New Delhi [India], February 1 : The Federation of Indian Chambers of Commerce and Industry (FICCI) has welcomed the Union Budget 2025-26, stating that it effectively addresses immediate economic challenges while keeping a firm focus on the long-term vision of 'Viksit Bharat'.
FICCI president Harsha Vardhan Agarwal lauded the government's "balanced approach", emphasizing that the Budget provides a comprehensive, inclusive, and forward-looking roadmap.
"Through the Budget the government has made a strong effort to address the immediate challenges being faced by the economy, particularly on the consumption front, while keeping an eye on the long-term target of pursuing the vision of 'Viksit Bharat'. FICCI would like to compliment the Finance Minister for a comprehensive, inclusive and forward-looking budget that encompasses a heavy dose of reforms, fiscal stimulus and a clear focus on the farm sector, MSMEs, youth and women of the country," he said, according to a release.
"The budget proposals will re-energise the economy by lifting the sentiments of the middle class and nudging the private sector to advance its investment plans as demand improves across sectors," he added.
Presented amid slowing economic growth, the Budget 2025-26 incorporates measures to spur both consumption and investment demand.
The revision in the personal income tax structure is a significant move, expected to enhance disposable income and stimulate consumption. While the increase in capital expenditure may appear modest compared to previous years, it remains a positive indicator for economic growth.
The Budget places renewed emphasis on agriculture, unveiling a targeted program for 100 districts with low productivity, moderate crop intensity, and below-average credit parameters.
FICCI noted that this aligns with its pre-budget recommendation for an agricultural yield mission in these districts. Additionally, the introduction of a National Mission on High-Yielding Seeds is expected to mitigate the impact of climate change on farming.
The six-year mission focusing on improving the yield of pulses will also play a crucial role in controlling inflation and ensuring food security.
Recognizing the MSME sector as the backbone of the economy, the government has introduced twin measures: revising the classification criteria for MSMEs and doubling credit limits with a guarantee cover.
These initiatives are poised to bolster growth in this vital segment. Furthermore, the focus on labour-intensive sectors such as footwear, leather, food processing, and toys will boost employment, particularly in Tier 2 and Tier 3 cities.
The Budget's focus on the maritime sector is evident through the introduction of a Maritime Development Fund, aimed at enhancing the marine economy, particularly in coastal states.
Additionally, the expansion of the UDAN scheme, with plans to connect 120 new destinations, is expected to spur economic activity in newly linked regions and create emerging growth centres.
To further strengthen the 'Make in India for the World' initiative, the government has announced Bharat Trade Net, a new digital public infrastructure to unify trade documentation and financing solutions. FICCI believes that this will streamline the export process, reducing costs and improving efficiency, thereby enhancing India's global trade competitiveness.
A significant portion of the Budget is dedicated to improving India's skilling ecosystem. Key announcements include increasing capacity in IITs, expanding medical education seats, setting up 50,000 more Atal Tinkering Labs, and establishing a Centre of Excellence for AI education. These measures are designed to equip Indian youth with the skills necessary to meet the demands of emerging global industries.
The Budget also introduces several key regulatory and governance reforms aimed at improving the ease of doing business. Initiatives such as the revamped Central KYC registry, the new Income Tax Bill, Jan Vishwas Bill 2.0, and a reduction in applicable customs tariff rates demonstrate the government's commitment to the principle of 'Minimum Government, Maximum Governance'.