In the first budget of Modi 3.0, the clear direction is to build a foundation with jobs in manufacturing, urban development, energy access, and energy security. The budget effectively bridges the gap between intent and implementation with a focus on higher education access, supporting the new workforce, job creation, employer support, incentivizing R&D, and skilling women.
The budget maintains a strong emphasis on infrastructure capex and the attention given to regions impacted by climate incidents has the potential to help India develop technologies for climate resilient infrastructure. Energy availability, accessibility and affordability have a multiplier impact on the country’s economic development. And the budget recognises the same through the upcoming report on the energy transition and its commitment to multiple pathways in the budget – from advanced ultra super critical thermal power plants, modular nuclear reactors, to fiscal support of pumped storage and rooftop solar and tax revision of components in the solar value chain.
Additionally, the budget promotes engagement with private entities along the energy value chain—shifting targets from energy efficiency to emissions, fostering public-private partnerships in R&D for new energies, and removing the angel tax on startups, including those in climate tech. These measures are expected to drive progress in the emerging energy transition market.
The Union Budget introduces several forward-thinking measures aimed at boosting the growth of MSMEs and traditional artisans. Key among these is the establishment of E-Commerce Export Hubs through public-private partnerships (PPPs), which will enable MSMEs and artisans to access international markets more effectively. Additionally, the development of Digital Public Infrastructure (DPI) applications will enhance services across critical sectors, including credit, e-commerce, education, health, law and justice, logistics, MSME services, and urban governance.
Another notable development is the reduction of Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Board Assemblies (PCBA), and mobile chargers to 15 percent, which is set to support the growth of the mobile industry and reduce costs for consumers. These initiatives collectively aim to foster economic growth, support technological advancements, and improve global market access for local businesses.
The budget is both timely and poised to significantly empower people, promote inclusive growth, and stimulate consumption and economic expansion. The budget also addresses agriculture with a 20% increase in outlay, focusing on crop diversification, climate resilience, and digitalization of farmer information and finance. Urbanization efforts, including reliable utilities, low-cost housing, and improved access to finance, aim to enhance the quality of life for the growing middle class to match the standards expected of the world’s third largest economy that India aspires to be.
(The author is Chairman, CII Karnataka)
