Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, unveiled the Union Budget for 2025-26 on February 1, 2025, with a clear vision to steer India towards a “Viksit Bharat” – developed India. The budget highlights key measures to strengthen skills, education, employment, and entrepreneurship.
At the core of this vision are four economic engines – Agriculture, MSMEs, Investment, and Exports, each requiring strong support in training, skilling, and capacity-building to sustain long-term growth.
The budget is centered around 10 broad areas aimed at empowering the Garib, Youth, Annadata, and Nari. The proposed development measures include:
- Agricultural growth
- Rural prosperity
- Inclusive growth
- MSME support
- Employment-led development
- Innovation investment
- Energy security
- Export promotion
- Innovation nurturing
- Building opportunities
With an emphasis on inclusive growth, the budget strengthens structural reforms to enhance economic productivity, create employment, and address critical sectors such as agriculture, tourism, manufacturing, green energy, and skilling. These measures aim to position India as a global leader while ensuring equitable opportunities for all.
Key Highlights of the Union Budget 2025-26
Skilling and Higher Education
- Five National Centres of Excellence for Skilling to be established with global expertise and partnerships to equip youth for the “Make for India, Make for the World” initiative.
- Centre of Excellence in Artificial Intelligence for Education to be set up with an outlay of ₹500 crore.
- 10,000 additional seats to be created in medical colleges and hospitals over the next year.
- Infrastructure expansion in five IITs (established after 2014) to accommodate 6,500 more students.
Boosting Employment
- Focus Product Scheme for Footwear and Leather Sectors expected to create 22 lakh jobs, achieve a ₹4 lakh crore turnover, and export ₹1.1 lakh crore worth of products.
- National Initiative to Position India as a Global Toy Hub, promoting high-quality “Made in India” toys.
- National Institute of Food Technology, Entrepreneurship, and Management to be established in Bihar.
- Revamp of Shipbuilding Financial Assistance Policy to support domestic industry and employment.
Entrepreneurship and Startups
- New Fund of Funds for Startups with an additional ₹10,000 crore, doubling the existing government contribution.
- New Scheme to Support 5 Lakh First-Time Entrepreneurs from women, Scheduled Castes (SC), and ST communities.
Gig Workers and Informal Sector
- Identity cards and registration on the e-Shram portal for gig workers on online platforms.
- Socio-economic upliftment scheme for urban workers to be launched.
- PM SVANidhi scheme to be revamped with increased bank loans, UPI-linked credit cards (₹30,000 limit), and capacity-building support.
Industry in Focus – Tourism
- Development of the top 50 tourist destinations through state partnerships via a challenge mode.
- MUDRA loans for homestays to boost local tourism-based entrepreneurship.
- Special initiatives for tourism linked to the life and times of Lord Buddha.
Exports for Propelling Growth
- Support for domestic manufacturing capacities to enhance integration into global supply chains.
- Government support for domestic electronics industry to capitalize on Industry 4.0 opportunities.
Rural Prosperity and Resilience
- Creating job opportunities in rural areas to make migration an option, not a necessity.
- Enterprise development for rural women, fostering financial independence and employment.
- Encouraging young farmers and rural youth to engage in new business ventures.
Also read: Budget 2024-25 Highlights – Skilling, Employment and Higher Education
Supporting Domestic Manufacturing
- Exemption of Basic Customs Duty (BCD) on critical minerals like cobalt powder, lithium-ion battery waste, lead, and zinc.
- Additional exemptions for EV battery and mobile phone battery manufacturing to boost the domestic supply chain.
Research and Innovation
- ₹20,000 crore allocated to implement private sector-driven research, development, and innovation initiatives announced in the July Budget.
- 10,000 fellowships for technological research in IITs and IISc with enhanced financial support.
- 50,000 Atal Tinkering Labs to be established in government schools over the next five years.
The Finance Minister reiterated the vision of Viksit Bharat, aiming for a developed India with a strong economy, zero poverty, quality education, universal healthcare, and skilled employment opportunities. The Union Budget 2025-26 lays the groundwork for a transformative future, prioritizing skilling, education, MSMEs, agriculture, and tourism. By aligning policies with this broader vision, the government aims to build a resilient, competitive, and inclusive India, unlocking its full potential in the global economy.
With targeted interventions across multiple sectors, the budget sets the stage for robust economic growth and job creation, ensuring that India’s workforce remains equipped to drive the nation toward long-term prosperity.
