The Union Budget 2025 has brought up many poignant questions, especially around agriculture and MSMEs. Deloitte’s economist Rumki Majumdar called it a “budget for inclusive growth,” and it’s easy to see why.
There is a strong emphasis on rural prosperity, farmer welfare, and small businesses. It is quite evident that the government wants to put even more focus on the agricultural sector in India, which is seen as the backbone of the Indian economy.
Let’s dig deeper into it and take a look at what this budget means for farmers, small businesses, and the economy as a whole.
A Boost for Agricultural Practices
Agriculture has always been a key factor in India’s economy. Nearly half the population is engaged in the craft. But let’s be honest, the agricultural sector has gone through a ton of challenges.
This includes both natural and manmade ones. First and foremost, comes unpredictable weather, which drastically impacts yield, and hence has a huge effect on market prices.
One of the ways in which the Union Budget is addressing issues like these comes in the form of Prime Minister Dhan-Dhaanya Krishi Yojana. It is a new scheme designed to transform farming practices and increase productivity.
Under this scheme, farmers will get access to better seeds, advanced irrigation techniques, and modern farming equipment. The goal is to make farming more efficient, less haphazard, and hence, more profitable.
The budget also expands the Kisan Credit Card program, giving farmers easier access to loans at lower interest rates. This can really help out small and marginal farmers who often struggle with cash flow.
But it’s not just about money. The Union budget also focuses on building infrastructure. Cold storage facilities, better transportation networks, and improved market linkages are all part of the plan.
MSMEs: The Growth Engine Gets Even Better
If agriculture is the engine of India’s economy, then MSMEs (Micro, Small, and Medium Enterprises) are the tires. They contribute nearly 30% to the GDP and employ over 110 million people.
And yet, MSMEs are also facing a lot of challenges. Things like limited access to credit, outdated technology, and stiff competition are bogging them down. The Union Budget 2025 has made some interesting proposals for these.
Here they are:
- A renewed focus on credit availability: The government is planning to expand collateral-free loans for MSMEs. It will be much easier for small businesses to get the capital they need. Startups will benefit from this a lot.
- Technology: A lot of MSMEs fall behind because they can’t adapt to the changing times. That’s why the government is allocating some funds for digital transformation initiatives. With this, Indian MSMEs can also get access to top-notch tools and platforms
Rural Prosperity: Beyond Farming
While agriculture and MSMEs are the main stars, the budget also looks at broader rural development. The development plan has envisioned better roads, healthcare facilities, and educational infrastructure.
The budget also emphasizes sustainable practices like organic farming and renewable energy projects. The idea is to create a holistic ecosystem for the development of rural India.
Challenges Ahead: Execution is Key
The budget really has some promising ideas. But the real test lies in the future, that is, the execution. As we have seen from history, plans might be grand, but poor implementation is a curse on most budgets. Will this time be any different? That’s the million-dollar question.
Deloitte’s insights say that the government is aware of these challenges and is working on tighter monitoring mechanisms. Only time will tell if these measures actually lead to real impacts.
A Step in the Right Direction
Overall, the Union Budget 2025 seems to be hitting the hammer in the right areas. Yes, it is ambitious but it’s targeting areas that really need the most attention. Farmers get a more secure agricultural ecosystem and MSMEs get the tools to grow and compete.
As Deloitte’s Rumki Majumdar put it, this is a budget for inclusive growth. It’s not just about numbers and policies—it’s about people.
