Union Budget 2025 to act as catalyst for India’s $5 trillion economy goal

New Delhi: India’s goal of becoming a $5 trillion economy calls for policies that promote sustainable and inclusive growth and the Union Budget 2025-26 can act as a catalyst for growth while ensuring equity and efficiency in the economy, a pre-budget survey showed on Wednesday.

As India prepares for the Budget, the economic outlook remains positive, reflecting a shared confidence among businesses in the nation’s growth trajectory.

Grant Thornton Bharat’s pre-budget survey showed that India is on track to become the fourth-largest global economy by 2026.

The majority of survey respondents expect economic growth between 6-6.9 per cent in FY 2025-26, while 22 per cent anticipate a stronger growth rate of 7-7.9 per cent.

Significant growth drivers include ease of doing business reforms (68 per cent), inflation and monetary policy management (57 per cent), increase in FDI and strong trade agreements with major global economies (54 per cent), government incentives and subsidies to boost domestic consumption (51 per cent), and technological advancements (49 per cent).

Among corporate tax priorities, the Budget should streamline GST compliance procedures (44 per cent), reduce corporate tax rates for small and medium enterprises (30 per cent), enhanced measures for resolving tax disputes (15 per cent), introduction of more tax incentives for startups (14 per cent), and introduction of new tax incentives for research and development (13 per cent).

The survey highlighted key industries that will be the growth drivers, including agriculture and food processing, automotive, consumer and retail, healthcare and pharmaceuticals, technology, financial services, real estate, and energy and renewables.

The agriculture sector is a cornerstone of India’s economic growth. The previous Union Budget 2024-25, with a Rs 1.52 lakh crore allocation towards the sector, made significant strides in productivity, research, and resilience.

“To establish India as a global leader in agriculture, the upcoming budget will need to focus on several key areas, such as streamlining exports, improving supply chains, expanding access to credit, empowering women in agriculture and promoting sustainable practices,” said the report.

The Union Budget 2025 presents an opportunity to implement transformative reforms across industries. Strengthening fiscal policies, incentivising innovation, and improving regulatory efficiency will be crucial for sustained economic growth, the report emphasised.

–IANS