Union Budget: PM Modi govt on road to reform towards ‘Viksit Bharat’ goal

New Delhi, Jan 25 (IANS) The Union Budgets under Prime Minister Narendra Modi in the last 11 years have become a vehicle of transformation and policy reforms, ensuring ease of doing business for industries, including MSMEs and startups, and more purchasing power for the common people.

In the first Union Budget 2014-15 under the PM Modi government, the personal income tax exemption limit was raised from Rs 2 lakh to Rs 2.5 lakh (and to Rs 3 lakh for senior citizens). Additionally, the investment limit under Section 80C was increased from Rs 1 lakh to Rs 1.5 lakh.

Notably, in a move to attract global capital and modernise infrastructure, the FDI cap in the defence and insurance sectors was raised from 26 per cent to 49 per cent.

The government also announced an ambitious plan to develop 100 Smart Cities across the country as satellite towns of larger cities and by modernising existing mid-sized cities, allocating an initial Rs 7,060 crore.

The budget had emphasised the “Pradhan Mantri Gram Sadak Yojana” for rural roads and proposed the development of new airports and facilitating the wide use of the PPP Models.

Fast forward to Union Budget 2025-26, and we can see how the government has not only kept its promises but doubled down on reforms.

The Income Tax Bill, 2025, marks a significant step towards replacing India’s six-decade-old direct tax framework, with the government seeking to balance investor confidence, taxpayer relief, and administrative efficiency with the new law.

The tax policy reforms include those in corporate tax, where a tax rate of 22 per cent was provided to those companies that do not claim specified deductions and exemptions and a 15 per cent tax rate for new manufacturing companies for a specified period, and in individual taxation, where the new tax regime provides for liberal slabs and lower rates with increased rebates.

The individuals earning up to Rs 12 lakh (Rs 12.75 lakh effectively for salaried taxpayers, due to standard deduction of Rs 75,000) are not required to pay tax by these slabs, rates and rebates — thus boosting savings, consumption, and disposable income of salaried households.

Moreover, Rs 1.7 crore farmers are set to benefit under PM Dhan-Dhaanya Krishi Yojana, covering 100 low-productivity districts, along with Mission Aatmanirbharta in Pulses and higher KCC loans up to Rs 5 lakh.

The credit guarantee limit was doubled from Rs 5 crore to Rs 10 crore, the National Manufacturing Mission was launched, and major customs duty exemptions were announced in the last Budget to strengthen the ‘Make in India’ initiative and job creation.

Moreover, Rs 20,000 crore for private R&D, Rs 20,000 crore Nuclear SMR Mission, Rs 500 crore AI Centre for Education, and 50,000 Atal Tinkering Labs to build tech leadership were some other notable announcements in the Budget 2025-26.

“Fiscal deficit to be reduced to 4.4 per cent in FY26, FDI in insurance raised to 100 per cent, Jan Vishwas 2.0 to decriminalise laws, and major ease-of-doing-business tax and compliance reforms,” show that the PM Modi government is firmly on the road to reform towards Viksit Bharat at 2047.

–IANS

na/dpb