The Union Budget 2025-26 is expected to play a role in advancing India’s aim of becoming a $5 trillion economy by promoting policies focused on growth, equity, and efficiency. A pre-budget survey released on Wednesday indicated that economic confidence remains steady among businesses as India prepares for the upcoming budget.
According to the Grant Thornton Bharat survey, India is projected to become the fourth-largest global economy by 2026. Respondents shared an optimistic outlook, with most expecting GDP growth between 6 and 6.9 percent in FY 2025-26, while 22 percent anticipated a higher growth rate of 7 to 7.9 percent.
The survey identified several factors influencing economic growth, including ease of doing business reforms, inflation and monetary policy management, increased foreign direct investment, trade agreements with major global economies, government incentives to boost domestic consumption, and technological advancements.
Corporate tax priorities highlighted in the survey included the need for streamlined GST compliance, reduced corporate tax rates for small and medium enterprises, improved mechanisms for tax dispute resolution, additional tax incentives for startups, and new incentives for research and development.
Key industries expected to contribute to economic growth include agriculture and food processing, automotive, consumer and retail, healthcare and pharmaceuticals, technology, financial services, real estate, and energy and renewables.
The agriculture sector has been a focus of economic planning. In the previous Union Budget 2024-25, an allocation of Rs 1.52 lakh crore was made towards improving productivity, research, and resilience in the sector. The upcoming budget is expected to address aspects such as streamlining exports, improving supply chains, expanding access to credit, supporting women in agriculture, and promoting sustainable practices.
The report suggested that the budget provides an opportunity to introduce policy changes aimed at fiscal stability, regulatory efficiency, and innovation.
