Sat Feb 01 11:03:25 UTC 2025: ## Union Budget 2025-26: Historic Tax Relief and Focus on Job Creation Drive Praise

**New Delhi** – India’s Union Budget 2025-26, presented Saturday, has been lauded as a landmark achievement, particularly for its significant tax benefits for the middle class and its emphasis on job creation through investment in labor-intensive sectors.

Amitabh Kant, India’s G20 Sherpa and former NITI Aayog CEO, hailed the budget as the most substantial relief package for the middle class in Indian history. The budget exempts annual income up to ₹12 lakh from income tax, a move that significantly boosts disposable income and consumer demand. Kant praised the government’s fiscally responsible approach, noting that the projected fiscal deficit is being reduced.

The budget’s focus is on growth and job creation, with a strong emphasis on manufacturing and labor-intensive sectors like tourism, footwear, leather, and toys. A new National Manufacturing Mission aims to bolster the “Make in India” initiative and integrate the Indian economy into global supply chains. Specific schemes are targeting the footwear and leather industries, and a plan to establish India as a global toy hub is also underway. Kant highlighted the potential for substantial job creation in these sectors, emphasizing the multiplier effect of jobs created in tourism, for example.

Further bolstering job creation, the budget includes significant investment in 100 aspirational districts in the agricultural sector, providing cutting-edge technology, storage solutions, and credit access. Support for startups and MSMEs is also key, with credit guarantees designed to stimulate growth in these crucial sectors.

Investment in technology and innovation is also prominent. The budget allocates ₹20,000 crore for innovation, including ₹10,000 crore each for startups and deep tech. A clean tech mission focusing on solar, fuel cells, and battery manufacturing is another key component. The establishment of a national framework for Global Capability Centres (GCCs) and a ₹500 crore Centre of Excellence in AI for education further underlines this commitment. Kant noted that these initiatives will propel India’s technological advancement. Finance Minister Nirmala Sitharaman also announced plans for a deep tech fund of funds to support next-generation startups.

In summary, the Union Budget 2025-26 is being hailed as a forward-looking document prioritizing growth, job creation, and technological advancement while ensuring fiscal responsibility. The significant tax relief for the middle class is seen as a key driver of increased consumer spending and overall economic growth.

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