USISPF welcomes India's Union Budget 2025-26, applauds landmark reforms and forward-looking initiatives

In a statement, the USISPF said, "It is a strong blueprint for propelling economic growth toward the government's vision of a USD 5 trillion economy. Promoting financial modernisation through strategic investments and landmark reforms in the tax structure, the budget signals to investors that India is committed to fostering a resilient, inclusive, and globally competitive economic environment."

It further said that the 2025-26 Union Budget maintains the path of fiscal consolidation started four years ago with a projected fiscal deficit of 4.4 per cent, down from 4.8 per cent last year, driven by a large increase in net tax revenues and a moderate increase in expenditures.

"We especially appreciate the shift in spending priorities this year, with greater attention to domestic consumption to support growth through increased domestic demand. We welcome increased spending outlays for rural and urban development, social welfare, and development of the Northeast states, and note the more moderate increases in capital investments this year, where previous allocations to key sectors such as transportation and telecommunications continue working their way through the investment cycle," USISPF said.

On the policy side, the USISPF commended the significant reforms in financial services, technology, and agriculture that will continue to attract investment and promote innovation in critical sectors across the economy.

It said, "We welcome the government's plan to establish a new Centre of Excellence for Artificial Intelligence (AI) for education, which ties into previous announcements of similar Centres of Excellence in AI for agriculture, health, and sustainable cities. AI will play a key role in strengthening technological ties between the United States and India, particularly as the partnership grows through initiatives like the Initiative for Critical and Emerging Technology (iCET)."

USISPF also appreciated the government's decision to remove the cap on foreign direct investment and simplify the governance constraints in the insurance sector.

Dr. Mukesh Aghi, President and CEO of USISPF, said, "USISPF is confident that the budget will accelerate India's economic growth, drive increased investments, job creation, and innovation, while further cementing its status as a global economic powerhouse. We eagerly anticipate the positive impact of these measures on the Indian economy attracting more American investments into India and the deepening of economic and commercial ties between our two democracies."

He added, "USISPF remains steadfast in supporting the government's vision for a prosperous and inclusive India". He added, "The comprehensive measures--from removing the FDI cap in the insurance sector and simplifying KYC processes to increasing the income tax limit--are set to stimulate economic activity, boost consumer spending, and revive the 'animal spirit' of the economy."

Notably, Union Minister Nirmala Sitharaman presented the Union Budget in Parliament on Saturday. (ANI)