The budget heavily emphasizes building domestic capabilities in critical and frontier sectors to reduce import dependency and establish India as a global manufacturing hub. Key initiatives like BioPharma Shakti, ISM 2.0, and schemes for container and rare earth manufacturing underscore this strategic push towards 'Atmanirbharata' (self-reliance).
A substantial increase in public capital expenditure to 12.2 lakh crores continues the government's strategy of using infrastructure development as a primary engine for economic growth. The plan includes the development of seven high-speed rail corridors and a coastal cargo promotion scheme to improve logistics and connectivity.
Despite ambitious spending plans, the budget adheres to a path of fiscal consolidation, with clear targets for reducing the fiscal deficit and the overall debt-to-GDP ratio. The government highlights its track record of fiscal discipline as a foundation for stable, sustained growth and moderate inflation.
The budget recognizes the role of Small and Medium Enterprises (SMEs) as a vital growth engine by introducing targeted financial support. A new 10,000 crore SME growth fund and a top-up for the Self-Reliant India Fund are designed to provide equity and risk capital to help micro and small enterprises scale up into 'future champions'.
The budget proposes several direct and indirect tax reforms aimed at simplifying the tax structure and improving the business environment. Key measures include a new Income Tax Act, reduced MAT rates, increased safe harbor thresholds for IT services, and the complete removal of the value cap on courier exports.
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