By Saurabh Shukla
New Delhi:The industry has hailed the Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Saturday and is very happy with it.
The industry also believes that the government's decision to increase the tax slab and make income up to 12.75 lakhs tax-free will not only boost spending but also provide a significant amount of disposable income to the people. This increased income is expected to add value to the economic chain, the industry said.
President of PHD Chamber of Commerce, Hemant Jain, told ETV Bharat that this has been a very progressive budget and our economic situation was not kind of good but these budget announcements definitely going to not only boost the economy but also add in job growth. He also added that our exports are definitely going to increase.
Sitharaman announced that exporter MSMEs can now avail increased credit benefits from Rs 5 crore to Rs 10 crore, generating additional credit of 1.5 lakh crore in the next five years. Also, well-run exporter MSMEs will receive increased term loans from Rs 10 crore to Rs 20 crore.
Besides this, the government announced credit cards for micro-enterprises as well. 10 lakh cards with a credit limit of Rs 5 Lakhs, benefiting E-commerce exporters.
Economist Dr. SP Sharma believes that this year's budget will particularly benefit the middle class. "The tax relief from the Finance Minister is expected to enhance consumption, which will, in turn, create employment. Additionally, the government's announcements will support the rural economy. The initiative at the district level will primarily benefit rural areas and contribute to strengthening the rural economy," Sharma said.
He also added that the thrust towards capital expenditure will be a game changer. "Though the government has announced little small amount as compared to last year, this amount is definitely going to create employment and again revive the complete economic cycle will be a larger benefit," added Sharma.
The Union Budget for 2025-26 has focused on fiscal consolidation while clearly prioritising consumption over investment. By putting more money into the hands of tax-paying middle-class citizens, the Finance Minister aims to boost spending, which had slowed down in recent months. At the same time, capital expenditure has been scaled back at a lower base and is now expected to grow in line with nominal GDP, added Sharma.
