The Union Budget 2025-26 is a bold manifesto Finance Minister Nirmala Sitharaman, highlighting India’s aspiration to solidify its position as a global economic powerhouse. With a strong emphasis on strategic investments in manufacturing, education, skilling, and inclusion, the budget lays the foundation for a future-ready workforce and sustainable economic growth, aligning with the vision of Amrit Kaal.
Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26, marking the first full budget under Modi 3.0. With an eye on achieving “Viksit Bharat” by 2047, the budget outlines a growth forecast of 6.4% for FY25 and 6.3-6.8% for FY26, focusing on key reforms to drive the country’s economic progress.
Zero tax for income up to Rs 12 lakh under the new regime will benefit a large swathe of taxpayers. Revised slabs range from 5% for income between Rs 4 and 8 lakh, up to 30% for those earning above Rs 24 lakh. This translates to substantial savings, with an Rs 18 lakh earner saving Rs 70,000 and a Rs 12 lakh earner saving Rs 80,000.
FM announced the following new income tax slabs under the new regime:
- Rs 4 to 8 lakh: 5%
- Rs 8 to 12 lakh: 10%
- Rs 12 to 16 lakh: 15%
- Rs 16 to 20 lakh: 20%
- Rs 20 to 24 lakh: 25%
- Above Rs 24 lakh: 30%
According to Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, “the establishment of five National Centres of Excellence for Skilling will help bridge the skill gap, increase employability, and prepare youth for emerging industries, while global skilling partnerships will enable Indian talent to access international opportunities, further positioning India as a leading provider of skilled professionals worldwide.”
Experts are of the view that the primary goal of these National Centres of Excellence (NCEs) is to provide cutting-edge skill development training that aligns with industry requirements. These centres aim to foster innovation in vocational education, focusing on high-demand sectors such as manufacturing, technology, healthcare, and services. By leveraging state-of-the-art infrastructure and industry collaboration, these centres will equip the workforce with relevant, future-ready skills.
Sonica Aron, Founder and CEO Marching Sheep is of the view that, “this would strengthen Make for India, Make for the World, in turn strengthening global competitiveness.”
The budget further bifurcated on how establishment of five National Centres of Excellence for Skilling will help bridge the skill gap, increase employability, and prepare youth for emerging industries, while global skilling partnerships will enable Indian talent to access international opportunities, further positioning India as a leading provider of skilled professionals worldwide.
Experts are of the view that a significant push has been given to AI-driven education, with the creation of three Centres of Excellence on AI for Education, backed by an ₹500 crore outlay, fostering cutting-edge innovations in digital learning and AI-integrated pedagogy
And lastly, these centres will further be focusing on job creation, innovation, and inclusivity. Hence, this budget will not only uplift household sentiment and enhance the spending power of India’s rising middle class but also position India as a global leader in human capital development, high-tech manufacturing, and digital transformation, firmly aligning with the vision of Viksit Bharat—a self-reliant, developed India ready to lead in the global economy.
