K. Paul Thomas

K. Paul Thomas, MD & CEO, ESAF Small Finance Bank

The Finance Minister’s emphasis on inclusive development in the Union Budget 2025-26, similar to the Government’s focus, clearly articulating ‘Inclusivity’ as the guiding principle, is highly welcome.

Initiatives such as the Grameen Credit Score, the enhancement of the KCC loan limit from ₹3 lahks to ₹5 lahks, and the introduction of Credit Cards for Micro Enterprises are key announcements that advance the cause of inclusivity. Digital Public Infrastructure receives a boost with the announcement of ‘BharatTradeNet’ (BTN) for international trade, which will serve as a unified platform for trade documentation and financing solutions, along with a revamped Central KYC Registry.

The exemption of income tax on annual incomes up to ₹12 lakh is a significant benefit, empowering middle-income households and boosting disposable income in both urban and rural markets.

Therefore, the Union Budget 2025-26 not only sustains the current economic growth but also lays a strong foundation for future growth and development.