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Ahead of the highly anticipated Union Budget 2025 presentation, Union Finance Minister Nirmala Sitharaman, accompanied by Minister of State for Finance Pankaj Chaudhary, met President Droupadi Murmu at Rashtrapati Bhavan on Saturday. During the meeting, the Finance Minister was observed discussing the final contours of the Budget proposals with the President.
Following this meeting, Sitharaman is scheduled to attend a Cabinet meeting where the Budget will be ratified before being presented to Parliament. She will be delivering her record 8th consecutive budget speech at 11 am in the Lok Sabha. This Budget is expected to outline the government's fiscal policies, revenue and expenditure proposals, taxation reforms, and a range of other significant announcements, with a focus on driving economic growth and strengthening the country's financial stability.
As per ANI reports, the Economic Survey presented in Parliament on Friday forecasts India's economy to grow between 6.3 per cent and 6.8 per cent for the upcoming financial year, FY26. The survey highlighted the continued strength of the country's economic fundamentals, which are supported by a stable external account, ongoing fiscal consolidation, and robust private consumption.
The survey also stressed that the government is keen on strengthening long-term industrial growth by focusing on critical areas such as research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods. These measures aim to foster greater productivity, innovation, and improve India's global competitiveness in various sectors.
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The Economic Survey noted that food inflation is likely to ease during Q4 of FY25 due to the seasonal decline in vegetable prices and the arrival of the Kharif harvest. A good Rabi crop is also expected to help keep food prices stable in the first half of FY26. However, challenges such as adverse weather conditions and rising international agricultural prices remain potential risks for inflation.
India's foreign exchange reserves are another area of focus, as the survey revealed that they remain robust, covering 90 per cent of external debt and providing an import cover of more than ten months. The reserves increased from USD 616.7 billion in January 2024 to USD 704.9 billion in September 2024, before moderating to USD 634.6 billion by January 3, 2025. The stability in capital flows has been pivotal in supporting the nation's external strength.
The survey further highlighted significant growth in the formal employment sector. Net subscriptions to the Employees' Provident Fund Organisation (EPFO) have more than doubled, increasing from 61 lakh in FY19 to 131 lakh in FY24, marking a notable rise in formal sector employment.
As per ANI, all eyes will be on the Union Budget today, as it will set the direction for the country's economic trajectory in the coming year.
(With inputs from ANI)
