These actions are expected to create new opportunities, increase demand, and release economic multipliers. India’s projected fiscal deficit for 2024–2025 is 5.1% of GDP, which will decline to less than 4.5% by 2025–2026 if inflation stays within the policy range. In addition to bilateral trade agreements that encourage foreign direct investment, the government’s emphasis on governance, development, and performance will prioritise domestic development.
The infrastructure sector is the backbone of any economy and is essential to driving growth. Over the previous four years, the government has increased capital investment by a considerable treble, which has resulted in tremendous economic growth and job possibilities. According to what the market anticipates, 11.1% more will be allocated to infrastructure development in the next year, or 3.4% of the GDP. In order to remove bottlenecks, improve logistics efficiency, and save operating costs, three new key economic railway corridor programs—the energy, mineral, and cement corridors, the port connectivity corridor, and the high traffic density corridor—are prioritized. It is true that growth and the economy will be supported by this ongoing emphasis on capex-led growth.
The ~1 trillion corpus will be vital in supporting technological research and motivating the private sector to significantly increase research and innovation activities, particularly in emerging areas. Prioritizing technology and research is essential for fostering economic expansion.
The availability of more institutional funding will provide research and development a big boost. An extended-term loan will be essential for fostering creativity, boosting young people’s self-esteem, and motivating them to achieve their goals. The new plan that will support the advancement of deep tech technologies for defence is something to look forward to. As a result, there will be significant incentives for the private sector to expand research and innovation in sunrise sectors.
This budget guarantees that sustainability and green energy will take centre stage as India enters a new phase beyond Amrit Kaal and aligns with the views expressed by India at the G20 meeting. India is still one of the most influential countries when it comes to sustainability and climate measures. India wants to be the bridge that connects the world in the coming years, therefore the emphasis on reaching its ambitious net zero aim by 2070 shows a commitment to a more sustainable future for both India and the rest of the world.