India’s Union Budget this year is not just playing the traditional role of outlining financial policy and offering guidance for the coming fiscal cycle. It is a blueprint for the nation’s future. It recognises the tremendous power of its young population. The finance minister’s deliberate emphasis on Yuva Shakti-driven growth in the budget speech signals a strategic shift toward building on the demographic strength as a core engine of economic expansion.
India’s demographic dividend meets policy intent
India today stands on the threshold of becoming one of the world’s top three economies. This audacious goal is supported by the demographic advantage we, as a nation, have, which few nations possess. India has a predominantly young population entering its most productive years in the near future. As millions of young Indians enter the workforce, there is an immense opportunity to ensure that this demographic dividend is effectively converted into productive capacity. The budget acknowledges this imperative and places strong emphasis on initiatives that promote upskilling, employment generation, and entrepreneurial support. Skill development remains the cornerstone of the AtmaNirbhar Bharat vision.
Equally important is the emphasis on entrepreneurship. Young Indians are increasingly interested in innovative and entrepreneurial startups and small businesses, viewing them as viable career paths. The budget supports entrepreneurial aspirations and the economy as a job creator. These entrepreneurial aspirations have to be supported by the right ecosystem, with access to funding, mentorship, infrastructure, and regulatory ease. Youth-led enterprises can stimulate local economies, foster innovation, and generate employment at scale.
Why credit access will define youth aspirations
This journey toward sustained economic growth is deeply interlinked with robust financial management. Availability and accessibility to credit are foundational and critical enablers for this. Whether it is a young professional seeking an education loan, a first-time homebuyer, or an aspiring entrepreneur launching a business, access to timely and affordable credit lays the foundation for ambitions to be realised.
This evolving landscape presents both an opportunity and a responsibility to the lenders. As today’s youth are digital natives, they expect seamless, intuitive financial experiences. Thus, making customer journeys easy and frictionless is not an option; it is a necessity for the business. However, financial institutions must ensure that this journey from digital onboarding to instant approvals leverages technology to deliver convenience without compromising due diligence. The other aspect is prudent financial risk management, as responsible lending requires an accurate assessment of creditworthiness. Building the right balance between speed and risk depends heavily on the intelligent use of data and analytical tools.
Over the past two decades, India has made remarkable progress in building a strong credit infrastructure. Credit bureaus are building AI-ML-led data analytics, which have enabled lenders to move toward data-led, insight-driven decision-making. This shift towards enhanced transparency, reduced information asymmetry, and expanded credit access to individuals and small business owners who may previously have been excluded from formal financial systems is the foundation for future economic growth.
From credit infrastructure to financial capability
Today, credit bureaus are not just support functions for lenders’ risk evaluation; their data has value beyond risk evaluation. It has empowered lenders to design more personalised financial products, implement risk-based pricing and broaden lenders’ reach to deeper borrower segments. For young borrowers, many of whom are new to credit, this ecosystem creates pathways to establish financial identities and build credible histories early in life. Bureaus have not just built the infrastructure for robust risk assessments; they also actively participate in credit education as it accompanies credit access. This budget emphasises capability building, and in this context, promoting financial literacy becomes a foundational priority.
Young consumers need to understand not only how to access credit but also how to manage it responsibly. Awareness about repayment discipline, credit scores, borrowing limits, and long-term financial planning enables them to make prudent decisions that safeguard their financial futures. Driving education and awareness is therefore integral to the broader objectives of the lending ecosystem, credit bureaus and financial institutions alike. When youth are financially informed, they are better positioned to leverage opportunities without falling into debt traps. Responsible borrowing strengthens the entire financial ecosystem by improving asset quality and fostering trust between lenders and borrowers.
This budget focuses on Yuva Shakti, which reflects a forward-looking philosophy of economic progress. It underlines the importance of inclusive, sustainable economic growth rooted in human potential. By aligning skill development, entrepreneurship, credit infrastructure, and financial literacy, India is laying the plinths for a resilient growth trajectory. As the nation advances toward our aspiration of global economic leadership, the empowerment of our youth will remain the decisive factor. With the right policies, supportive financial frameworks, and a commitment to education, India is not merely planning for the next fiscal year; it is investing in a future defined by innovation, productivity, and shared prosperity.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or professional advice. While every effort has been made to ensure accuracy, readers should verify details independently and consult relevant professionals before making financial decisions. The views expressed are based on current industry trends and regulatory frameworks, which may change over time. Neither the author nor the publisher is responsible for any decisions based on this content.
Sachin Seth, Regional Managing Director, CRIF India & South Asia
