New Delhi, Feb 3 (PTI) – Economic Affairs Secretary Ajay Seth on Monday called upon India Inc to ramp up investment in Research and Development (R&D) and make full use of the ₹20,000 crore fund announced in the Union Budget 2025-26. Speaking at a post-Budget interaction with members of the Confederation of Indian Industry (CII), Seth emphasized the need for quality proposals to ensure the efficient allocation of the fund.
"Can we work towards a scenario where, before the end of the year, there are good quality proposals to utilize the entire amount?" he posed to the industry leaders.
The fund, allocated under the Department of Science and Technology, aims to foster private sector-led innovation. Union Finance Minister Nirmala Sitharaman had announced the ₹20,000 crore allocation as part of the implementation of a larger ₹1 lakh crore R&D fund unveiled in the previous Budget.
Seth also highlighted the necessity of private sector participation in India's energy transition, including collaborations in nuclear energy.
Budget Measures to Spur Economic Growth
Chief Economic Adviser (CEA) V. Anantha Nageswaran underscored that the Budget 2025-26 is designed to boost economic growth by strengthening domestic manufacturing and demand, particularly in light of global geopolitical and economic uncertainties."The current state of the world, in terms of geopolitical and geoeconomic uncertainties, has guided many of the proposals in the Budget, including the widely discussed tax cut," Nageswaran noted.
One of the key Budget provisions includes significant income tax cuts aimed at boosting consumer spending. Under the new tax regime, individuals earning up to ₹12.75 lakh annually will be exempt from paying income tax, benefiting around one crore taxpayers. Salaried individuals with incomes up to ₹12.75 lakh will enjoy zero tax liability due to a standard deduction of ₹75,000.
Nageswaran pointed out that these tax incentives could encourage higher consumer spending, prompting private companies to expand capacity and accelerate capital expenditure, which has been growing at a slower-than-expected pace.
With a strong push toward R&D, private sector-driven innovation, and fiscal policies supporting the middle class, the Budget 2025-26 sets the stage for sustained economic momentum amidst global headwinds.
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