Meaning of the Union Budget

The Union Budget is the annual financial statement of the Government of India, presented each year in Parliament by the Finance Minister on 1st February of every year for the upcoming financial year. It outlines the government’s estimated revenue and expenditure for the upcoming financial year, which runs from April 1 to March 31. It is typically presented in February so it can be approved before the new financial year begins.

It includes:

• Estimates of revenues (like taxes, dividends, etc.)
• Estimates of Expenditure (like infrastructure, subsidies, welfare schemes)
• Deficit projections, borrowings, and fiscal policy goals.
• The Union Budget also reflects the government's economic vision, policy priorities, and plans for development and welfare. 

Interesting facts about Union Budget

 

1. First Budget: Presented by James Wilson in 1860, a Scottish economist, after the 1857 Revolt.
2. First Union Budget of Independent India: Presented by R.K. Shanmukham Chetty on November 26, 1947.
3. Shortest Budget Speech: By Hirubhai M. Patel in 1977 — just around 800 words.
4. Longest Budget Speech: By Nirmala Sitharaman in 2020, clocking in at 2 hours 42 minutes — she had to cut it short due to exhaustion!
5. Zero Budget Year: In 1952–53, revenue and expenditure were exactly balanced.
6. Railway Budget: Presented separately until 2016; it was merged into the Union Budget from 2017 onwards.
7. Paperless Budget: In 2021, for the first time, the Union Budget was completely digital due to COVID-19.
8. First Female Finance Minister: Indira Gandhi (as PM, held FM portfolio in 1970–71).
9. First Full-Time Female FM: Nirmala Sitharaman, presenting her first budget in 2019.
10. Budget Briefcase Replaced: In 2019, Sitharaman ditched the British-style briefcase for a traditional red “bahi-khata” (ledger cloth), symbolizing India’s cultural heritage.
11. Timing Changed: Until 1999, budgets were presented at 5 PM (colonial legacy). Yashwant Sinha shifted it to 11 AM, which is still followed.
12. Finance Ministers who presented maximum budgets include Morarji Desai – 10 Budgets in the Years: 1959–64, 1967–69 (as FM), also interim budgets. Only person to present budgets on his birthday (Feb 29, 1964).
13. P. Chidambaram – 9 Budgets in Years: 1996–97, 1997–98, 2004–08, 2013–14.
14. Nirmala Sitharaman – 8 Budgets (2019–2026). First full-time woman FM to present these many budgets
15. Pranab Mukherjee – 7 Budgets in Years: 1982–84, 2009–12.
16. Yashwant Sinha – 6 Budgets (1990–91, 1998–2002), Manmohan Singh – 6 Budgets (1991–96)

 

Rank	Finance Minister	Number of Budgets	Notable Highlights
1	Morarji Desai	10	Served as FM and later as PM; presented 8 annual and 2 interim budgets.
2	P. Chidambaram	9	Known for the 1997 "Dream Budget".
3	Nirmala Sitharaman	8	First full-time woman FM; presented 8 consecutive budgets from 2019 to 2025.
4	Pranab Mukherjee	7	Served as FM before becoming President.
5	Yashwant Sinha	6	FM during the Vajpayee era.
5	Manmohan Singh	6	Presented the landmark 1991 Liberalization Budget.
5	T. T. Krishnamachari	6	Served as FM in the 1950s and 1960s.

 

Constitutional Provisions for the Union Budget

 

1. Article 112 – Annual Financial Statement: This is the legal basis of the Union Budget. It mandates that the President shall cause to be laid before Parliament a statement of estimated receipts and expenditure for the financial year.
2. Article 113 – Deals with appropriation of funds from the Consolidated Fund of India. No money can be withdrawn without Parliament’s approval.
3. Article 114 – Appropriation Bills : Provides for the passing of Appropriation Bills to authorize the government to withdraw funds from the Consolidated Fund to meet expenditures.
4. Article 116 – Votes on Account, Votes of Credit & Exceptional Grants : Allows Parliament to grant short-term funds (Vote on Account) when the full budget is not passed before the financial year starts.
5. Article 266 – Consolidated Funds and Public Accounts
6. Clause (1): Consolidated Fund : All revenues received by the Government of India, all loans raised by it, and all money received in repayment of loans shall form one consolidated fund to be called the Consolidated Fund of India. This is the main account from which all government expenses are made. No money can be withdrawn without parliamentary approval (appropriation by law).
7. Article 293(1): A State may borrow money within India upon the security of the Consolidated Fund of the State.
8. Clause (2): A State may not, without the consent of the Government of India, raise any loan if it is still indebted to the Centre due to a prior loan or guarantee.
9. Clause (3): The Centre may impose conditions when giving such consent.
10. Clause (4): Any conditions imposed by the Union Government must be followed by the State.

 

Major announcements in the Union Budget 2025-26

Objectives of the Budget

a) accelerate growth, 

b) secure inclusive development, 

c) invigorate private sector investments, 

d) uplift household sentiments, and

e) enhance spending power of India’s rising middle class. 

 

What does a VIKSIT BHARAT mean?  “A country is not just its soil, a country is its people.” 

 

a) zero-poverty;

b) 100% good quality school education;  

c) access to high-quality, affordable, and comprehensive healthcare;

d) hundred per cent skilled labour with meaningful employment;

e) 70% women in economic activities; and

f) farmers making our country the ‘food basket of the world’. 

 

10 Broad Areas to be focussed in the Budget (GYAN - Garib, Youth, Annadata and Nari)

 

1) Spurring Agricultural Growth and Productivity;

2) Building Rural Prosperity and Resilience; 

3) Taking Everyone Together on an Inclusive Growth path;

4) Boosting Manufacturing and Furthering Make in India;

5) Supporting MSMEs;

6) Enabling Employment-led Development;

7) Investing in people, economy and innovation;

8) Securing Energy Supplies;

9) Promoting Exports; and

10) Nurturing Innovation.

 

4 ENGINES OF DEVELOPMENT for this journey of development

 

1. AGRICULTURE

2. MSME

3. INVESTMENT

4. EXPORTS

The fuel: our Reforms 

Our guiding spirit: Inclusivity

And the destination: Viksit Bharat

 

AREAS FOR REFORMS : This Budget aims to initiate transformative reforms across 6 domains in next 5 years. 

1) Taxation

2) Power Sector

3) Urban Development

4) Mining

5) Financial Sector

6) Regulatory Reforms.

 

AGRICULTURE AS THE 1ST ENGINE OF DEVELOPMENT

 

Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts Programme

 

The programme to be launched in partnership with the states, covering 100 districts with low productivity, moderate crop intensity and below-average credit parameters, to benefit 1.7 crore farmers.

 

The Union Finance Minister stated that motivated by the success of the Aspirational Districts Programme, the Government will undertake a ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states. Through the convergence of existing schemes and specialized measures, the programme will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. 

 

The programme aims to enhance agricultural productivity; adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at the panchayat and block level; improve irrigation facilities and facilitate availability of long-term and short-term credit. This programme is likely to help 1.7 crore farmers.

 

Building Rural Prosperity and Resilience

A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states. This will address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity. 

 

The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families. The programme aims in catalyzing enterprise development, employment and financial independence for rural women; accelerating creation of new employment and businesses for young farmers and rural youth; nurturing and modernizing agriculture for productivity improvement and warehousing, especially for marginal and small farmers and diversifying opportunities for landless families. 

 

The global and domestic best practices will be incorporated and appropriate technical and financial assistance will be sought from multilateral development banks. 

 

Aatmanirbharta in Pulses

 

The government will launch a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor.  

 

The Mission will place emphasis on development and commercial availability of climate resilient seeds; enhancing protein content; increasing productivity; improving post-harvest storage and management and assuring remunerative prices to the farmers. Central agencies (NAFED and NCCF) will be ready to procure these 3 pulses, as much as offered during the next 4 years from farmers who register with these agencies and enter into agreements.

NCCF AND NAFED DIFFERENCE

 

Feature	NCCF (National Cooperative Consumers' Federation)	NAFED (National Agricultural Cooperative Marketing Federation)
Full Form	National Cooperative Consumers’ Federation of India	National Agricultural Cooperative Marketing Federation of India
Established	1965	1958
Headquarters	New Delhi	New Delhi
Under Ministry	Ministry of Cooperation	Ministry of Agriculture & Farmers Welfare
Primary Focus	Consumer goods distribution & retail	Agricultural produce marketing & procurement
Key Function	Ensures availability of essential goods to consumers	Helps farmers by procuring and marketing agricultural produce
Target Beneficiaries	Urban and rural consumers	Farmers and agricultural producers
Activities	Wholesale/retail trade in food grains, pulses, etc.	Procurement of pulses, oilseeds, onions, and buffer stock operations
Government Role	Distributes commodities under government schemes	Implements Price Support Scheme (PSS) and Price Stabilization Fund (PSF)
Network	State cooperative federations, consumer stores	Farmer Producer Organizations (FPOs), primary marketing societies
Role in Crises	Supplies essentials during shortages/emergencies	Stabilizes prices by intervening in agriculture markets

 

The Government is implementing the National Mission for Edible Oilseed for achieving atmanirbhrata in edible oils. The Government made concerted efforts and succeeded in achieving near self-sufficiency in pulses. 

 

Farmers responded to the need by increasing the cultivated area by 50 per cent and Government arranged for procurement and remunerative prices. Since then, with rising incomes and better affordability, consumption of pulses has increased significantly. 

 

National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) has been launched on 3rd Oct, 2024 for enhancing the production of key primary oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum, as well as increasing collection and extraction efficiency from secondary sources like Cottonseed, Rice Bran, and Tree Borne Oils. 

 

To ensure the timely availability of quality seeds, the Mission will introduce an online 5-year rolling seed plan through the ‘Seed Authentication, Traceability & Holistic Inventory (SATHI)’ Portal, enabling states to establish advance tie-ups with seed-producing agencies, including cooperatives, Farmer Producer Organizations (FPOs), and government or private seed corporations. 65 new seed hubs and 50 seed storage units will be set up in public sector to improve the seed production infrastructure.

 

The SATHI Portal (Seed Authentication, Traceability, and Holistic Inventory) is a centralized digital platform developed by the Ministry of Agriculture and Farmers’ Welfare, Government of India, in collaboration with the National Informatics Centre (NIC). It aims to digitize and streamline the entire seed supply chain, ensuring quality, transparency, and traceability from seed production to sale.

 

The SATHI Portal was officially launched on April 19, 2023. This initiative aims to digitize the entire seed supply chain, ensuring quality, traceability, and transparency from seed production to distribution.

 

Key Features of the SATHI Portal

 

• Monitors and Covers all stages from seed production, certification, licensing, inventory management, to sales by certified dealers.

• Seed Traceability: Enables tracking of seeds across multiple generations, ensuring authenticity and quality.

• GIS-Based MIS Reports: Utilizes the Bharat Map Interface to generate geospatial reports for better decision-making.

• Digital Tagging and Certification: Automates the issuance of digital tags and certificates, reducing manual errors and enhancing efficiency.

 

Comprehensive Programme for Vegetables & Fruits

 

A comprehensive programme to promote production, efficient supplies, processing, and remunerative prices for farmers to be launched in partnership with states.

 

Makhana Board in Bihar

 

A Makhana Board to be established to improve production, processing, value addition, and marketing of makhana.

FPO in Agriculture – Farmer Producer Organization is a collective of farmers who come together to improve their income and bargaining power by operating as a formal business entity. An FPO is a legal entity formed by farmers, typically registered under The Companies Act as a Farmer Producer Company (FPC), or A cooperative society, or A society/trust.

 

Services Provided by FPOs

• Bulk input procurement (seeds, fertilizers, equipment)

• Collective marketing of produce

• Agro-processing and value addition

• Access to credit & insurance

• Training & capacity building

 

Government Support for FPOs

 

• 10,000 FPO Scheme (2020–24): Government of India initiative to create 10,000 new FPOs.

• Implementing Agencies: NABARD, SFAC (Small Farmers Agribusiness Consortium), NAFED.

• Financial Support: Equity Grant up to ₹15 lakh

 

National Mission on High Yielding Seeds

 

A National Mission on High Yielding Seeds to be launched aiming at strengthening the research ecosystem, targeted development and propagation of seeds with high yield, and commercial availability of more than 100 seed varieties.

Fisheries : Government to bring a framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.

 

Mission for Cotton Productivity

A 5-year mission announced to facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties.

According to the Ministry of Textiles, this initiative aligns with the 5 F principle–Farm to Fibre, Fibre to Factory, Factory to Fashion, Fashion to Foreign.

 

Enhanced Credit through KCC

 

The loan limit under the Modified Interest Subvention Scheme to be enhanced from ₹ 3 lakh to ₹ 5 lakh for loans taken through the KCC.

 

The Modified Interest Subvention Scheme (MISS) is a central government initiative in India aimed at providing short-term agricultural credit to farmers at subsidized interest rates. Introduced in the fiscal year 2006–07, the scheme has undergone several modifications to enhance its effectiveness and reach.

 

Key Features of MISS (as of FY 2025–26)

 

1. Loan Coverage and Limits : Short-term crop loans: Farmers can avail loans up to ₹5 lakh at a subsidized interest rate of 7% per annum.

2. Allied activities: Loans up to ₹2 lakh for activities like animal husbandry and fisheries are also covered under the scheme. 

3. Interest Subvention Rates : For banks: The government provides an interest subvention of 1.5% to banks on these loans.

4. For farmers: An additional incentive of 3% is provided for prompt repayment, effectively reducing the interest rate to 4% per annum for timely payers. 

5. Eligibility and Implementation

6. Beneficiaries: Farmers engaged in agriculture and allied activities.

7. Lending institutions: Public Sector Banks, Private Sector Banks (in rural and semi-urban areas), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), and Cooperative Banks.

8. Implementation and monitoring: The scheme is implemented and monitored by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD). 

9. Support During Natural Calamities : In the event of natural calamities, the scheme provides an interest subvention of 2% for the first year on the restructured amount of crop loans. This measure ensures that affected farmers receive financial support to recover and continue their agricultural activities. 

10. Post-Harvest Loans Against Negotiable Warehouse Receipts : To discourage distress sales and encourage storage, small and marginal farmers can avail interest subvention for up to six months post-harvest against negotiable warehouse receipts, provided the produce is stored in Warehousing Development Regulatory Authority (WDRA) accredited warehouses. 

 

Recent Developments

 

• Enhanced Loan Limits: In the Union Budget 2025–26, the government increased the short-term crop loan limit under MISS from ₹3 lakh to ₹5 lakh to provide greater financial support to farmers. 
• Digital Monitoring: The introduction of the Kisan Rin Portal (KRP) has digitized the process of claim submissions for interest subvention and prompt repayment incentives, ensuring transparency and efficiency in the scheme's implementation. 

 

Feature	Details
Loan Types Covered	Short-term crop loans, allied activities
Loan Limit	Up to ₹5 lakh (₹2 lakh for allied activities)
Interest Rate for Farmers	7% per annum
Prompt Repayment Incentive	Additional 3% subvention (effective rate 4%)
Interest Subvention to Banks	1.5%
Eligibility	Farmers with Kisan Credit Cards (KCC)
Implementing Agencies	RBI, NABARD

 

The Modified Interest Subvention Scheme continues to play a crucial role in providing affordable credit to farmers, thereby enhancing agricultural productivity and ensuring financial stability in the rural economy.

 

Feature	Modified Interest Subvention Scheme (MISS)	Kisan Credit Card (KCC) Scheme
Objective	To provide interest subsidy on short-term crop loans to reduce the effective interest rate for farmers	To provide timely, flexible credit to farmers for cultivation and allied activities
Launched by	Ministry of Agriculture & Farmers Welfare	NABARD (1998), implemented through banks
Target Group	All eligible farmers availing crop loans up to ₹3 lakh	All farmers including small/marginal, tenant, and sharecroppers
Type of Benefit	Subsidy on interest paid (typically 2% subvention + 3% prompt repayment incentive)	Credit facility via a card-based loan account
Loan Type Covered	Short-term crop loans (including loans through KCC)	Short-term credit for crops, post-harvest expenses, allied activities, consumption needs, etc.
Interest Rate	Effective rate can be 4% per annum if repaid on time (after subvention)	Nominal rate usually 7%; gets subvention through MISS
Link with Other Schemes	Works in tandem with KCC loans	Loans under KCC are eligible for interest subvention under MISS
Repayment Terms	Short-term (usually 12 months); repayment on time gets additional subvention	Flexible repayment cycle (based on cropping pattern); renewable yearly
Mode of Access	No separate application—benefit applies automatically if criteria are met	Farmers must apply for KCC through banks or Common Service Centres

 

Urea Plant in Assam

 

A plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam. Projected cost 10,600 crores. The Debt Equity ratio of the joint venture will be 70:30 and the tentative overall time schedule for commissioning of the project is 48 months. 

 

In the proposed joint venture, Government of Assam will have 40% shares, Brahmaputra Valley Fertilizer Corporation Limited will have 11% shares, Hindustan Urvarak & Rasayan Limited’s shares will be 13%, National Fertilizers Limited’s shares will be 18% and Oil India Limited will have 18% shares. 

 

India Post as a Catalyst for the Rural Economy

 

India Post with 1.5 lakh rural post offices, complemented by the India Post Payment Bank and a vast network of 2.4 lakh Dak Sevaks, will be repositioned to act as a catalyst for the rural economy.

India Post will also be transformed as a large public logistics organization. This will meet the rising needs of Viswakarmas, new entrepreneurs, women, self-help groups, MSMEs, and large business organizations. 

Support to NCDC : National Cooperative Development Corporation (NCDC) for its lending operations for the cooperative sector.

 

INDIA POST’S NEW ROLE

 

India Post will evolve into a large public logistics organization, aiming to meet the growing needs of artisans (Viswakarmas), women entrepreneurs, self-help groups (SHGs), micro, small, and medium enterprises (MSMEs), and other businesses.  The range of services provided by India Post will be broadened to include:

 

• Rural community hub co-location

• Institutional account services

• Direct Benefit Transfer (DBT) facilitation, cash withdrawals, and EMI collections

• Credit services tailored for micro-enterprises

• Insurance products

• Assisted digital services to bridge the digital divide 

 

Term	Meaning
Rural Community	Villages and remote areas where access to services is limited
Hub	A central point where people come for services
Co-location	Offering multiple facilities or services from the same building

 

Budgetary Allocations : For the fiscal year 2025–26, the Department of Posts has been allocated a total of ₹27,099.86 crore, comprising ₹26,141.51 crore in revenue expenditure and ₹958.35 crore in capital expenditure. 

 

MSMEs AS THE 2ND ENGINE OF DEVELOPMENT

 

Revision in classification criteria for MSMEs

 

The investment and turnover limits for classification of all MSMEs to be enhanced to 2.5 and 2 times respectively.

 

Credit Cards for Micro Enterprises

 

Customized Credit Cards with ₹ 5 lakh limit for micro enterprises registered on Udyam portal, 10 lakh cards to be issued in the first year.

 

Fund of Funds for Startups

 

A new Fund of Funds, with expanded scope and a fresh contribution of ₹ 10,000 crore to be set up.

 

What is Fund of Funds?

 

As on 31st December 2022, under the Fund of Funds Scheme (FFS) for startups, Rs. 7,980 crore has been committed to 99 Alternative Investment Funds (AIFs) and Rs. 3,400 crore has been disbursed to 72 AIFs which have in turn made investments of Rs. 14,077 crore in 791 startups, the Minister of State for Commerce and Industry, Shri Som Parkash said in his reply to a Parliament Question today.  As reported by SIDBI, FFS has played an important role in wealth creation, employment generation, inclusive growth and recognition for startups.

 

The Fund of Funds for Startups (FFS) Scheme was approved and established in 2016 with a corpus of Rs 10,000 crore, with contribution spread over the 14th  and 15th Finance Commission cycle based on progress of implementation, to provide much-needed boost to the Indian startup ecosystem and enable access to domestic capital.

 

Under FFS, the Scheme does not directly invest in startups, instead provides capital to SEBI-registered AIFs, known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments. Small Industries Development Bank of India (SIDBI) has been given the mandate of operating this Fund through selection of suitable daughter funds and overseeing the disbursal of committed capital. AIFs supported under FFS are required to invest at least 2 times of the amount committed under FFS in startups.

 

Scheme for First-time Entrepreneurs

 

A new scheme for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs to provide term-loans upto ₹ 2 crore in the next 5 years announced. The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organized.   

 

Focus Product Scheme for Footwear & Leather Sectors

 

To enhance the productivity, quality and competitiveness of India’s footwear and leather sector, a focus product scheme announced to facilitate employment for 22 lakh persons, generate turnover of ₹ 4 lakh crore and exports of over ₹ 1.1 lakh crore.

 

National Action Plan for Toys : Measures for the Toy Sector

 

A scheme to create high-quality, unique, innovative, and sustainable toys, making India a global hub for toys announced. National Action Plan for Toys to be implemented to make India a global hub for toys. The scheme will focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the 'Made in India' brand. 

 

PURVODAYA : Support for Food Processing

 

Government committed towards ‘Purvodaya’ for the food processing. A National Institute of Food Technology, Entrepreneurship and Management to be set up in Bihar. The institute will provide a strong fillip to food processing activities in the entire Eastern region. This will result in enhanced income for the farmers through value addition to their produce, and skilling, entrepreneurship and employment opportunities for the youth.

 

Manufacturing Mission - Furthering “Make in India”

 

A National Manufacturing Mission covering small, medium and large industries for furthering “Make in India” announced. A “National Manufacturing Mission” to cover small, medium and large industries for furthering “Make in India” has been announced in the Union Budget 2025-26 in Parliament today. This will provide policy support, execution roadmaps, governance and monitoring framework for central ministries and states.

 

The National Manufacturing Mission will lay emphasis on five focal areas i.e. 

1. ease and cost of doing business; 

2. future ready workforce for in-demand jobs; 

3. a vibrant and dynamic MSME sector; 

4. availability of technology; and

5. quality products.

 

The Mission will also support Clean Tech manufacturing and aims to improve domestic value addition and build the ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, very high voltage transmission equipment and grid scale batteries.

 

Budget also outlines measures for Labour-Intensive Sectors, adding that Government will  undertake specific policy and facilitation measures to promote employment and entrepreneurship opportunities in labour-intensive sectors.
 

 

INVESTMENT AS THE 3RD ENGINE OF DEVELOPMENT

 

Investing in People

 

Saksham Anganwadi and Poshan 2.0

 

Feature	Saksham Anganwadi Scheme	POSHAN Abhiyaan (National Nutrition Mission)
Launched	FY 2021–22 (as part of Poshan 2.0)	2018
Parent Ministry	Ministry of Women and Child Development (MWCD)	Ministry of Women and Child Development (MWCD)
Focus Area	Strengthening infrastructure and services at Anganwadi centers	Holistic improvement in nutrition through convergence
Target Beneficiaries	Children (0–6 yrs), adolescent girls (14–18), pregnant/lactating mothers	Children, adolescent girls, pregnant/lactating women
Main Objectives	- Upgrade Anganwadi infrastructure- Improve service delivery- Implement ECCE- Use digital tech (Poshan Tracker)	- Reduce stunting, wasting, anemia- Promote convergence across ministries- Use tech for monitoring
Key Components	- Supplementary nutrition- ECCE- Smart Anganwadis- Nutrition gardens (Poshan Vatikas)	- Real-time monitoring (Poshan Tracker)- Behavioural change- Jan Andolan (mass movement)
Tech Use	Poshan Tracker App (for Anganwadi-level monitoring)	Poshan Tracker + dashboards for national-level analytics
Budget Coverage	Forms part of Poshan 2.0 umbrella scheme	Was a standalone mission until merged into Poshan 2.0

 

Ministry of Women and Child Development has issued Operational Guidelines regarding implementation of ‘Saksham Anganwadi and Poshan 2.0'.   The scheme has been approved by the Government of India for implementation during the 15th Finance Commission period 2021-22 to 2025-26.

 

Saksham Anganwadi and Poshan 2.0 is an Integrated Nutrition Support Programme. It seeks to address the challenges of malnutrition in children, adolescent girls, pregnant women and lactating mothers by enhancing the delivery of nutrition and health services through upgraded Anganwadi centers. And also by a strategic shift in nutrition content and delivery and by creation of a convergent eco-system to develop and promote practices that nurture health, wellness and immunity.

 

Saksham Anganwadi plans to upgrade 2 lakh Anganwadi centers by 2025–26, enhancing them with:

 

• Smart Learning Tools: LED screens, audio-visual aids, and internet connectivity.

• Health and Nutrition Facilities: RO water systems, clean toilets, and Poshan Vatikas (nutrition gardens).

• Digital Monitoring: Implementation of the Poshan Tracker, a centralized data system linked with the Reproductive and Child Health (RCH) portal, to monitor service delivery and outcomes.

 

The objectives of Poshan 2.0 are as follows: 

 

1. To contribute to human capital development of the country;
2. Address challenges of malnutrition;
3. Promote nutrition awareness and good eating habits for sustainable health and wellbeing; and
4. Address nutrition related deficiencies through key strategies.
5. Poshan 2.0 shall focus on Maternal Nutrition, Infant and Young Child Feeding Norms, Treatment Protocols for SAM/MAM (SAM (Severe Acute Malnutrition) and MAM (Moderate Acute Malnutrition)) and Wellness through AYUSH practices to reduce wasting and under-weight prevalence besides stunting and anemia, supported by the ‘Poshan Tracker’, a new, robust ICT centralised data system which is being linked with the RCH Portal (Anmol  : Reproductive and Child Health (RCH) Portal is designed for early identification and tracking of the individual beneficiary throughout the reproductive lifecycle of women and promote, monitor and support the reproductive, maternal, new-born and child health (RMNCH) schemes/programme delivery and reporting of MoHFW.

 

Atal Tinkering Labs

 

50,000 Atal Tinkering Labs to be set up in Government schools in next 5 years. Atal Tinkering Labs (ATLs) are an initiative by the Government of India under the Atal Innovation Mission (AIM), launched in 2016. These labs aim to foster innovation and creativity among school students by providing them with hands-on experience in science, technology, engineering, and mathematics (STEM) fields.

 

Objectives

 

• Cultivate Innovation: Encourage students to develop a scientific temper and innovative mindset.

• Hands-on Learning: Provide practical experience in STEM subjects through project-based activities.

• Problem-Solving Skills: Enhance critical thinking and problem-solving abilities among students.

• Entrepreneurial Spirit: Instill an entrepreneurial attitude by encouraging students to identify and solve real-world problems.

 

Key Features

 

• State-of-the-Art Equipment: Each ATL is equipped with tools such as 3D printers, robotics kits, sensors, and microcontroller boards to facilitate experiential learning.

• Curriculum Integration: Activities are designed to complement the school curriculum, making learning more engaging.

• Mentorship Programs: Professionals and experts mentor students to guide their innovative projects.

• Competitions and Exhibitions: Students get opportunities to showcase their projects at various levels, promoting healthy competition and recognition.

 

Eligibility and Setup

 

• Eligible Institutions: Schools managed by government bodies, local authorities, private trusts, or societies with classes from Grade VI to X are eligible to apply.

• Infrastructure Requirements: Schools should have a dedicated space of 1,500 sq. ft. (or 1,000 sq. ft. in hilly and island regions) to set up the lab.

• Financial Support: AIM provides a grant of ₹20 lakh per ATL, which includes ₹10 lakh for establishing the lab and ₹10 lakh for operational expenses over five years.

 

Impact and Reach

ATLs have been established in over 10,000 schools across India, covering more than 87% of districts, including 110 aspirational districts.

Broadband Connectivity to Government Secondary Schools and PHCs : Broadband connectivity to be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet project.

 

Bharatiya Bhasha Pustak Scheme

What is it?

A government initiative aimed at providing digital textbooks and study resources in Indian languages for school and university students, promoting regional languages in education.

 

Objectives

• Promote Indian languages in formal education.

• Bridge the language gap in learning by offering materials in mother tongues.

• Ensure inclusivity and better comprehension through native-language study materials.

• Support the vision of NEP 2020 on multilingual education.

Key Features

• Digital study materials in multiple Indian languages.

• Focus on STEM, Social Sciences, Humanities, and Commerce.

• Special emphasis on technical education in Indian languages.

• Complements the ASMITA initiative, under which 22,000 books will be developed in five years.

• Use of AI tools for translation, voice-assisted learning, and personalized content delivery.

 

Implementation : Available on platforms like DIKSHA, e-PG Pathshala, and National Digital Library of India. Involves institutions affiliated with UGC, AICTE, and other regulatory bodies. Led by 13 nodal universities and several partner institutions.

Bharatiya Bhasha Samiti: A high-powered committee formed in 2021 under the Ministry of Education to promote Indian languages.

 

National Centres of Excellence for Skilling

 

5 National Centres of Excellence for skilling to be set up with global expertise and partnerships to equip our youth with the skills required for “Make for India, Make for the World” manufacturing.

 

Expansion of Capacity in IITs : Additional infrastructure to be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students.

 

Centre of Excellence in AI for Education : A Centre of Excellence in Artificial Intelligence for education to be set up with a total outlay of ₹ 500 crore.

 

Expansion of medical education : 10,000 additional seats to be added in medical colleges and hospitals next year, adding to 75000 seats in the next 5 years.

 

Day Care Cancer Centres in all District Hospitals : Government to set up Day Care Cancer Centres in all district hospitals in the next 3 years, 200 Centres  in 2025-26.

 

Strengthening urban livelihoods : A scheme for socio-economic upliftment of urban workers to help them improve their incomes and have sustainable livelihoods announced.

 

PM SVANidhi : Scheme to be revamped with enhanced loans from banks, UPI linked credit cards with ₹ 30,000 limit, and capacity building support. The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a central sector micro-credit scheme launched on June 1, 2020, by the Ministry of Housing and Urban Affairs (MoHUA). It aims to empower street vendors by providing them with affordable working capital loans to resume their livelihoods, especially those adversely affected by the COVID-19 pandemic.

Key Features of PM SVANidhi

• Collateral-Free Loans: Offers an initial working capital loan of up to ₹10,000, repayable over one year. Upon timely repayment, vendors become eligible for enhanced loans of ₹20,000 and subsequently ₹50,000 in the second and third tranches, respectively. 

• Interest Subsidy: Provides a 7% annual interest subsidy on timely or early repayment of the loan, credited directly to the beneficiary’s bank account on a quarterly basis. 

• Digital Transactions Incentive: Encourages digital payments by offering cashback incentives of up to ₹100 per month (₹1,200 annually) for conducting digital transactions using prescribed platforms such as BHIM UPI, Paytm, Google Pay, etc. 

• UPI-Linked Credit Cards: As announced in Budget 2025, the scheme includes the provision of UPI-linked credit cards with a limit of ₹30,000 to further support street vendors.
   

Social Security Scheme for Welfare of Online Platform Workers

Government to arrange for identity cards, registration on e-Shram portal and healthcare under PM Jan Arogya Yojna, for gig-workers.

 The Social Security Scheme for Online Platform Workers, announced in the Union Budget 2025–26, is a significant initiative aimed at providing comprehensive welfare benefits to gig and platform workers across India.

Key Features of the Scheme

1. e-Shram Portal Registration : Gig workers will be registered on the e-Shram portal, receiving a 12-digit Universal Account Number (UAN). This registration facilitates access to various government welfare schemes and ensures formal recognition within the labor ecosystem. 

2. Health Insurance under PM-JAY : Registered workers will be covered under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), providing health insurance coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalizations. 

3. Pension and Provident Fund Benefits : The scheme proposes pension plans and provident fund benefits for gig workers, offering financial security during old age. 

4. Life and Disability Insurance ; Gig workers will be eligible for life and disability insurance, providing financial protection in case of accidents or unforeseen events. 

5. Maternity Benefits : Female gig workers will be entitled to maternity benefits, supporting them financially during maternity leave. 

6. Accident Insurance : The framework includes accident insurance for gig workers, ensuring medical expenses are covered in case of work-related injuries. 

7. Social Security Fund : A Social Security Fund will be established to finance these welfare schemes. The fund may be supported through various mechanisms, including a proposed 1% to 2% contribution based on the gig worker’s daily earnings from each platform they work with. 

Implementation and Oversight

The Ministry of Labour and Employment is finalizing the contours of the scheme and will seek Cabinet approval soon. The scheme aligns with the Code on Social Security, 2020, which provides for framing suitable social security measures for gig and platform workers. 

Context and Significance

India's gig economy is rapidly expanding, with NITI Aayog estimating the gig workforce to increase from 7.7 million in 2020-21 to 23.5 million by 2029-30. This initiative marks a transformative step towards integrating gig workers into India's formal labor welfare programs, ensuring their security and well-being in the evolving employment landscape.
 

Investing in the Economy

Public Private Partnership in Infrastructure : Infrastructure-related ministries to come up with a 3-year pipeline of projects in PPP mode, States also encouraged.

Support to States for Infrastructure : An outlay of ₹1.5 lakh crore proposed for the 50-year interest free loans to states for capital expenditure and incentives for reforms.

Asset Monetization Plan 2025-30 : Second Plan for 2025-30 to plough back capital of ₹ 10 lakh crore in new projects announced.

Jal Jeevan Mission : Mission to be extended until 2028 with an enhanced total outlay. The Jal Jeevan Mission (JJM), launched by the Government of India in August 2019, aims to provide safe and adequate drinking water through individual household tap connections by 2024 to all rural households in India. 

Funding Pattern:

• Himalayan and North-Eastern States: 90:10 (Centre:State).

• Other States: 50:50 (Centre:State).

• Union Territories: 100% funded by the Central Government. 

Progress and Achievements : Household Coverage: As of October 2024, 15.19 crore rural households have been provided with tap water connections, increasing coverage from 17% in 2019 to 78.58%. State and UT Achievements: Eleven States/UTs, including Goa, Telangana, Haryana, and Gujarat, have achieved 100% tap water coverage in rural households.  Institutional Access: Over 9.29 lakh schools and Anganwadi centres now have access to clean water. 

Impact and Significance

• Health Improvements: Access to clean drinking water is expected to reduce water-borne diseases, potentially decreasing under-five mortality rates by 25% and preventing approximately 4 lakh diarrhoeal deaths annually. 

• Economic Benefits: Improved health and reduced medical expenses could lead to economic savings of up to ₹8.37 lakh crore. 

• Employment Generation: The mission is projected to create approximately 59.93 lakh direct and 2.22 crore indirect jobs during the construction phase, with additional employment opportunities in operation and maintenance. 

• Environmental Sustainability: JJM promotes sustainable water management practices, including rainwater harvesting and greywater reuse, contributing to environmental conservation.

Urban Challenge Fund : An Urban Challenge Fund of ₹ 1 lakh crore announced to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’, allocation of ₹ 10,000 crore proposed for 2025-26. The Urban Challenge Fund (UCF), introduced in the Union Budget 2025-26, is a ₹1 lakh crore initiative aimed at transforming Indian cities into dynamic growth hubs. It focuses on creative redevelopment, enhancing water and sanitation infrastructure, and promoting sustainable urban development.

Key Features

Funding Structure: The UCF will finance up to 25% of the cost of eligible, bankable urban infrastructure projects. The remaining 75% is expected to be mobilized by cities through municipal bonds, bank loans, and public-private partnerships (PPPs), with at least 50% coming from these market-based sources. Initial Allocation: An allocation of ₹10,000 crore has been proposed for the fiscal year 2025-26 to kick-start the initiative. 

Focus Areas:

• Transforming cities into economic growth hubs.

• Creative redevelopment of urban spaces.

• Enhancing water supply and sanitation services. 

• Urban Reforms: The fund incentivizes states to implement urban sector reforms related to governance, municipal services, land use, and urban planning. 

Role of Public-Private Partnerships (PPPs) : PPPs are central to the UCF's strategy, enabling the government to leverage private sector investment, expertise, and efficiency. This collaborative approach aims to accelerate project delivery, foster innovation, and ensure cost-effective solutions in urban infrastructure development. 

Complementarity with Existing Initiatives

The UCF complements existing urban development programs such as the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). By providing additional financial support and encouraging market-based funding, the UCF seeks to enhance the effectiveness and reach of these initiatives. 

Power Sector Reforms

Government will incentivize electricity distribution reforms and augmentation of intra-state transmission capacity by states. This will improve financial health and capacity of electricity companies. Additional borrowing of 0.5 per cent of GSDP will be allowed to states, contingent on these reforms. 

Nuclear Energy Mission for Viksit Bharat : Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to be taken up. Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore to be set up, 5 indigenously developed SMRs to be operational by 2033.

Shipbuilding : The Shipbuilding Financial Assistance Policy to be revamped. Large ships above a specified size to be included in the infrastructure harmonized master list (HML).

Maritime Development Fund : A Maritime Development Fund with a corpus of ₹ 25,000 crore to be set up, with up to 49 per cent contribution by the Government, and the balance from ports and private sector. The Maritime Development Fund (MDF), announced in the Union Budget 2025-26, is a ₹25,000 crore initiative aimed at revitalizing India's maritime sector. This fund is designed to provide long-term, low-cost financing to bolster shipbuilding, shipping, and related infrastructure, thereby enhancing India's position in the global maritime industry.

Key Features of the Maritime Development Fund

1. Corpus and Funding Structure: The MDF will have a total corpus of ₹25,000 crore, with the government contributing up to 49%. The remaining funds will be mobilized from ports and the private sector. 

2. Investment Goals: By 2030, the fund aims to attract up to ₹1.5 lakh crore in investments into the shipping sector. 

3. Financial Support Mechanisms: The MDF will offer various forms of financial assistance, including debt, equity, viability gap funding (VGF), and buyer credit, to support indigenous shipbuilding and other maritime infrastructure projects. 

Strategic Objectives

1. Boost Domestic Shipbuilding: The fund aims to reduce India's reliance on foreign vessels by promoting domestic shipbuilding, thereby strengthening the country's maritime capabilities. 

2. Develop Shipbuilding Clusters: Shipbuilding and repair clusters are planned across five states—Gujarat, Maharashtra, Kerala, Andhra Pradesh, and Odisha—to enhance the range, categories, and capacity of ships. 

3. Promote Green Shipping: The MDF will support the development of green and energy-efficient vessels, contributing to India's goal of transitioning to renewable energy sources in coastal and inland waterway shipping within the next five years. 

Complementary Initiatives

Shipbreaking Credit Note Scheme: To promote the circular economy, a new scheme will issue credit notes worth 40% of the scrap value of vessels recycled at Indian facilities, which can be redeemed against the purchase of new Made-in-India ships. 

The Maritime Development Fund is a pivotal component of India's broader strategy to become a global maritime hub by 2047. By fostering domestic shipbuilding, enhancing infrastructure, and promoting sustainable practices, the MDF aims to position India among the world's top five shipbuilding nations.

UDAN - Regional Connectivity Scheme A modified UDAN scheme announced to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. Also to support helipads and smaller airports in hilly, aspirational, and North East region districts. UDAN has enabled 1.5 crore middle-class people to meet their aspirations for speedier travel. The scheme has connected 88 airports and operationalized 619 routes. The scheme will also support helipads and smaller airports in hilly, aspirational, and North East region districts.

Greenfield Airport in Bihar Greenfield airports announced in Bihar, in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta.

Western Koshi Canal Project in Mithilanchal : Financial support for the Western Koshi Canal ERM (Extension, Renovation, and Modernization ) Project in Bihar.

Mining Sector Reforms A policy for recovery of critical minerals from tailings to be brought out.
 

SWAMIH Fund 2 : A fund of ₹ 15,000 crore aimed at expeditious completion of another 1 lakh dwelling units, with contribution from the Government, banks and private investors announced. The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2.0 is a ₹15,000 crore initiative announced in the Union Budget 2025-26. Its primary objective is to expedite the completion of stalled residential projects across India, particularly benefiting middle-class homebuyers who are burdened with both home loan EMIs and rental expenses.

Background and Achievements of SWAMIH Fund 1

Launched in November 2019, the original SWAMIH Fund was established to provide priority debt financing for the completion of stalled, brownfield, and RERA-registered residential projects in the affordable and mid-income housing segments. Managed by SBICAP Ventures Ltd., a subsidiary of the State Bank Group, the fund has successfully completed 50,000 housing units, with an additional 40,000 units expected to be delivered by the end of 2025. 

Key Features of SWAMIH Fund 2.0

• Corpus: ₹15,000 crore.

• Structure: A blended finance facility with contributions from the government, banks, and private investors. 

• Target: Completion of an additional 1 lakh housing units in stalled projects. 

• Management: Administered by SBICAP Ventures Ltd., ensuring professional oversight and efficient fund deployment. 

Eligibility Criteria for Projects

• Project Type: Residential developments primarily catering to the affordable and mid-income housing segments.

• Project Status: Stalled or significantly delayed due to financial constraints.

• The Economic Times

• RERA Compliance: Must be registered under the Real Estate (Regulation and Development) Act (RERA).

• Construction Progress: At least 30% of the construction work should be completed.

• Financial Viability: Projects should be net worth positive, meaning the value of sold receivables plus unsold inventory exceeds the cost required to complete the project and service the investment by the fund.

• Financial Status: Projects that have been declared Non-Performing Assets (NPAs) or are undergoing proceedings before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) are eligible.

• Developer Profile: Open to first-time developers, established developers with troubled projects, and those with a history of stalled projects or customer complaints.

• Legal Considerations: Projects with litigation issues are also considered, as the fund aims to be the lender of last resort for distressed projects. 

Tourism for employment-led growth : Top 50 tourist destination sites in the country to be developed in partnership with states through a challenge mode. The following measures will be taken for facilitating employment-led growth:

• Organizing intensive skill-development programmes for our youth including in Institutes of Hospitality Management; 

• Providing MUDRA loans for homestays;

• Improving ease of travel and connectivity to tourist destinations; 

• Providing performance-linked incentives to states for effective destination management including tourist amenities, cleanliness, and marketing efforts; and

• Introducing streamlined e-visa facilities along with visa-fee waivers for certain tourist groups.

Investing in Innovation

Research, Development and Innovation : ₹20,000 crore to be allocated to implement private sector driven Research, Development and Innovation initiative announced in the July Budget.

Deep Tech Fund of Funds Deep Tech Fund of Funds to be explored to catalyze the next generation startups.

PM Research Fellowship 10,000 fellowships for technological research in IITs and IISc with enhanced financial support.

Gene Bank for Crops Germplasm 2nd Gene Bank with 10 lakh germplasm lines to be set up for future food and nutritional security.

National Geospatial Mission A National Geospatial Mission announced to develop foundational geospatial infrastructure and data.

Objectives of the National Geospatial Mission

• Modernization of Land Records: Digitizing and updating land records to ensure accuracy and transparency, thereby reducing land disputes and facilitating efficient land management.

• Enhancement of Urban Planning: Utilizing geospatial data to inform and improve urban development strategies, infrastructure planning, and resource allocation.

• Development of Geospatial Infrastructure: Establishing a robust geospatial data framework to support various sectors, including agriculture, disaster management, and environmental monitoring.

• Integration with PM Gati Shakti: Leveraging the existing PM Gati Shakti framework to facilitate coordinated planning and implementation of infrastructure projects across the country.

Gyan Bharatam Mission

A Gyan Bharatam Mission for survey, documentation and conservation of our manuscript heritage with academic institutions, museums, libraries and private collectors to be undertaken to cover more than 1 crore manuscripts announced. These manuscripts, housed in academic institutions, museums, libraries, and private collections, span various disciplines, including philosophy, science, medicine, and art.

Integration with Modern Education: The initiative aligns with the National Education Policy (NEP) 2020, aiming to integrate traditional Indian knowledge into contemporary education and research frameworks.
 

Significance

The Gyan Bharatam Mission represents a concerted effort to preserve India's rich cultural and intellectual legacy. By digitizing and centralizing access to ancient manuscripts, the mission not only protects these invaluable resources from deterioration but also democratizes access to knowledge, fostering research and innovation rooted in India's traditional wisdom. 

 

EXPORTS AS THE 4TH ENGINE OF DEVELOPMENT

 

Export Promotion Mission

An Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance to be set up. The Export Promotion Mission (EPM), announced in the Union Budget 2025–26 with an allocation of ₹2,250 crore, is a strategic initiative aimed at enhancing India's export competitiveness, particularly for Micro, Small, and Medium Enterprises (MSMEs). 

Jointly driven by the Ministries of Commerce, MSME, and Finance, the mission focuses on facilitating easier access to export credit, promoting alternative financing instruments like cross-border factoring, and assisting MSMEs in navigating non-tariff measures in global markets. 

Key Features of the Export Promotion Mission

1. Financial Support for MSMEs : Enhanced Credit Access: Exporter MSMEs can now avail increased credit benefits from ₹5 crore to ₹10 crore, generating additional credit of ₹1.5 lakh crore over the next five years. Well-performing exporter MSMEs are eligible for term loans up to ₹20 crore. 

2. Cross-Border Factoring Support: The mission promotes the use of export factoring services to reduce dependence on traditional bank financing. This includes efforts to lower factoring costs and provide interest subvention to factoring companies, aiming to align with the global average where factoring constitutes about 3% of merchandise exports. 

3. How Export Factoring Works?

4. An exporter ships goods to a foreign buyer on credit terms (e.g., 60 days). The exporter sells the invoice to a factor (usually a bank or NBFC). The factor pays 80–90% of the invoice amount upfront. The factor collects the full amount from the foreign buyer when due. Once payment is received, the remaining balance (minus fees/interest) is sent to the exporter.

5. Digital Trade Infrastructure: BharatTradeNet (BTN) : A new digital public infrastructure, BharatTradeNet (BTN), will be established to digitize and streamline India's international trade ecosystem. BTN aims to eliminate paper-based processes, improve trade finance access, and enhance regulatory compliance by integrating key stakeholders such as Customs, DGFT, GSTN, banks, and exporters into a unified digital platform. 

6. Sector-Specific Export Incentives : Marine Products: To boost exports in the marine sector, customs duty on frozen fish paste (Surimi) has been reduced from 30% to 5%, and duty on fish hydrolysate has been reduced to 5% from 15%. 

7. Export Readiness Programs: The mission includes programs to train MSMEs in e-commerce, digital marketing, and international trade regulations. 

8. Compliance Facilitation: Support will be provided to MSMEs to tackle non-tariff measures imposed by other countries, ensuring smoother access to international markets. 

The schemes under the Export Promotion Mission are currently being formulated and are expected to be rolled out within 4 to 5 months. These schemes will focus on providing credit at easy terms, promoting alternative financing instruments, and offering assistance to deal with non-tariff measures imposed by other countries. 

By integrating digital solutions like BharatTradeNet and providing targeted financial support, the mission aims to create a more predictable and efficient trade environment, aligning with India's goal of achieving $2 trillion in exports.

BharatTradeNet

‘BharatTradeNet’ (BTN) for international trade to be set-up as a unified platform for trade documentation and financing solutions. BharatTradeNet is a proposed digital platform aimed at transforming India's trade infrastructure. Here's a catchy overview:

BharatTradeNet is a futuristic trade facilitation network designed to digitally integrate India’s exporters, importers, logistics providers, customs authorities, and financial institutions onto a single, unified platform. Think of it as India’s own trade-tech super app, streamlining everything from documentation to shipment tracking.

Key Components:

• Exporters & Importers: Engage in trade activities, submitting and receiving necessary documentation.

• BharatTradeNet Platform: Central hub that digitizes and streamlines trade processes, ensuring seamless interaction among all stakeholders.

• Logistics Providers: Offer real-time tracking and updates on shipments, integrated directly into the platform.

• Customs Authorities: Access and process digital documents for swift clearance procedures.

• Banks & NBFCs: Provide embedded financing solutions, leveraging real-time data for risk assessment and credit provision.

• Retail Banker International

• Regulatory Bodies: Ensure compliance with international standards and facilitate secure data exchange.

 

Key Objectives:

• Simplify cross-border trade by reducing paperwork and delays.

• Boost MSMEs by making international trade more accessible.

• Enable real-time tracking and transparency across the supply chain.

• Promote digital exports and integrate with global trade systems.

Expected Features

• Unified digital documentation and e-invoicing system.

• AI-powered risk assessment and compliance tools.

• Integration with ports, customs, GSTN, and DGFT.

• Trade analytics dashboard for exporters and policymakers.

• It fits well under India’s push for “Digital India” + “Make in India”, making Indian trade faster, smarter, and more globally competitive.

 

Benefits of BharatTradeNet:

• Digitization of Over 30 Trade Documents: Including Bills of Lading and Promissory Notes, facilitating secure electronic issuance and storage.

• Real-Time Data Sharing: Enhances transparency and efficiency across the trade ecosystem.

• Embedded Trade Financing: Enables exporters and importers, especially MSMEs, to access credit seamlessly within the trade process.

• Standardization & Compliance: Aligns with global standards like UNCITRAL's MLETR, ensuring smooth international transactions. 

• The United Nations Commission on International Trade Law (UNCITRAL) is the principal legal body of the United Nations system in the field of international trade law. Established in 1966 by the UN General Assembly through Resolution 2205(XXI), UNCITRAL's mandate is to promote the progressive harmonization and unification of international trade law.

• The Model Law on Electronic Transferable Records (MLETR), adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 2017, provides a legal framework for the use of electronic transferable records (ETRs) that are functionally equivalent to paper-based transferable documents such as bills of lading, promissory notes, and warehouse receipts. 

• Integration with Existing Initiatives: Complementary to platforms like the PM Gati Shakti, promoting multimodal connectivity.

• By centralizing and digitizing trade processes, BharatTradeNet aims to reduce bureaucratic delays, lower transaction costs, and make India's exports more competitive on the global stage.

 

National Framework for GCC 

A national framework to be formulated as guidance to states for promoting Global Capability Centres in emerging tier 2 cities.

Global Capability Centres (GCCs)—also known as Global In-house Centres (GICs)—are offshore units of multinational corporations (MNCs) that perform a wide range of strategic and support functions. These centres are typically set up in talent-rich and cost-effective countries like India, the Philippines, and Poland.

What GCCs Do:

• They handle various operations, such as:

• IT services and software development

• Finance & accounting

• HR and payroll

• Analytics, AI/ML, and R&D

• Customer support and shared services

 

Feature	Global Capability Centre (GCC)	Company Office / Branch
Purpose	To serve global operations of a multinational company	To serve local/regional business or market
Functions	Tech development, analytics, finance, R&D, global support	Sales, marketing, distribution, customer service locally
Client Focus	Internal units of the parent company globally	External customers (end users or clients)
Ownership	100% owned and controlled by the parent MNC	Can be a local office, partner, subsidiary, or franchise
Revenue Role	Cost centre or value centre – does not directly earn revenue	Typically a revenue-generating entity
Skill Focus	High-skilled: digital, technical, strategic	Mixed: business, marketing, admin, and front-line roles
Examples	JPMorgan’s GCC in Bengaluru serving global finance ops	JPMorgan branch in Mumbai serving retail customers

 

Why Companies Set Them Up

• Cost efficiency – Lower operational and labor costs.

• Access to skilled talent – Especially in countries like India with a strong tech workforce.

• 24/7 operations – Time zone advantage supports round-the-clock work.

• Scalability and flexibility – Easier to expand teams and services.

• Strategic value – Many GCCs are moving from support functions to innovation hubs.

India hosts over 1,600+ GCCs.

 

REFORMS 

 

FDI in Insurance Sector : The FDI limit for the insurance sector to be raised from 74 to 100 per cent, for those companies which invest the entire premium in India.

Credit Enhancement Facility by NaBFID : NaBFID to set up a ‘Partial Credit Enhancement Facility’ for corporate bonds for infrastructure. Partial Credit Enhancement is a financial support provided—usually by a government-backed institution or multilateral agency—that guarantees part of the debt repayment of a bond issue. It does not guarantee the full repayment, but a part of it—hence the term “partial.”

The National Bank for Financing Infrastructure and Development (NaBFID) is a specialized Development Finance Institution (DFI) established by the Government of India in 2021 under the NaBFID Act, 2021. It aims to address the long-term financing needs of India's infrastructure sector and to develop the bonds and derivatives markets necessary for infrastructure financing .

The National Bank for Financing Infrastructure and Development (NaBFID) is a specialized development financial institution established by the Government of India in 2021 under the NaBFID Act, 2021. Its primary mandate is to address the long-term financing needs of India's infrastructure sector, which is crucial for the country's economic growth and development.

NaBFID has an authorized share capital of ₹1,00,000 crore, with the central government holding at least 26% of the shares at all times.

Funding Sources: The institution can raise funds through loans, issuance of bonds and debentures, and borrowing from multilateral institutions like the World Bank and Asian Development Bank. 

Grameen Credit Score : Public Sector Banks to develop ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas.
 

Traditional Score	Grameen Credit Score
Based on formal loans, EMIs, credit cards	Based on informal data like mobile use, SHG behavior
Excludes unbanked individuals	Includes low-income and rural borrowers
Provided by formal credit bureaus	Often developed by fintechs or co-ops
Urban-centric	Rural & semi-urban focused

Investment Friendliness Index of States : An Investment Friendliness Index of States to be launched in 2025 to further the spirit of competitive cooperative federalism announced.

 

Jan Vishwas Bill 2.0 : The Jan Vishwas Bill 2.0 to decriminalize more than 100 provisions in various laws. The Jan Vishwas Bill 2.0 is a legislative initiative by the Indian government aimed at further enhancing the ease of doing business by decriminalizing minor offences across various laws. Building upon the Jan Vishwas (Amendment of Provisions) Act, 2023—which decriminalized 183 provisions across 42 central laws—the 2.0 version seeks to extend these reforms.