Sat Feb 01 17:34:37 UTC 2025: ## India’s Union Budget 2025-26 Focuses on Financial Sector Reform and Ease of Doing Business
**Mumbai, February 2, 2025** – Union Finance Minister Nirmala Sitharaman unveiled India’s Union Budget 2025-26 on Saturday, prioritizing financial sector reforms aimed at boosting ease of doing business, attracting investment, and streamlining regulations. Key highlights include a significant push for technological advancement in the Banking, Financial Services and Insurance (BFSI) sector, with ₹500 crore allocated for an AI center of excellence and investment in digital infrastructure for global trade finance.
The budget proposes a “light-touch regulatory framework” based on principles and trust. A High-Level Committee for Regulatory Reforms will review all non-financial sector regulations, aiming to streamline processes and improve efficiency within a year. State governments will be urged to adopt these recommendations. To further promote competition, an Investment Friendliness Index of States will be launched.
The government also plans to decriminalize over 100 provisions in various laws through the upcoming Jan Vishwas Bill 2.0. A new mechanism under the Financial Stability and Development Council (FSDC) will evaluate the impact of existing financial regulations and suggest improvements.
Industry experts reacted positively to the budget. Varun Khullar of LeadSquared highlighted the positive impact on the BFSI sector, anticipating improved operational efficiency and greater financial accessibility. Ajay Bhargava of Khaitan & Co praised the focus on simplifying India’s legal framework through the decriminalization efforts, emphasizing the benefits for MSMEs. The budget is expected to significantly impact India’s economic landscape by promoting technological advancement, easing regulatory burdens, and fostering a more investor-friendly environment.
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