Sat Feb 01 15:32:43 UTC 2025: ## India’s Union Budget 2025-26: A “Progressive” Boost for Middle Class and Job Creation

**New Delhi** – India’s Union Budget 2025-26, presented Saturday, has been lauded as a landmark achievement, particularly for its significant tax relief for the middle class and its focus on job creation. Amitabh Kant, India’s G20 Sherpa and former NITI Aayog CEO, described the income tax benefits—exempting annual incomes up to ₹12 lakh—as the most substantial relief for the middle class in Indian history.

Finance Minister Nirmala Sitharaman’s eighth budget outlines a plan for next-generation reforms, including a National Manufacturing Mission to bolster the “Make in India” initiative and integrate the Indian economy with global supply chains. The budget emphasizes growth and job creation, particularly within labor-intensive sectors.

Kant highlighted the budget’s focus on manufacturing and job creation, stating that it promotes consumption-driven economic growth. He praised the government’s fiscal responsibility, with a projected fiscal deficit reduction from 4.8% to 4.4%.

Significant investments are earmarked for labor-intensive sectors such as tourism, footwear, leather, and toys, along with support for 100 aspirational districts in the agricultural sector. Kant emphasized the potential of these sectors to generate numerous direct and indirect jobs, citing tourism’s potential for creating 11 indirect jobs for every direct job.

The budget also includes initiatives to enhance the competitiveness of the footwear and leather industries and establish India as a global toy hub. Further support is aimed at bolstering the manufacturing sector to provide better-paying jobs and reduce reliance on low-wage agricultural employment. This will be achieved through credit guarantees for startups and MSMEs.

A strong emphasis on technology and innovation is evident in the budget’s allocation of ₹20,000 crore for innovation, including ₹10,000 crore each for startups and deep tech. Furthermore, a clean tech mission focusing on solar, fuel cells, and battery manufacturing is included. The budget also highlights investments in AI, including a new Centre of Excellence in AI for education. The government aims to leverage these investments to accelerate India’s technological advancement and establish itself as a global leader in emerging technologies. This includes a national framework for Global Capability Centres (GCCs) and a deep tech Fund of Funds.

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