As India prepares for the Union Budget 2025-26, the PHD Chamber of Commerce and Industry (PHDCCI) provides a critical assessment of the nation’s economic health. The report, “Economy on the Eve of Union Budget 2025-26,” highlights India’s remarkable resilience. While the global economy faces a deceleration—with growth projected to remain below the 2.5% recession threshold—India continues to be a “bright spot,” maintaining an average growth trajectory of approximately 8% over the last few fiscal years.
Resilience Amidst a Shifting Global Economic Scenario
The current global economic scenario is characterised by “uneven growth,” geopolitical tensions, and fragmented trade policies. Despite these external headwinds, the PHDCCI report notes that India’s domestic fundamentals remain robust. Strong external accounts, a contained current account deficit (CAD) of 1.2%, and calibrated fiscal consolidation have shielded the domestic market from international shocks. The rebound in the agriculture sector, projected to grow at 3.8% in FY25, further strengthens the foundation for rural demand and private consumption.
Strategic Expectations from Union Budget 2025-26
The upcoming Union Budget 2025-26 is viewed as a transformative catalyst to propel India toward its Viksit Bharat @2047 vision. Industry experts at PHDCCI anticipate a budget that prioritizes “GYAN”—Garib (Poor), Youth, Annadata (Farmer), and Nari (Women). Strategic focus areas include:
- Infrastructure Scaling: Increasing Gross Fixed Capital Formation (GFCF) to support world-class logistics.
- MSME Empowerment: Doubling investment and turnover limits to enhance credit access and global competitiveness.
- Inflation Management: Leveraging technological advancements in agriculture to stabilize food prices against volatile global trends.
Conclusion: A Decade of Transformation
The report concludes that India is entering a phase of self-sustained growth. By fostering an investment-friendly climate and integrating deeper into global value chains, India is not just observing the global economy but actively shaping its future. The Union Budget 2025-26 will be the decisive fuel for this journey, ensuring that the nation remains the fastest-growing major economy in the world.