India’s economy is growing steadily despite global uncertainties, with the Union Budget 2025 reinforcing the country’s commitment to inclusive growth, fiscal discipline, and economic competitiveness. The budget prioritizes infrastructure development, manufacturing, agriculture, and entrepreneurship, laying the foundation for long-term expansion. Key highlights of the budget include increased public investments, skilling programs, and ease of doing business reforms, which will benefit various industries, including MSMEs, startups, and large-scale manufacturing.
The budget focuses on four key pillars: the poor, youth, farmers, and women, with increased credit availability to drive entrepreneurship and job creation. The MSME credit guarantee limit has been doubled to Rs 10 crore, and microcredit card limits have been increased to Rs 5 lakh, enhancing liquidity and boosting consumption. The agriculture and food processing sectors have also received a significant boost, with a six-year pulses mission and an expansion of Kisan Credit Card limits from Rs 3 lakh to Rs 5 lakh.
Infrastructure investments have been prioritized, with a Rs 1.5 lakh crore interest-free loan for state capital expenditure, which will enhance logistics and distribution networks, benefiting the FMCG sector, particularly in tier-2 and tier-3 cities. The tax-free income threshold has been increased to Rs 12 lakh, leaving more disposable income in consumers’ hands and driving higher discretionary spending.
Overall, the budget is expected to have a positive impact on the FMCG sector, with increased credit availability, improved infrastructure, and higher disposable incomes driving growth. The budget’s focus on inclusive growth, fiscal discipline, and economic competitiveness is expected to strengthen India’s economic landscape and drive long-term expansion. With its strong push for infrastructure, manufacturing, and entrepreneurship, the budget has laid a solid foundation for India’s continued growth and development.