Bold Budget to provide consumption impetus to economy, unleashing of entrepreneurial spirit: ASSOCHAM
New Delhi : Describing it as a ”bold” Budget to boost consumption particularly from the vibrant middle-class families, ASSOCHAM today said, ” Finance Minister Mrs Nirmala Sitharaman has lived up to wider expectations by giving significant relief to individual taxpayers, maintaining the fiscal deficit of 4.4 per cent of GDP”.
In his reaction to the Union Budget for 2025-26, ASSOCHAM President Sanjay Nayar said, ” The finance minister has placed her confidence in the middle class for leading the consumption-led growth ”. At the same time, there is a clear focus on unleashing the potential of the MSMEs, Startups and exports.
He said pick up in consumption demand would, in turn, encourage investment as well in the medium term while several employment-oriented sectors such as tourism, textile, handicrafts, footwear and toys have been given an immediate impetus for take-off.
”Priorities to agriculture, rural demand, agro and food processing, warehousing and marine products would infuse a greater vibrancy in the country’s rural landscape,” he said.
Mr Nayar said, leaving annual income of individuals up to Rs 12 lakh a year tax -free and rationalising TDS/TCS thresholds and slabs would not only provide ease of living for common citizens but also provide an ease of doing business for small and micro entrepreneurs.
”As was indicated by Prime Minister Shri Narendra Modi, his government has foregone a revenue of Rs 1 lakh crore, on account of direct tax exemptions and reliefs, mainly to the middle class. This is quite a bold approach and should pay off to the economic growth.”
Government ‘s trust in taxpayers is seen enhanced as the focus of the Budget proposals and the forthcoming new Income Tax Bill is on voluntary tax compliance with ease of procedures.
The finance minister has also addressed the issue of customs duty inversion by rationalising the rates. She has also placed priorities on Make in India by value-added manufacturing in sectors such as electronics by lowering customs on essential raw material and critical minerals.
Continued priorities to climate change and transition to clean energy , as reflected in the Budget proposals, place India in the global leadership role in environment protection even as there are counter moves back towards fossil fuels by some large economies of the world.
Startups have been given several easy dispensations which include enhancement of credit guarantee cover from Rs 10 crore to Rs 20 crore. For MSMEs, the credit guarantee cover has been raised to Rs 10 crore from Rs 5 crore.
A new Fund of Funds for additional Rs 10,000 crore contribution from the government would encourage Alternative Investment Funds bet on startups.
The Budget is also inclusive as it commits itself to affordable housing, rural women and healthcare.
Scaling up infrastructure of IITs and increasing seats in medical education would lead to improved human resources. A renewed focus on skill development through a series of measures including those with global partnership would help India be ready to leverage new technologies like AI. Resource commitment to AI would also be beneficial to innovations.
