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Union Budget 2025 : PM Narendra Modi Aims To Spur Growth And Ease Living Costs

As Prime Minister Narendra Modi’s government prepares to unveil the Union Budget 2025-26, the nation faces critical economic challenges, including sluggish growth, inflationary pressures, and the need for job creation.

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Union Budget 2025 : PM Narendra Modi Aims To Spur Growth And Ease Living Costs


As Prime Minister Narendra Modi’s government prepares to unveil the Union Budget 2025-26, the nation faces critical economic challenges, including sluggish growth, inflationary pressures, and the need for job creation. Finance Minister Nirmala Sitharaman will present the budget for the eighth consecutive time on February 1, 2025, at 11:00 AM in the Lok Sabha.

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India’s economic growth is projected to post its slowest pace in four years due to weak urban demand and inflation risks exacerbated by a fragile currency. While near-term growth aligns with the 10-year average, economists stress the need for an 8% growth rate to meet the country’s long-term economic objectives and create sufficient jobs for its youthful population.

Challenges Facing the Middle Class

Rising living costs have hit the middle class hard, leading to growing concerns about their quality of life. The slowing economy has also unsettled equity markets, further dampening consumer sentiment.

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The government may introduce tax cuts on income and energy products to alleviate financial burdens on individuals. Additionally, it is expected to build on the $24 billion (₹2.08 lakh crore) job creation programme announced in the first post-election budget in July.

Despite economic challenges, the government is likely to pursue growth-supportive fiscal policies while maintaining a focus on fiscal consolidation. Analysts anticipate that the fiscal deficit target for the current year will be slightly bettered, with a projection to reduce it below 4.5% in the coming fiscal year starting April 1.

Deregulation and Structural Reforms

India’s chief economic advisor has called for long-overdue reforms in areas such as land and labour to boost medium-term growth. Systematic deregulation, in collaboration with state governments, is essential to achieve India’s ambitious economic goals, including becoming a $5 trillion economy by 2025 and a developed nation by 2047.

India faces potential global disruptions due to US President Donald Trump’s trade policies. To counter these challenges, India is reportedly lowering tariffs on goods and offering incentives such as tax cuts and land access to attract US companies in sectors like semiconductors and electronics. Modi is expected to discuss these issues with Trump later in February.

Key Budget Expectations

  • Tax Relief: Reports suggest possible tax relief for individuals earning up to ₹15 lakh per year.
  • Incentives for Businesses: The budget might include tariff reductions on components for mobile phone assembly and other electronics to strengthen India’s position in global supply chains.
  • Energy and Inflation Management: Measures to control inflation and stabilize energy prices.

Modi’s Vision for India’s Economic Future

Speaking before the start of the budget session, Modi expressed confidence that the budget “will give new faith and trust” to the country. Stakeholders are hopeful for a budget that addresses current economic challenges while setting the foundation for long-term growth.

As Nirmala Sitharaman presents the Union Budget 2025-26, the nation eagerly awaits comprehensive measures that will revive growth, ease financial burdens, and position India as a resilient and competitive player in the global economy.

Read More : Commercial LPG Cylinder Prices Reduced By ₹7 Ahead Of Union Budget


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