BUDGET 2025 HIGHLIGHTS
Union Finance Minister Smt. Nirmala Sitharaman presented the Union Budget 2025-26 in the Parliament on 1st February, 2025. With a focus on economic growth, social welfare, and structural reforms, this year’s budget aims to drive India’s development through four key engines: Agriculture, MSMEs, Investment, and Exports. Here are the major highlights of the budget:
BUDGET ESTIMATES 2025-26
- Total receipts (excluding borrowings): ₹34.96 lakh crore
- Total expenditure: ₹50.65 lakh crore
- Net tax receipts: ₹28.37 lakh crore
- Fiscal deficit: 4.4% of GDP
- Gross market borrowings: ₹14.82 lakh crore
- Capital expenditure: ₹11.21 lakh crore (3.1% of GDP)
AGRICULTURE – THE FIRST ENGINE OF DEVELOPMENT
Prime Minister Dhan-Dhaanya Krishi Yojana
- A program for 100 agri-districts with low productivity to benefit 1.7 crore farmers.
Rural Prosperity and Resilience
- Multi-sectoral initiative to address underemployment in agriculture by investing in skilling, technology, and rural economy development.
Missions and Schemes for Agricultural Growth
- Mission for Aatmanirbharta in Pulses: A 6-year initiative to boost domestic production of Tur, Urad, and Masoor.
- Vegetables & Fruits Programme: Enhancing production, efficient supply chains, and processing.
- National Mission on High Yielding Seeds: Developing over 100 high-yield seed varieties.
- Fisheries Development: Sustainable fisheries framework for Andaman & Nicobar and Lakshadweep.
- Cotton Productivity Mission: A 5-year plan to boost productivity and promote extra-long staple cotton.
- Enhanced Credit through KCC: Loan limit under the Modified Interest Subvention Scheme raised from ₹3 lakh to ₹5 lakh.
- Urea Plant in Assam: 12.7 lakh metric tons annual capacity plant to be set up in Namrup.
MSMEs – THE SECOND ENGINE OF DEVELOPMENT
Boosting Small Businesses and Entrepreneurship
- Enhanced MSME Classification Criteria: Investment and turnover limits raised by 2.5 and 2 times respectively.
- Customized Credit Cards for Micro Enterprises: ₹5 lakh limit for Udyam-registered businesses.
- Fund of Funds for Startups: New ₹10,000 crore fund with expanded scope.
- First-time Entrepreneur Scheme: 5 lakh women, SC, and ST entrepreneurs to get ₹2 crore term loans over 5 years.
- Focus Product Scheme for Footwear & Leather: Targeting ₹4 lakh crore turnover and ₹1.1 lakh crore exports.
- Toy Sector Development Scheme: Making India a global hub for high-quality toys.
- National Institute of Food Technology to be set up in Bihar.
- Manufacturing Mission to strengthen “Make in India”.
INVESTMENT – THE THIRD ENGINE OF DEVELOPMENT
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Investing in People
- Saksham Anganwadi & Poshan 2.0: Increased child nutrition funding.
- Atal Tinkering Labs: 50,000 new labs in government schools.
- Broadband Expansion: Connectivity for rural schools and PHCs.
- Medical & AI Education: 10,000 medical seats, ₹500 crore for AI education, and daycare cancer centers in all districts.
- Urban Livelihood: Enhanced PM SVANidhi loans, UPI-linked credit, and gig worker social security.
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Investing in the Economy
- PPP in Infrastructure: 3-year pipeline for projects.
- State Infra Support: ₹1.5 lakh crore interest-free loan for states.
- Urban & Water Development: ₹1 lakh crore Urban Challenge Fund, Jal Jeevan Mission extended.
- Energy & Transport: ₹20,000 crore for nuclear energy, ₹25,000 crore Maritime Development Fund, UDAN expansion.
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Investing in Innovation
- ₹20,000 crore for private R&D, Deep Tech Fund for startups.
- 10,000 PM Research Fellowships for tech advancement.
- Second National Gene Bank for crop preservation.
EXPORTS – THE FOURTH ENGINE OF DEVELOPMENT
- Export Promotion Mission: Inter-ministerial coordination to enhance exports.
- BharatTradeNet: A unified digital trade platform.
- National Framework for Global Capability Centres in Tier-2 cities.
FINANCIAL SECTOR REFORMS & DEVELOPMENT
- FDI in Insurance raised to 100% (for companies reinvesting in India).
- NaBFID Credit Enhancement Facility for infrastructure bonds.
- Grameen Credit Score framework for rural borrowers.
- Pension Sector Reforms: Coordinated development and new products.
- Jan Vishwas Bill 2.0: Decriminalization of 100+ regulatory provisions.
DIRECT TAX REFORMS
- Income Tax Exemption up to ₹12 lakh under the new regime.
- ₹12.75 lakh exemption for salaried taxpayers (due to ₹75,000 standard deduction).
New Income Tax Slabs:
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- ₹0-4 lakh: Nil
- ₹4-8 lakh: 5%
- ₹8-12 lakh: 10%
- ₹12-16 lakh: 15%
- ₹16-20 lakh: 20%
- ₹20-24 lakh: 25%
- Above ₹24 lakh: 30%
TDS/TCS Simplification:
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- Senior Citizen Interest Exemption: Raised from ₹50,000 to ₹1 lakh.
- TDS on rent limit raised from ₹2.4 lakh to ₹6 lakh.
- TCS threshold on LRS remittances: Increased from ₹7 lakh to ₹10 lakh.
- Decriminalization of delayed TCS payments.
Ease of Compliance:
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- Charitable trust registration extended to 10 years.
- Two self-occupied properties allowed nil annual value without conditions.
INDIRECT TAX REFORMS
- Rationalization of Customs Duty: Reduction of seven tariff rates.
- Import Relief on Medicines:
- 36 lifesaving drugs fully exempted.
- 6 critical medicines at 5% duty.
- 37 new drugs under Patient Assistance Programmes.
- Support for Domestic Manufacturing:
- Duty reductions on critical minerals and electronics components.
CONCLUSION
The Union Budget 2025-26 balances growth, welfare, and reforms while ensuring fiscal prudence. With a focus on infrastructure, MSMEs, agriculture, and technology, this budget sets the foundation for Viksit Bharat—a self-reliant and economically strong India.