There were high hopes from the just-presented Union budget 2025-26, given the challenges facing the economy. There have been consistent signs of a slowdown in the economy, rising unemployment and persisting high inflation.
The unemployment rate in the last five quarters, according to the Periodic Labour Force Survey (PLFS), has been hovering around 6.5 per cent of the labour force. This broad fact of the economy is often highlighted by the government to demonstrate that there is no immediate crisis in employment generation.
The Finance Minister could have proposed policies addressing India's urgent challenges, emphasizing strategic autonomy through critical technology advancements, improved education systems, and new urban development.
The panel discussion on IMPRI’s 6th Annual Series of Thematic Deliberations and Analysis of Budget 2025-2026 on Cities, Local Governance, and the Union Budget 2025-26. Organized by the Center for Habitat, Urban and Regional Studies (CHURS) at the IMPR, Impact and Policy Research Institute, New Delhi.
The budget doles out tax breaks to the middle class, and hopes that no one would notice that nothing much is being done to boost growth.
The rupee's sharp decline to ₹86.62 against the dollar in Jan 2025 raises concerns due to higher import costs and inflation but may not boost exports due to shifting from price-sensitive to income-sensitive items, amidst global economic challenges and potential geopolitical resolutions affecting the US dollar.
Those risk-averse and unsure how to deploy lump sum received during superannuation would be better off with UPS; others should stick with NPS