others will ensure that India’s growth story will continue to be better compared with the rest of the world.
This Budget not only addresses immediate economic needs but also continues to lay a strong foundation for India’s journey towards becoming a Viksit Bharat by 2047.
The writer is Executive Chairman, TVS Supply Chain Solutions
