Budget 2025: A Pragmatic Approach to Economic Growth and Social Upliftment
- Ravi Kohli
- Feb 6
- 4 min read
Updated: May 11
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has been widely recognized as one of the most comprehensive and growth-oriented budgets in recent years. It takes a balanced approach by addressing concerns related to taxation, research and development, employment generation, infrastructure, and rural development. The budget signals a clear commitment to economic expansion while ensuring financial relief for individuals and businesses.
Among those analyzing its long-term impact is Abhay Bhutada, a well-regarded entrepreneur and philanthropist, who is the Founder and Chairman of the Abhay Bhutada Foundation. His work in the financial and social sectors has given him a strong understanding of how policies shape economic opportunities for individuals and businesses. He views this budget as a strategic step toward a more progressive and financially inclusive India.
“This budget leaves no one behind. It’s not just about tax revision—it’s about uplifting every sector ingeniously. It is a strong step towards taking the nation in the right direction. I can confidently believe that India’s future is bright.”
This budget stands out because it does not simply aim for short-term relief but instead lays the groundwork for sustainable, long-term economic progress. Below is an in-depth look at how its key provisions will impact different sectors of the economy.
Tax Reforms: Strengthening Financial Stability for Individuals and Households
One of the most anticipated reforms in the budget was the increase in the income tax exemption limit to ₹12 lakh per annum. This change is expected to have a broad economic impact by improving financial stability for individuals and households.
Implications of Tax Relief:
Encourages higher savings and investments, leading to long-term financial security.
Increases disposable income, which strengthens consumer spending and overall economic activity.
Provides an incentive for more individuals to enter the formal economy, improving compliance and tax revenue.
Abhay Bhutada has long supported financial empowerment and literacy, especially among young professionals. He believes that reducing tax burdens allows individuals to make more informed financial decisions that benefit both their future and the economy as a whole.
Research and Innovation: A Long-Term Investment
in Economic Growth
The budget places significant emphasis on research and technological development, allocating
₹20,000 crore to private sector-driven R&D and innovation. Additionally, the PM Research Fellowship has been expanded to support 10,000 students in leading institutions such as IITs and IISc.
Why This Matters:
Strengthens India’s position as a hub for innovation, particularly in sectors like technology, healthcare, and sustainable energy.
Encourages partnerships between academic institutions and industries, ensuring a seamless transition from research to practical application.
Expands opportunities for students and researchers to contribute to global advancements in science and technology.
Through the Abhay Bhutada Foundation, Abhay Bhutada has actively supported STEM education and skill-building initiatives for students from underprivileged backgrounds. He sees these budgetary provisions as an important step in nurturing a highly skilled workforce that can drive India’s future economic growth.
Entrepreneurship and Job Creation: Strengthening India’s Business Landscape
India’s economic growth is closely linked to the success of its entrepreneurs and small businesses. This budget provides several incentives to foster entrepreneurship and job creation, including:
Tax exemptions on critical manufacturing components such as lithium-ion batteries, textile looms, and LED/LCD panels.
Expansion of the job creation scheme, with a target of 22 lakh new jobs in sectors like footwear and leather manufacturing.
Continued investment in MSMEs and domestic manufacturing, reducing dependency on imports and fostering self-reliance.
Impact on Business Growth:
Reduces costs for startups and manufacturing businesses, making India a more competitive player in global markets.
Encourages investment in high-growth sectors, particularly in technology, green energy, and consumer goods.
Strengthens the overall employment ecosystem, offering more opportunities to skilled and semi-skilled workers.
As an entrepreneur himself, Abhay Bhutada understands the importance of an enabling environment for business growth. He believes that lowering tax burdens, simplifying regulations, and encouraging domestic production are key to strengthening India’s business landscape.
Agriculture and Rural Development: Ensuring Inclusive Economic Growth
The budget also focuses on agriculture and rural economic development, ensuring that India’s economic expansion is inclusive and benefits communities beyond metropolitan areas.
Some key initiatives include:
Development of 100 agricultural districts under the Dhan-Dhaanya Krishi Yojana, supporting 1.7 crore farmers.
Establishment of the Bihar Makhana Board, which will facilitate value addition, processing, and market expansion for makhana farmers.
Infrastructure development to improve connectivity, irrigation, and rural employment opportunities.
Why This Is Significant:
Encourages economic self-sufficiency in rural areas, reducing migration to urban centers.
Supports sustainable agricultural practices and access to better technology.
Improves supply chain efficiency, allowing Indian agricultural products to compete in international markets.
Abhay Bhutada has consistently advocated for financial inclusion and economic equity, and he sees rural development as a fundamental part of India’s long-term prosperity. His foundation has worked on educational initiatives that equip rural students with the skills needed to enter modern industries and businesses.
Infrastructure and Connectivity: Expanding Economic Opportunities
The government’s decision to revamp the UDAN Scheme is another significant step toward
ensuring regional economic integration. The expansion plan includes:
120 new destinations to enhance domestic and regional connectivity.
A target of 4 crore passengers transported over the next decade.
Further investments in airport and transportation infrastructure.
Economic Benefits of Improved Connectivity:
Facilitates greater mobility for professionals, students, and entrepreneurs.
Enhances regional trade and tourism, creating new employment opportunities.
Strengthens logistics networks, benefiting supply chains and business operations.
Expanding infrastructure is a key driver of economic growth and stability, and Abhay Bhutada believes that greater connectivity leads to a more integrated and financially empowered India.
A Budget That Builds the Future
The Union Budget 2025 is not just an economic roadmap—it is a commitment to long-term growth
and financial empowerment. By focusing on:
Tax relief that strengthens individual and household financial security.
Investments in research and education to foster innovation.
Support for entrepreneurship and job creation to drive economic expansion.
Agricultural and rural development initiatives to ensure inclusive progress.
Infrastructure investments that facilitate connectivity and mobility.
This budget reflects India’s aspiration to be a self-reliant, innovation-driven economy while ensuring that economic benefits reach all sections of society.
Abhay Bhutada sees these initiatives as a step in the right direction, emphasizing that sustainable development requires not just policy shifts but also active participation from businesses, educational institutions, and philanthropic organizations. His foundation continues to work toward ensuring that India’s youth and underserved communities can fully participate in this economic transformation.
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