The Union Budget 2025 has been described by Amitabh Kant, former CEO of NITI Aayog, as a game-changer for India's economic future. According to Kant, this progressive and forward-thinking budget is key to India's transformation into a $30 trillion economy.
He firmly believes that the budget will pave the way for sustained economic growth of 8 to 9 per cent annually over the next three decades, setting the stage for India to grow from its current $4 trillion economy to $30 trillion.
Kant is confident that the vision outlined in the budget aligns perfectly with India’s long-term ambitions. The growth projections, which aim to increase India’s GDP ninefold and per capita income eightfold, are seen as a clear path towards a prosperous future.
However, Kant believes that the true impact of the budget will only be felt once the Income Tax Bill is implemented. While the budget offers substantial relief to the middle class, its actual effects can only be judged once these changes come into force. Kant urged that while the tax reforms are significant, their real value will be clearer only when they are fully enacted and evaluated.
In the context of ongoing global trade tensions, Kant highlighted the need to strengthen India’s domestic economy. He emphasised that the budget’s provisions, particularly the tax relief measures, are designed to spur consumption.
This increased consumption is expected to fuel production and employment, creating a positive feedback loop that drives further economic expansion. By focusing on these areas, the budget aims to stimulate growth and create jobs, which are essential for India's continued development.
One of the key elements of the budget is its fiscal prudence. Kant noted that the fiscal deficit is projected to decline, with a target of 4.4 per cent for the coming year, down from 4.8 per cent this year.
This commitment to maintaining financial discipline is seen as an important step towards achieving long-term economic stability.
Furthermore, the budget has been praised for its focus on innovation and startups. Kant drew attention to the budget’s emphasis on supporting entrepreneurial ventures and technological advancements.
The creation of a fund of funds for startups, along with a focus on deep-tech innovation, shows a commitment to fostering an environment that supports business growth and technological progress. This is seen as a critical element in driving long-term, sustained growth for the Indian economy.
Kant also noted the budget’s efforts to support the startup ecosystem by introducing measures to foster innovation. The budget proposes a fund to support innovation and startups, including provisions to assist in the development of new technologies and business models.
This focus on innovation is expected to fuel economic progress by encouraging the growth of industries and businesses that can contribute to India’s economic advancement.
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