Union Budget 2025: Everything You Should Know

General
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Union Budget 2025: A wrap-up
After one hour of the Union Budget 2025, it is safe to say that Indians, particularly investors and startup founders, were not disappointed. Described a budget meant to “accelerate growth” and “uplift household sentiments,” the budget addressed the concerns of the common man. “Viksit Bharat,” a project that encompasses the growth of both the citizens and the country, has laid out several milestones to achieve in the upcoming years, including:

  • Zero poverty
  • Hundred per cent skilled labour with meaningful employment
  • Hundred per cent good quality school education

The Union Budget was divided into six domains, which will augment the “growth potential” and “global competitiveness.”

  • Taxation
  • Power Sector
  • Urban Development
  • Mining
  • Financial Sector
  • Regulatory Reforms

The aim is to promote inclusiveness by enhancing the spending power of the middle class and driving economic growth through increased consumer demand.
According to the Financial Minister, “We see the next five years as a unique opportunity to realise sab ka vikas, simulating growth in all regions.” “This is also a budget for the aspirations of the GYAN (Garib, Yuva, Annadata and Nari shakti) poor farmers, women, and youth,” she continued.Sector-wise analysis
Let’s look at a sector-wise analysis of the Union Budget 2025.
Finance

  • FY25 fiscal deficit seen at 4.8% and 4.4% in FY26.
  • FY25 revised capex seen at Rs 10.18 lakh crore.
  • An asset monetisation plan to be developed to harvest Rs 10 lakh crore.
  • FDI in the insurance sector is to be raised to 100% from 74%.
  • Condition for foreign investment to be reviewed and simplified.
  • To set up a forum for Regulatory coordination of pension issues.

Infrastructure

  • The government will provide ₹1.5 lakh crore in 50-year interest-free loans to states to accelerate infrastructure development.
  • Additionally, a ₹25,000 crore Maritime Development Fund will be established to boost the sector.
  • Policy for critical minerals development to be launched.

Education

  • 50,000 Alal Tinkering Labs to be set up in schools.
  • Five national centers for skilling will be set up.
  • 10,000 fellowships for tech researchers in IITs.

Tourism

  • Top 50 tourist destinations to be developed in assistance with states.

Exports

  • Exports promotion mission with ministerial targets.
  • Easy access to export credit will be provided.

Aviation

  • New Udan Regional Connectivity Scheme.
  • Enhance regional air connectivity to 120 new destinations over 10 years.

Development of Nuclear Reactors in India

  • Rs 20,000 crore was allocated to develop small nuclear reactors in India, with an aim to generate 100 gigawatts of nuclear energy.
  • Five Indigenous small nuclear reactors to be developed by 2033.

Urban

  • To set up an Urban Challenge Fund worth Rs 1 lakh crore for new-age cities.

Healthcare

  • 10,000 seats to be added in medical colleges and hospitals in FY26.
  • To set up day-care cancer centers in all district hospitals.

MSMEs

  • To facilitate tech upgradation of MSME, a new fund of funds for startups of Rs 10,000 crore.
  • Grameen Credit Card for self-help groups. Banks to maintain credit score for the self-help group.
  • A new scheme will be launched for 5 lakh women, SC, ST. First-time entrepreneurs to get term loans up to Rs 2 crore.
  • Street vendors to get UPI-linked credit cards with a limit of Rs 30,000.
  • Social security for one crore gig workers. ID cards to be issued to gig workers to avail of government services.
  • India Post to be transformed into a large logistics organisation.

Agriculture

  • A national mission on high-yielding seeds.
  • Atmanirbharta in Urea.
  • Sustainable harnessing of fisheries with special focus on Andaman and Nicobar and Lakshadweep.
  • For the benefit of cotton farmers, a 5-year mission was announced. This will ensure a stable supply of quality cotton, says FM.
  • The loan limit will be enhanced from Rs 3L to Rs 5L for loans taken through the kissan credit scheme.
  • Makhana Board to be established in Bihar to improve production, processing, value addition, and marketing of Makhana farmers.
  • Boost agriculture growth through the adoption of crop diversification and improve irrigation facilities.
  • Announces PM Dhan Dhyan Krishi Yojana, covering 100 districts with low yields, modern crop intensity and below-average credit parameters.
  • Plans to launch a six-year mission for Atmanirbharta in pulses, with a special focus on toor and masoor.

Non-sectoral updates

  • New Income Tax Bill to be introduced next week.
  • No income tax up to Rs 12 lakh income per annum.
  • Nil tax for Rs 12.75 lakh for salaried income due to Rs 75,000 standard deduction.
  • Propose to rationalise TDS and TCS for taxpayers.
  • The tax deduction limit doubled to Rs 1 lakh for senior citizens.
  • TCS on remittances for education removed.
  • The annual TDS limit for rent raised to Rs 6 lakh from Rs 2.4 lakh.
  • Higher TDS is to be applied only for non-PAN cases.
  • TCS threshold raised from Rs 7 lakh to Rs 10 lakh.
  • Seven tariffs were removed on exports, and only eight tariff rates remained.
  • 36 life-saving drugs made duty-free.
  • Custom duty cut on Lithium batteries.
  • Tax exemption for Cobalt powder.
  • Reduced BCD from 5% to 2.5%.
  • Levy, not more than one cess on any item.

Conclusion
With new tax slabs and growth drivers, India, the fastest-growing economy, is set to emerge as a global leader in innovation. Will this help India achieve Viksit Bharat in the upcoming years? Thank you for reading. Don’t forget to share your thoughts on the Union Budget 2025 in the comments. We love reading them.

Data source: Business Standard