Transformative reforms will strengthen India's journey towards Viksit Bharat: Industry experts

New Delhi [India], February 1 : The Union Budget 2025-26 has been hailed as a transformative step towards realizing the vision of 'Viksit Bharat,' with a strong focus on the middle class, MSMEs (Micro, Small and Medium Enterprises), private investments, and employment generation, said the industry body PHD Chamber of Commerce and Industry (PHDCCI) on Saturday.
Hemant Jain, President, PHDCCI, said, "The focus on Middle class and MSMEs will enhance consumption and production segments, boost private investments and create employment opportunities. The focus areas of the Budget include accelerating growth, securing inclusive development, invigorating private sector investments, uplifting household spending, and enhancing spending power of India's rising middle class."
"The key focus areas in the Union Budget including taxation, power, urban development, mining, the financial sector, and regulatory reforms, are major ingredients of development. These areas will drive growth, improve infrastructure, enhance governance, and ensure sustainable development across various sectors", said Jain.
He highlighted that the budget's key focus areas--including taxation, power, urban development, mining, financial sector reforms, and regulatory changes--will serve as major catalysts for growth, infrastructure improvement, and sustainable development.
Sanjiv Puri, President of the Confederation of Indian Industry (CII), emphasized the budget's role in creating economic activity and employment, particularly in agriculture, MSMEs, and export-oriented sectors.
"There is a very clear investment in key areas that are crucial for India's growth, such as human capital development, urban infrastructure, and future-facing technologies," said Puri.
He also praised the government's commitment to climate transition, including its emphasis on nuclear energy, innovation, and ease of doing business.
"A major highlight is the collaboration with states on sectoral interventions and incentivization towards reforms. The next phase of reforms needs to happen at the state level, and this budget has set the stage for that," Puri added.
Chandrajit Banerjee, Director General of CII, stated that the budget aligns with the government's strategy of 'big' and 'bold' initiatives to propel India's progress towards Viksit Bharat.
"A lot of emphasis has been given to boosting consumption spending--not just through income tax cuts but also through targeted measures for labour-intensive sectors and social security for gig workers."
Banerjee pointed out that regulatory reforms, particularly the light-touch framework, will enhance India's attractiveness as an investment destination. He highlighted the impact of power sector reforms, which include an additional 0.5 per cent of GSDP borrowing allowance for states, as a key measure to improve industry competitiveness.
He also welcomed the rationalization of tariffs, the introduction of a new income tax bill, and financial sector regulatory reforms, stating that these steps will drive India's economic expansion.
"Measures to reduce the tax burden on the middle class substantially, such that there is no tax liability on income of upto Rs 12 lakh, from the earlier Rs 7 lakh, will drive consumption. Consumption is the largest constituent of India's GDP, at around 56 per cent, and has seen some sluggishness. These measures will therefore provide a direct boost to growth," he noted.
Joyshree Das Verma, National President of FICCI FLO, praised the government's focus on empowering marginalized communities, particularly women.
"The introduction of term loans for 5 lakh women from SC/ST communities is a commendable step toward financial inclusion, providing critical resources for entrepreneurship."
She also lauded the Saksham Anganwadi and Poshan 2.0 programs for their role in improving nutrition for vulnerable children, mothers, and adolescent girls.
She said, "The scheme for first-time entrepreneurs, especially women, SC/STs, presents immense potential for fostering innovation and economic growth. This budget reflects the government's commitment to building an inclusive, self-reliant India, and at FICCI FLO, we are eager to collaborate in turning these initiatives into impactful successes."
She added, "The Budget also offers strong support for MSMEs, with enhanced credit availability, new credit cards for micro-enterprises, and schemes to foster growth and job creation in labor-intensive sectors like footwear, toys, and food processing."