Transformative reforms will strengthen India’s journey towards Viksit Bharat: PHDCCI

The focus on  Middle class and MSMEs will enhance consumption and production segments, boost private investments and create employment opportunities, says the industry body PHDCCI

We appreciate that the Union Budget 2025-26 is dedicated to accelerating growth, driven by aspirations for 'Viksit Bharat.' Our economy remains the fastest growing among all major economies, said Hemant Jain, President, PHDCCI, in a press statement issued here today.

The focus areas of the Budget include accelerating growth, securing inclusive development, invigorating private sector investments, uplifting household  spending, and enhancing spending power of India's rising middle class, said Shri Hemant Jain.

The key focus areas in the Union Budget including taxation, power, urban development, mining, the financial sector, and regulatory reforms, are major ingredients of development. These areas will drive growth, improve infrastructure, enhance governance, and ensure sustainable development across various sectors, said Shri Hemant Jain.

The size of the Budget at Rs 47.16 lakh crore, including a capital expenditure of ₹10.1 lakh crore, will boost the economy, he said.

Fiscal deficit at 4.8% for FY 2025 and at 4.4% for FY 2026 display the fiscal management  of India in line with the FRBM statement, he said.

We appreciate that the new income tax bill is designed to be clear and direct in its language, ensuring simplicity and ease of understanding for both taxpayers and tax administrators. Its straightforward text aims to eliminate confusion, making it more accessible and user-friendly for all stakeholders involved, said Shri Jain.

We appreciate the strong steps to boost the middle income group, including Budget announcement of no income tax upto the income of Rs 12 lakh with tax rebate for those with income upto Rs 12 lakh, he said.

The income tax relief to the middle class will boost consumption, factory expansion and employment in the country, said Shri Jain.

This will create a virtuous cycle in the economy and strengthen its journey towards Viksit Bharat, said Shri Jain.

The Dhan Dhanya Krishi Yojna in partnership with states will cover 100 districts and  1.7 crore farmers, will boost the rural development, consumption trajectory and under employment in the farm sector, he said.

The Budget announcement that the government will launch a 6-year mission aimed at achieving self-reliance in pulses, with a special focus on tur and masoor will address the escalations in food inflation, said Shri Jain.

A Makhana Board in Bihar will enhance processing and value addition. The board will offer support and trade-related technologies while ensuring that farmers benefit from all relevant government schemes, said Shri Jain.

The government’s efforts to secure inclusive development and invigorate private sector investment would go a long way to boost employment creation, said Shri Jain.

Credit guarantee cover enhanced from ₹5 crore to ₹10 crore for micro-enterprises leading to additional ₹1.5 lakh crore credit in next 5 years will strengthen MSMEs in the country and manufacturing competitiveness with increased exports, he said.

We appreciate the introduction of customised credit cards; a fund of funds for startups; and a new fund-of-funds (fof) with expanded scope for MSMEs, as MSMEs are responsible for 45% of exports and employ 7.5 crore workers, to turn India to a global manufacturing hub, he said.

New Fund of Funds (FoF) with fresh expanded scope & fresh contribution of ₹10,000 crore to be set up. FoF for startups received commitments for over ₹9 lakh crore, is highly appreciable, said Shri Jain.

A new manufacturing mission under the Make in India initiative to support SMEs and large industries through comprehensive policy backing and a detailed framework will create an ecosystem for solar PV cells, electrolysers, and grid-scale batteries, he said.

We appreciate the Scheme to focus on manufacture of sustainable toys with a Made in India brand. This scheme will support in making India a global manufacturing hub, he said.

The budget announcement to boost PPP in infrastructure is highly appreciable. The budget announced a  3-year pipeline of projects by states to be given that can be implemented in private-public partnership (PPP) mode, with outlay of ₹1.5 lakh crore proposed for 50-year interest-free loans will boost the infrastructure development in the country, he said.

It is highly appreciable that the Government has announced to establish ₹1 lakh crore urban challenge fund for growth hubs. This will finance 25% of the cost of bankable projects, with an allocation of ₹10,000 crore for 2025-26, with the remaining 50% to be funded through bonds, bank loans, and public-private partnerships (PPPs), he said.

The revamping of the shipbuilding financial assistance policy with a dedicated Maritime Development Fund having a corpus of ₹25,000 crore, will boost the sector, he said.

We appreciate that the Union Budget announced strong steps towards India’s energy transition with power sector reforms, to realise 100GW nuclear energy by 2047. Additional borrowing of 0.5% of GSDP by states, nuclear energy mission for R&D of small modular reactors with an outlay of ₹20,000 crore related announcements will boost the sector, said Shri Jain.

The Budget announcement of launch of the modified UDAN scheme, and expansion of greenfield airports, especially in Bihar, to boost infrastructure development in the country, he said.

The tourism sector will receive a strong boost with PM Gati Shakti data accessibility to the private sector, and the development of the top 50 tourist destinations, he said.

Strong steps to boost technology and innovation including deeptech Fund of Funds with 10,000 fellowships for tech research at IITs and IISc under the PM Research Fellowship Scheme, are highly appreciable, he said.

Support to MSMEs to tackle non-tariff barriers in exports including Export promotion mission, and setting up of Bharat Trade Net under digital public infrastructure, is highly appreciable, he said.