Yojana March 2025: Roadmap for Viksit Bharat & Union Budget 2025-26

Yojana March 2025: Roadmap for Viksit Bharat & Union Budget 2025-26

Theme: The March 2025 issue of Yojana outlines the strategic roadmap for India to become a “Viksit Bharat” (Developed Nation) by 2047, emphasizing deregulation, manufacturing, energy security, and fiscal federalism as the primary drivers of this transformation.

Chapter 1: Roadmap for Viksit Bharat @2047

1. Introduction

India’s vision for 2047 goes beyond the liberalization of the 1991 reforms. While 1991 focused on opening the economy, the current phase demands deregulation, manufacturing excellence, energy security, and a tripartite collaboration (Government-Industry-Academia).

2. Strategic Pillars of Growth

A. Deregulation for Economic Efficiency

• Objective: Reduce compliance costs to foster innovation and attract investment.

• Key Initiatives:

  • Past: Ending the ‘Licence Raj’ (1991).

  • Recent: Implementation of GST, IBC, RERA, and decriminalization of 300+ laws.

  • Budget 2025-26: Proposal for a High-Level Committee for Regulatory Reforms.

• Way Forward: Shift to “Trust-based Governance” and encourage states to lead regulatory simplification.

B. Strengthening Manufacturing

• Target: Generate 78.5 lakh non-farm jobs annually until 2036.

• Key Enablers:

  • PLI Schemes: Success in telecom, ACs, and semiconductors.

  • MSME Support: ₹1.38 lakh crore disbursed under Credit Guarantee Scheme; expansion of TReDS.

  • Logistics: Port turnaround times halved (2014–2024); Logistics Performance Index (LPI) rank improved (54th $\rightarrow$ 38th).

• Strategy: Adopt Germany’s Mittelstand model for SMEs and balance labor-intensive sectors (textiles) with high-tech ones (EVs).

C. Energy Security

• Approach: Pragmatic transition to avoid economic instability (learning from Europe’s energy crisis).

• Targets:

  • Nuclear Energy: 100 GW by 2047.

  • Demand Side: Promotion of LiFE (Lifestyle for Environment).

D. Tripartite Compact

• Definition: Synergy between Government (Policy/Skilling), Industry (R&D/Automation), and Academia (Innovation/STEM alignment) to drive sustainable growth.

Chapter 2: Fiscal Federalism in India

Context

The Union Budget 2025-26 strengthens Cooperative Federalism by empowering states financially, guided by the 15th Finance Commission recommendations.

Four Pillars of Fiscal Support to States

Constitutional Provisions

• Article 280: Mandates the Finance Commission to recommend tax distribution.

• Trend: Gross resource transfers to states rose from ₹5.35 lakh crore (2013-14) to ₹25.6 lakh crore (BE 2025-26).

Chapter 3: Union Budget 2025-26: Key Tax Reforms

The ‘PRUDENT’ Approach

The taxation framework is guided by being Proactive, Responsive, User-friendly, Digitally-enabled, Inclusive, and Transparent.

Major Tax Proposals

1. Middle-Class Relief:

   • Restructured slabs reduce liability for income up to ₹12 lakh/annum.

   • Removal of restrictions on self-occupied property taxation.

2. Ease of Compliance:

   • ITR Filing: Deadline for updated returns extended from 24 to 48 months.

   • Decriminalization: No criminal liability for delays in TCS payments.

3. Investment Boost:

   • Startups: Tax benefits extended till April 2030.

   • Shipping: New tonnage tax scheme to promote inland water transport.

4. Fiscal Indicators (FY 2024-25):

   • Tax-to-GDP Ratio: 11.9%

   • Direct Tax-to-GDP: 6.9%

   • Tax Buoyancy: 1.20

Chapter 4: Green Budgeting in India

India’s Climate Commitments (Panchamrit)

• Achievement: Carbon intensity reduced by 36% (from 2005 levels).

• New Target: Reduce carbon intensity by 45% by 2030; 500 GW non-fossil capacity by 2030.

Budgetary Allocations for Green Growth

Chapter 5: India’s Rapid Strides in Solar Energy

Current Landscape

• Global Rank: India is 4th globally in solar energy production.

• Growth Story: Installed capacity surged from 2.8 GW (2014) to 97.86 GW (2024)—a staggering 3,450% increase.

• 2030 Vision: Achieve 300 GW of installed solar capacity.

Strategic Enablers

1. PLI Scheme: ₹24,000 crore allocated to scale domestic Solar PV manufacturing to 65 GW (reducing import dependence).

2. Grid-Scale Storage: Focus on battery storage to ensure round-the-clock power; IIT Madras leading research on cost-efficient batteries.

3. Rural Electrification: Solarizing remote areas and agricultural pumps.

Chapter 6: Gender Budgeting in India

Concept & Structure

Introduced in 2005-06, Gender Budgeting analyzes fiscal policies through a gender lens.

• Part A: Schemes with 100% allocation for women.

• Part B: Schemes with 30-99% allocation for women.

Budget 2025-26 Highlights

• Total Allocation: ₹2.36 lakh crore (7% increase over previous year).

• Economic Impact: Constitutes 4.9% of Total Budget and 0.6% of GDP.

Key Scheme Allocations

• Nutrition: Saksham Anganwadi & POSHAN 2.0 (₹23,048 Cr).

• Health: National Rural Health Mission (₹21,850 Cr).

• Livelihood: DAY-NRLM (₹15,300 Cr) to strengthen Self-Help Groups (SHGs).

• Entrepreneurship: Specific gender allocations added to MSME and Skill Development ministries.

Challenges vs. Solutions

• Challenge: Low Female Labor Force Participation Rate (FLFPR) (~25%) and gender wage gap.

• Solution: Mandatory gender audits, outcome-based monitoring, and “Lakhpati Didi” initiative.

Chapter 7: Combating Violence Against Women

The Challenge

Despite progressive laws (Domestic Violence Act 2005, POSH Act 2013, POCSO 2012), conviction rates remain low (~15% as per NCRB 2022).

Multi-Sectoral Approach

Way Forward

1. Data-Driven Policing: Use NCRB data to identify hotspots.

2. Conflict Zones: Deploy “Women Protection Task Forces” in disaster/conflict areas.

3. Mindset Shift: Campaigns to challenge patriarchal norms and victim-blaming.

Yojana Summary

Yojana Website