Overall, The Union Budget 2025-26 prioritises driving consumption and improving consumer sentiments, financial inclusion, ease of doing business, and economic expansion—marking a significant step forward for India’s growth story. This budget takes decisive steps toward accelerating economic growth, fostering inclusive development, and boosting household sentiment. The emphasis on increasing spending power for India’s growing middle class will drive consumption and savings, strengthening the economic foundation.
The introduction of credit cards tailored for micro businesses is a game-changer, Easing access to formal credit and empowering small enterprises to scale operations efficiently. Additionally, doubling the DICGC cover for micro and small industries will significantly enhance credit availability, fostering both productivity and employment—critical for economic growth.
The simplification of KYC processes through the revamped central KYC registry is a welcome move that will make financial transactions, account openings, and other essential services more seamless for individuals and businesses alike.
Perhaps one of the most impactful reforms is the increase in the NIL income tax slab to ₹12 lakh. This major tax relief for the middle class will not only ease financial burdens but also provide a significant boost to consumption and savings, further driving economic momentum.
Ketan Doshi is the MD of PayPoint India Network Pvt Ltd, a leading Fintech company. Views expressed above are the author’s own.
Author: Ketan Doshi
