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Opinion: Union Budget 2025 — 'Modinomics' At Its Best

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on Saturday, is yet another milestone in India’s economic transformation under Prime Minister Narendra Modi. A reflection of his dynamic governance and bold economic vision, this Budget is not just a financial exercise — it is a blueprint for a ‘Viksit Bharat (Developed India)’. The Budget strengthens the foundations of infrastructure, eases the tax burden on the middle class, revitalises agriculture, and reaffirms the commitment to inclusive and sustainable growth.

ALSO READ | Modi’s ‘Middle-Class Budget’ — Why Govt Took Rs 1 Lakh Crore Revenue Hit For Tax Bonanza

Infrastructure — The Engine Of Growth

A nation’s progress is measured by the quality of its infrastructure, and the Modi government has set new benchmarks in this domain. The Budget has allocated a record Rs 11.11 lakh crore for capital investment — tripling the allocation since 2019. This is a bold, decisive push that will drive long-term economic growth, create employment, and enhance the ease of doing business.

From expressways to economic corridors, from rail modernisation to smart urban centres, the government’s infrastructure push is unparalleled. The continued expansion of the PM Gati Shakti initiative will integrate logistics, reduce transportation costs, and ensure seamless connectivity across the country. The focus on renewable energy infrastructure, especially green hydrogen and solar power corridors, reaffirms India’s commitment to sustainable growth. By 2047, as India celebrates its centenary of Independence, this infrastructure revolution will position the country as a global leader in logistics, manufacturing and urban planning.

Relief For Middle Class

For years, the middle class has been the backbone of India’s consumption-driven economy, and this Budget finally delivers much-awaited relief to them. Finance Minister Nirmala Sitharaman announced a significant overhaul of the personal income tax structure by elevating the nil personal income tax slab to Rs 12 lakh per annum, exempting individuals earning up to this amount from paying any income tax.

The government’s approach is clear — empower individuals with more purchasing power, stimulate consumption, and drive economic growth.

This tax relief is a strategic move that will have a multiplier effect on economic activity. As households spend more, demand will rise, benefiting businesses and boosting the overall GDP. The government's confidence in ‘Modinomics’ — the philosophy that economic dynamism stems from people’s empowerment — is evident in this decision.

ALSO READ | Making Healthcare Accessible & Affordable: What Budget 2025 Gets Right On Health & What It ‘Misses’  

Empowering Farmers, Ensuring Food Security

Agriculture remains the heart of India’s economic and social fabric. The government has launched a national mission to enhance crop productivity, benefiting 17 million farmers. By providing access to high-yield seeds, modern irrigation techniques, and climate-resilient farming methods, the initiative aims to increase both output and incomes.

The Budget also raises the credit limit for subsidised loans to farmers, making capital more accessible to them. This, coupled with enhanced investment in cold storage chains and food processing units, will ensure that India’s agricultural sector remains globally competitive. By making farming more profitable and sustainable, the Modi government continues its focus on the ‘annadata’.

Manufacturing And Exports

As India seeks to become a $5 trillion economy, manufacturing and exports play a crucial role. The Budget reinforces India’s ambitions to be a global hub for manufacturing by extending the production-linked incentive (PLI) schemes across sectors such as electronics, semiconductors, and green technologies.

With a push for ‘Make in India’ and export incentives, the government is creating an ecosystem that encourages domestic production, while attracting global supply chains. Special focus has been placed on increasing defence exports, promoting automobile and EV manufacturing, and boosting pharmaceutical production — all aimed at making India a manufacturing powerhouse.

Healthcare Push

The Modi government’s commitment to healthcare is underscored by key announcements in this Budget. The exemption of cancer drugs from basic customs duty is a game-changer, making critical medicines more affordable. Additionally, the establishment of cancer daycare centres across the country will ensure high-quality treatment reaches every corner of India.

Formalisation of gig-economy workers is another progressive step, and will ensure they receive health benefits and social security. As the workforce evolves with changing economic patterns, the government is working to ensure no segment is left behind.

Towards A Green Future

As the world moves towards a greener future, India is taking the lead. The Budget’s focus on renewable energy, including a ‘Nuclear Energy Mission’ to achieve 100 GW of nuclear power by 2047, is a testament to the government’s commitment to this pursuit. Investments in green hydrogen, solar parks, and wind energy projects will position India as a key player in the global clean energy transition.

ALSO READ | Budget 2025: Growth Vs Prudence — Finding The Balance

‘Modinomics’ Playbook In Action

The Union Budget 2025-26 is not just about numbers. It is about vision, execution, and impact. It reflects PM Modi’s governance philosophy — build robust infrastructure, empower the middle class, uplift the poor, and position India as a global economic leader.

From tax reforms to rural prosperity, from manufacturing dominance to sustainability, the Budget embodies the principles of ‘Modinomics’ — bold decision-making, long-term planning, and people-centric governance. 

The writer is a senior multimedia journalist.

[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.]

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