The Finance Minister has deftly achieved the rare feat of balancing the three key priorities of the Budget. She has bolstered consumption and provided relief to the middle class through taxation measures while simultaneously increasing capital expenditure — all without straying from the path of fiscal discipline.

In the past several years, there has been a growing demand for middle-class relief — not just as a political necessity but also a crucial economic strategy, given that consumption drives economic growth. We should also remember that such a step is also a cornerstone of the vision for Viksit Bharat.

At the same time, sustainable high growth requires significant investment in the future. This explains why the Finance Minister has consistently prioritised capital expenditure, with allocations rising year after year.

The upcoming fiscal year will be no exception, with effective capital expenditure soaring from ₹6.4 lakh crore in 2020-21 to ₹15.5 lakh crore in 2025-26 — an extraordinary demonstration of economic and political resolve.

Without doubt, the government has remained committed to fiscal consolidation, a critical factor for India’s economic health and well-being.

Despite addressing multiple demands within finite resources, the fiscal deficit for 2025-26 has been set at 4.4 per cent of GDP, down from 4.8 per cent this year — an achievement worthy of recognition.

In addition, the Finance Minister has acknowledged the need for regulatory reforms to ensure the economy remains dynamic. The formation of a High-Level Committee for Regulatory Reforms — tasked with reviewing non-financial sector regulations, certifications, licences and permissions — alongside the new Jan Vishwas Bill, marks a significant step forward.

AI, education

As the world evolves at a fast clip, especially with the rise of artificial intelligence, India must stay ahead in order to sustain its growth momentum. The establishment of a new centre of excellence for AI in education, along with expanding capacity at IITs, is a forward-thinking move.

It is also a segment where there is a great scope for public-private partnerships, especially when it comes to making our own large language models for domestic as well as global use.

Now, the proposed National Manufacturing Mission, which strengthens the ‘Make in India’ initiative, is another notable step announced in the Budget.

It is obvious that onshoring manufacturing is now essential not only for economic growth but also for India’s broader strategic interests. Moreover, the continued focus on clean-tech manufacturing — particularly in developing domestic capabilities for photovoltaic cells, electric vehicle batteries and related technologies — is crucial for achieving self-reliance in this phenomenally critical sector.

We know only too well that a Budget encompasses many moving parts but what unites them is the drive to propel the nation forward. More than anything, that ambition — the vision of Viksit Bharat — resonates through the Budget’s announcements.

Managing the vast expectations of a nation as diverse as ours is always a huge challenge, and yet she has once again demonstrated how it can be done without compromising the overarching goals of economic growth and development.

It is obvious that onshoring manufacturing is now essential not only for economic growth but also for India’s broader strategic interests.

The writer is Chairman, RPSG Group

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