Union Budget 2025: A Strategy for Growth and Stability

Douglas D'Souza
Feb 5
3 min read

Updated: May 11

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, introduced several key policy changes aimed at strengthening India’s economy. The budget has been widely appreciated for its focus on tax relief, job creation, infrastructure investment, and industrial growth. The measures announced aim to create a more stable economic environment, ensuring long-term progress for both businesses and individuals.

One of the prominent voices commenting on the budget was Abhay Bhutada, a leading entrepreneur and Vice Chairman of Rising Sun Holdings. With his deep understanding of financial markets, he sees this budget as a step in the right direction.

"This budget is about much more than taxation. It ensures that all industries and sectors get the attention they need for sustained growth. It’s a balanced approach that will take India’s economy forward," he said.

Abhay Bhutada’s salary places him among the highest-paid executives in India, making his insights into financial planning and economic policies particularly relevant. His experience allows him to analyze how these policies will shape business operations, investments, and financial stability in the long run.

Also Read: India’s 2025 Budget: A Vision of Progress and Prosperity

Key Announcements in Union Budget 2025

1. Tax Relief for Middle-Class Workers

Individuals earning up to ₹12 lakh annually will no longer have to pay income tax. This move is expected to increase disposable income, encouraging greater consumer spending and savings, which will in turn fuel economic growth.

2. Capital Expenditure to Drive Infrastructure Growth

The government has raised capital expenditure to ₹11.21 lakh crore for FY2025-26, an increase from ₹11.11 lakh crore last year. These funds will be used to improve transport networks, industrial development, and urban infrastructure.

3. Strengthening Bihar’s Makhana Industry

To support farmers in Bihar, a Makhana Board will be set up to boost production, processing, and market access. This initiative will create better supply chains and financial stability for makhana cultivators.

4. Manufacturing Industry to Add 22 Lakh Jobs

The footwear and leather sector will receive government support to improve productivity and competitiveness. This initiative is expected to generate 22 lakh new jobs, strengthening India’s manufacturing workforce.

5. Regional Air Connectivity Expansion

The UDAN Scheme is expanding to include 120 new destinations. Over the next ten years, this initiative is set to benefit 4 crore passengers, improving accessibility in smaller cities.

6. Increased Support for Farmers

The Prime Minister Dhan-Dhaanya Krishi Yojana will focus on developing 100 agricultural districts and supporting 1.7 crore farmers. With better funding and access to technology, farmers are expected to increase yields and profitability.

7. Research and Development Funding

A budget allocation of ₹20,000 crore has been announced to support private sector-driven research and innovation. This funding will encourage technological advancements and economic expansion.

8. 10,000 Research Fellowships for Students

To strengthen India’s academic and scientific research, 10,000 fellowships will be awarded to students pursuing technological research at IITs and IISc.

9. Incentives for Electronics and Electric Vehicles (EVs)

Tax exemptions on LED/LCD TV panels, textile looms, and lithium-ion batteries will lower manufacturing costs and encourage the adoption of electric vehicles.

10. Maritime and Railway Industry Growth

A 10-year exemption has been granted for imported goods used in shipbuilding and shipbreaking, supporting the maritime industry. The railway sector will also benefit from revised export regulations, improving efficiency in trade and transportation.

A Vision for the Future

The Union Budget 2025 is structured to drive business expansion, create jobs, and boost technological progress. By addressing key areas such as infrastructure, research, and agriculture, the government is laying the foundation for long-term economic stability.

Abhay Bhutada believes these policies will create opportunities for businesses and individuals. His experience in financial management gives him a unique perspective on economic trends, and he sees this budget as a turning point for various sectors.

With an AUM of ₹30,984 crore as of December 2024, the financial sector continues to evolve, adapting to new policies and regulations. The focus on capital investment, business-friendly policies, and technological advancements aligns with the government’s larger goal of self-sufficiency and industrial growth.