Executive Summary

The dominant theme in the Union Budget 2025-26 has been to provide a significant boost to consumption in the Indian economy through personal income tax cuts and higher disposable incomes of the middle class. However, Acuité Research also believes that the budget has mooted a slew of measures to expedite private sector investments, a critical element towards Viksit Bharat 2027. While maintaining the thrust on infrastructure development, it also continued to provide increasing support to the MSME and the agricultural sector. Last but not least, the commitment to fiscal consolidation has been maintained with the fiscal deficit pegged at 4.8% (RE) and 4.4% (BE) for FY25 and FY26 respectively.

Suman Chowdhury
Chief Economist & Head of Research, Acuité Ratings & Research