India’s goal of becoming a $5 trillion economy hinges on policies promoting sustainable and inclusive growth, and the Union Budget 2025-26 is poised to act as a catalyst for such progress, according to a pre-budget survey released on Wednesday.
As India prepares for the budget, the economic outlook remains optimistic, reflecting a shared confidence among businesses in the nation’s growth trajectory.
Grant Thornton Bharat’s pre-budget survey indicates that India is on track to become the fourth-largest global economy by 2026. The majority of survey respondents anticipate economic growth between 6-6.9% in FY 2025-26, while 22% expect a stronger growth rate of 7-7.9%.
Key growth drivers identified include:
- Ease of doing business reforms (68%)
- Inflation and monetary policy management (57%)
- Increase in FDI and strong trade agreements with major global economies (54%)
- Government incentives and subsidies to boost domestic consumption (51%)
- Technological advancements (49%)
Corporate tax priorities for the budget include:
- Streamlining GST compliance procedures (44%)
- Reducing corporate tax rates for small and medium enterprises (30%)
- Enhanced measures for resolving tax disputes (15%)
- Introduction of more tax incentives for startups (14%)
- Introduction of new tax incentives for research and development (13%)
The survey also highlighted key industries poised to drive growth, including agriculture and food processing, automotive, consumer and retail, healthcare and pharmaceuticals, technology, financial services, real estate, and energy and renewables.
The agriculture sector remains a cornerstone of India’s economic growth. The previous Union Budget 2024-25 allocated $19.51 billion to the sector, leading to significant strides in productivity, research, and resilience.
“To establish India as a global leader in agriculture, the upcoming budget will need to focus on several key areas, such as streamlining exports, improving supply chains, expanding access to credit, empowering women in agriculture, and promoting sustainable practices,” the report stated.
The Union Budget 2025 presents a golden opportunity to implement transformative reforms across industries. Strengthening fiscal policies, incentivizing innovation, and improving regulatory efficiency will be crucial for sustained economic growth, the report emphasized.
