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

1. 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.

2. 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.

3. 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:

• • ₹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:

• • 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:

• • 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.