India’s Union Budget 2025-26 is seen as a critical factor in achieving the country’s goal of becoming a $5 trillion economy. A pre-budget survey on Wednesday suggests that the budget can be a catalyst for growth, promoting sustainable and inclusive development while ensuring economic equity and efficiency.
India is on track to become the world’s fourth-largest economy by 2026, with most businesses confident in the nation’s growth prospects. The majority of survey respondents forecast a growth rate of 6-6.9% in FY 2025-26, while 22% expect growth to reach 7-7.9%.
Key factors driving growth include ease of doing business reforms, inflation management, higher FDI, strong trade deals, and government incentives. Technological advancements also play a crucial role. Among corporate tax priorities, respondents want simplified GST compliance, reduced corporate tax rates for small and medium enterprises, and more tax incentives for startups and R&D.
The agriculture sector, a cornerstone of India’s economy, remains a focal point. The 2024-25 budget’s Rs 1.52 lakh crore allocation supported significant improvements in productivity and resilience. Experts say the 2025 Budget should further strengthen agriculture by enhancing exports, improving supply chains, and empowering women.
With opportunities to implement transformative reforms, the Union Budget 2025 will be pivotal in shaping India’s economic future and achieving its $5 trillion goal.
