Opinion | Budget 2025’s Dual-Track Strategy: Balancing Tradition And Innovation
The Union Budget underscores a commitment to both legacy industries and next-generation enterprises, fostering an economy that is inclusive, dynamic and future-ready
India stands at a crucial juncture in its economic evolution, balancing the strengths of its deeply rooted traditional sectors with the promise of cutting-edge innovation. As the nation continues its stride toward becoming a global powerhouse, it is imperative to ensure that its time-tested industries, such as agriculture, textiles, and handicrafts, are not only preserved but also modernised, while simultaneously fostering rapid advancements in artificial intelligence (AI), research and development, and startup ecosystems.
The Union Budget 2025 has laid out a vision to harmonise these contrasting yet complementary domains, ensuring an economy that is both resilient and forward-looking.
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For centuries, agriculture has been the backbone of India’s economy, providing livelihood to nearly 60 per cent of the population and contributing around 17 per cent to the GDP. While urbanisation and industrialisation have reshaped economic priorities, agriculture remains central to India’s prosperity. Recognising this, the government has introduced initiatives such as the Prime Minister Dhan-Dhaanya Krishi Yojana, aimed at revitalising 100 underperforming districts by infusing technology into farming practices.
The push for sustainable agriculture, coupled with an emphasis on enhancing yield through high-quality seeds, Rs 5 lakh Kisan Credit Card (KCC) loan limits, irrigation infrastructure, and modern storage facilities, ensures that farmers are equipped to meet the demands of a changing climate and evolving market structures.
In parallel, the 5.7 crore MSMEs, rooted in traditional handicrafts, textiles, and small-scale industries, continue to be a significant employment generator, contributing 30 per cent to GDP and 45 per cent to exports. The introduction of customised credit instruments and Rs 1.5 lakh crore increase in credit guarantee cover is fostering an environment where small enterprises can scale up without financial roadblocks.
India’s heritage industries, which include handlooms and indigenous crafts, are receiving support through structured funding mechanisms, helping artisans integrate their work with the digital economy. One notable initiative is the proposal for a Makhana Board in Bihar, aimed at improving production, processing, and market access for makhana farmers. This move is expected to boost incomes and create employment opportunities in rural areas.
By leveraging e-commerce platforms and digital payment systems, these sectors are reaching global markets, ensuring sustainability in an increasingly technology-driven economy.
Yet, as India strengthens its traditional economic base, it is equally committed to pioneering the future. Budget 2025 prioritises advancements in AI, deep technology, and digital transformation, with a dedicated Rs 20,000 crore allocation for research and development. The government aims to position India as a leader in emerging technologies.
Investments in AI-driven healthcare, smart manufacturing, and automation reflect a concerted effort to integrate technology across all levels of industry and public services. The establishment of 100 innovation hubs and technology clusters will enable startups and tech entrepreneurs to develop solutions that can scale globally, ensuring India remains at the forefront of the digital revolution.
Education and skilling programs are key to bridging the gap between traditional employment avenues and futuristic industries. The expansion of 50,000 Atal Tinkering Labs in government schools and the promotion of vocational training tailoured for AI, blockchain, and data analytics demonstrate a strategic approach to workforce development.
Ensuring that India’s youth, which constitutes 65 per cent of the population, is equipped with both conventional craftsmanship skills and digital literacy will create a labour force that is both adaptable and competitive in the global marketplace.
Infrastructure and urban planning are also central to balancing heritage with modernisation. While large-scale industrialisation projects and setting up of Rs 1 lakh crore Urban Challenge Fund signal a shift toward high-tech urbanisation, there is a growing emphasis on maintaining cultural heritage through sustainable tourism and conservation programmes. The development of 50 key tourist destinations centered around India’s historical and spiritual landmarks not only boosts local economies but also reinforces the importance of preserving traditions amid rapid modernisation.
This dual-track approach—protecting traditional economic foundations while aggressively pursuing technological leadership—offers a sustainable model for India’s future growth. Policies that facilitate seamless integration of these sectors will ensure that economic progress does not come at the cost of cultural and social erosion. The coming decade will be defined by how effectively India manages this transition, ensuring that innovation enhances rather than disrupts the nation’s heritage-driven industries.
Ultimately, India’s strength lies in its ability to adapt without abandoning its roots. The Union Budget 2025-26 underscores a commitment to both legacy industries and next-generation enterprises, fostering an economy that is inclusive, dynamic, and future-ready. With effective execution, these policies will position India as a formidable global economic force, transforming the aspiration of Viksit Bharat into a tangible reality.
The writer is a BJP leader, author and expert on economic matters. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.
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