Budget 2025-26 : Should it boost prospect of 'transition' of a developing nation to a developed ?

Budget 2025-26 : Should it boost prospect of 'transition' of a developing nation to a developed

The liberalisation of Indian economy thankfully started in 1991 when P V Narasimha Rao was the Prime Minister and Dr Manmohan Singh was his handpicked Finance Minister.

Dr Singh breathed last in December precipitating the debate time and again about his path-breaking Budget and how Congress has mistreated Narasimha Rao and between 2004 and 2014 remote controlled Manmohan Singh. Elections are round the corner in Delhi. We have another so-called crucial round of polling in Bihar later this year. In early 2026, polls are due in West Bengal, Assam, Kerala and Tamil Nadu.

So it goes without stating that with so many elections sooner or later; the economic wisdom often take back seat. Hence in the season of claptrap of freebies and caste-based reservation or special provisions for religious minorities or so on; there is actually need for a few harsh steps - the next generation of reforms.  

Notwithstanding whatever happening around us, the time moves fast and in its own speed. Thus we are already into the 25th year of the new century. That is a quarter of the 21st century is gone. 

Time is running out. India too is impatient for enhanced pace of developments. About 20 to 30 years back, people spoke about three elements vis-a-vis the process of Budget making - Liberalisation, Globalisation and Democratisation. 

While these remain powerhouses of change in our times; we have also entered an era where technological advancement has been unprecedented. Thus Crypto currency is something being spoken about. 

It is believed the success of  the Budget 2025-26 shall be actually measured by the yardstick -- how effectively the proposals and policy announcements by Finance Minister Nirmala Sitharaman will help India achieve 'transition' from a developing nation to a Developed nation. 

Prime Minister Narendra Modi has kept his spirit up but a politically sensitive politician has to unleash his strategies for reform. The withdrawal of Farm laws during Modi 2.0 showed that he was not really ready enough to take certain political risks.   

To a question whether his 'risk' taking ability is increasing by the day; the Prime Minister threw up rather a surprising response --- "I think my risk-taking capacity has not been utilised fully. Very less...

"My risk-taking capacity is perhaps multiple times more". We need to see these when it comes to reform strategies. 

In 1993 the magazine 'The Economist' did a story on India under the title "Asia's big laggard'. Modi and FM Sitharaman should keep it in mind such articles do not come out in 2025 or 2026. 

Frequent state assembly polls are not required and hence there is a need for One Nation One Election. He should go ahead with the move for posterity to remember him as a leader who had brain, will power, a good heart and the real SPINAL CORD. 

In more ways than one the Modi era is judged for the qualities of the works. But without necessary economic reforms, even this era will not be really qualified to be given the title of 'an age of a great leader and great events".  

Mistrust of government and political system as institution(s)  brood over the nation. And a Prime Minister is not solely to be blamed for this. 

The national character is not yet pro-hard work even as aspirational India is in hurry.  Down the line, still people think ... the Jugadu culture (nepotism) should help them. Politically, the political parties are still under pressure for freebies and they get rewarded too. 

There is a inherent danger in it.  

The economic liberalisation came in 1991 but still an idea is pushed that the underprivileged people are always left out of it. Multiple welfare measures by the Modi Government with effective steps so that the money actually reach the beneficiaries have also not able to convince people otherwise. 

There is still the need of a mixed policy approach - a market economy with social conscious. 

If one takes a closer look on policy front, the Modi Govt since the time Late Arun Jaitley was the Finance Minister has taken measures to ensure that the benefits reach people who were 'conventionally' out of the system of reform strategies. 

The share of the states also increased. Thanks to higher growth rates, the Modi Govt was able to deliver 'resources' to the poor and rural Bharat instead of slogans of the Congress era. 

The challenge is to take these further. 

Some expectations:

To reduce litigation, Finance Minister Nirmala Sitharaman in the upcoming Budget may announce an Amnesty Scheme for customs to foster ease of doing business.

## More steps for enforcing financial discipline. 

%% CII has suggested that all regulatory approvals - central, state and local levels - must mandatorily be provided only through the National Single Window System (NSWS), which will bring greater  transparency and speed in the processes. 

** Govt should continue focusing on the Atal Mission for Rejuvenation and Urban Transformation (AMRUT); partnerships that drive sustainable infrastructure projects. 

ends