Budget 2025 Highlights

Here are the key highlights of the Budget 2025-26 Speech by Nirmala Sitharaman, Minister of Finance:

1. Budget Theme & Vision

  • Focuses on accelerating growth, inclusive development, and private sector investment.
  • Aims for “Viksit Bharat”: a developed India with zero poverty, 100% quality education, affordable healthcare, skilled workforce, women empowerment, and agricultural prosperity.
  • Four key economic engines: Agriculture, MSMEs, Investment, and Exports.
  • Major reforms planned in taxation, power, urban development, mining, financial sector, and regulatory frameworks.

2. Agriculture & Rural Development

  • Prime Minister Dhan-Dhaanya Krishi Yojana: Focus on 100 districts for improved productivity, irrigation, and credit access.
  • Rural Prosperity and Resilience Programme: Job creation in rural areas through skilling, investment, and technology.
  • Mission for Aatmanirbharta in Pulses: 6-year plan focusing on Tur, Urad, and Masoor production.
  • Comprehensive Fruits & Vegetables Programme: Supports processing, supply chains, and farmer incomes.
  • National Mission on High Yielding Seeds: Developing pest-resistant and climate-resilient seed varieties.
  • Enhanced Credit through KCC: Loan limits increased from ₹3 lakh to ₹5 lakh.
  • India Post for Rural Economy: India Post to act as a logistics hub for MSMEs, women entrepreneurs, and farmers.

3. MSMEs & Manufacturing

  • New MSME classification: Investment and turnover limits enhanced by 2.5x.
  • Credit Guarantee cover increased:
    • Micro & Small Enterprises: ₹5 crore to ₹10 crore.
    • Startups: ₹10 crore to ₹20 crore.
    • Exporters: Loans up to ₹20 crore.
  • Fund of Funds for Startups: ₹10,000 crore allocated for startup funding.
  • Scheme for First-time Entrepreneurs: Loans up to ₹2 crore for SC/ST/women entrepreneurs.
  • Focus Product Scheme for Footwear & Leather: Expected to generate 22 lakh jobs, ₹4 lakh crore turnover.
  • National Manufacturing Mission: Policy support for Make in India with special emphasis on clean tech, solar, EVs, wind energy.

4. Investment & Infrastructure

  • ₹1.5 lakh crore allocation for 50-year interest-free loans to states.
  • Asset Monetization Plan 2025-30: ₹10 lakh crore for new projects.
  • Power Sector Reforms: Incentives for electricity distribution & transmission capacity.
  • Jal Jeevan Mission extended to 2028: Targeting 100% rural tap water connections.
  • UDAN Regional Connectivity Expansion: 120 new destinations, 4 crore passengers in 10 years.
  • Greenfield Airport in Bihar: Along with expansion of Patna Airport.
  • Nuclear Energy Mission: Targeting 100 GW of nuclear power by 2047; focus on Small Modular Reactors (SMR).

5. Social & Human Capital Investments

  • Atal Tinkering Labs: 50,000 labs in government schools.
  • Medical Education Expansion: 10,000 additional seats in medical colleges.
  • Day Care Cancer Centres: 200 centres in district hospitals in 2025-26.
  • PM SVANidhi Expansion: Loans for street vendors enhanced, UPI-linked credit cards introduced.
  • Gig Workers Welfare Scheme: 1 crore online platform workers to receive healthcare benefits.
  • Expansion of IITs & Skilling Centres: New AI Centre of Excellence for Education.
  • National Geospatial Mission: Enhancing land records, urban planning, and infrastructure projects.

6. Exports & Global Trade

  • Export Promotion Mission: Strengthening MSMEs in international trade.
  • BharatTradeNet (BTN): A digital trade platform for documentation & finance.
  • Warehousing for Air Cargo: Support for high-value perishable exports.
  • Tourism Development: Focus on top 50 destinations, spiritual tourism, and medical tourism.

7. Tax Reforms

  • Personal Income Tax Slabs Revised (New Regime)
    • Income up to ₹12 lakh: No tax.
    • ₹12.75 lakh for salaried class: No tax due to standard deduction.
    • New 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 Rationalization:
    • Senior Citizens: Interest exemption limit increased from ₹50,000 to ₹1 lakh.
    • Rent TDS threshold increased from ₹2.4 lakh to ₹6 lakh.
    • TCS on remittances under LRS increased from ₹7 lakh to ₹10 lakh.
  • Corporate & Investment Reforms:
    • FDI in Insurance raised from 74% to 100%.
    • NaBFID Credit Enhancement for Infrastructure Bonds.
    • Pension Reforms: New pension products and expanded KYC registry.

8. Customs & GST Changes

  • Customs Duty Rationalization: Reduction in tariffs for critical minerals, electronics, and manufacturing inputs.
  • Increased Duty on Electronics:
    • Interactive Flat Panel Display: 10% to 20%.
    • Knitted fabrics: 10% to 20%.
  • Export Incentives for Handicrafts & Leather:
    • Leather exports fully exempted from 20% duty.
    • Marine Products Export duty lowered.

9. Fiscal Policy & Borrowing

  • Fiscal Deficit Target: 4.4% of GDP for 2025-26.
  • Net Tax Revenue Estimate: ₹28.37 lakh crore.
  • Market Borrowings: ₹11.54 lakh crore.

Conclusion

The Budget 2025-26 emphasizes economic growth, infrastructure expansion, MSME support, social investments, and tax relief for the middle class while maintaining fiscal discipline.