As Union Budget 2025 nears, India stands at a crossroads: will it cement its path to becoming a global economic powerhouse or once again succumb to missed opportunities? Amidst a tepid global growth projection of 3.3% by the IMF, India’s GDP is expected to stabilize at 6.7% over the next two years, per the World Bank. Yet, challenges loom large.
Trump’s new presidency has ushered in a slew of changes. There must be a weight of expectations on India to do something interesting, especially because PM Modi did promise emphatic changes in the run up to the elections. After a not so emphatic win, that expectation has been largely left unmet.
India’s trade deficit, an alarming $21.94 billion in December 2024, highlights vulnerabilities in competitiveness. The upcoming budget could shift the tide, with anticipated direct tax cuts to fuel consumer spending and incentives to bolster local manufacturing. Renewable energy is likely to take center stage, building on the success of the PM Surya Ghar Muft Bijli Yojana, which has already seen 1.28 crore registrations.
India’s Budget is no longer about fiscal planning and excise duty announcements. It’s about defining a legacy. If executed with vision, it could propel India toward unparalleled growth. The question remains: will India rise to the occasion and set a course for long-term prosperity?
