The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, brings Budget 2025 Highlights with major reforms in taxation, infrastructure, healthcare, and agriculture.
With a strong focus on economic growth, job creation, and social welfare, the budget aims to strengthen India’s self-reliance, ensure fiscal stability, and drive inclusive development across various sectors.
Budget 2025 Highlights
Finance Minister Nirmala Sitharaman presented the budget on February 1, 2025, marking her eighth consecutive budget presentation. This year’s budget aims to boost various sectors, including agriculture, industry, healthcare, and education, with allocations designed to provide relief to the general public and generate employment opportunities.
A crucial step towards achieving ‘Atmanirbhar Bharat’ (Self-Reliant India), this budget focuses on long-term economic growth and sustainability.
Download new tax regime 2025 pdf
Major Announcements : Budget 2025 Highlights
Tax Reforms and Relief
- New Income Tax Regime:
- Income up to ₹12 lakh: No tax
- ₹8-12 lakh: 10%
- ₹12-16 lakh: 15%
- ₹16-20 lakh: 20%
- ₹20-25 lakh: 25%
- Above ₹25 lakh: 30%
- TDS on Rent: Annual exemption limit raised from ₹2.4 lakh to ₹6 lakh.
- Senior Citizen Tax Benefits: Tax deduction limit doubled to ₹1 lakh.
- Tax for Salaried Individuals: No tax payable for income up to ₹12.75 lakh.
- Basic Exemption Limit: Income up to ₹4 lakh set at 0% under the new regime.
- New Income Tax Bill: Simplified and transparent language to ensure better compliance and accessibility.
Boost to the Gig Economy
- One crore gig workers from platforms like Swiggy, Zomato, Zepto, and Big Basket to receive ID cards for recognition and social security benefits.
- Workers to be covered under PM Jan Arogya Yojana and registered through the e-Shram portal.
Incentives for Industries and Start-ups
- Start-up Benefits: Extended for five years from inception.
- Grameen Credit Score Framework: To be established for rural areas.
- FDI in Insurance Sector: Limit raised to 100%.
- MSME Credit Guarantees: Increased from ₹5 crore to ₹10 crore.
- Export Promotion Mission: Launched to facilitate easier access to export credit.
Infrastructure and Transportation
- PPP Mode Projects: Three-year projects to be implemented through the Public-Private Partnership (PPP) model.
- Interest-Free Loans: ₹1.5 lakh crore allocated for states to develop infrastructure.
- Regional Airports: Over 100 new regional airports planned over the next decade.
- UDAN 2.0 Scheme: 120 new airports to be connected, focusing on the Northeast and Bihar.
Healthcare and Pharmaceuticals
- Daycare Cancer Centers: To be established in all district hospitals, with 200 centers planned by 2026.
- Duty on Life-Saving Drugs: 5% duty on six critical drugs; 36 drugs exempted from customs duty.
- Patient Assistance Program: Exemption from Basic Customs Duty (BCD) for pharmaceutical companies offering free medicines.
Agriculture and Rural Development
- Atmanirbharta in Oil Seeds: Six-year mission launched to boost domestic production.
- Cotton Yield Improvement: Five-year initiative started.
- Kisan Credit Card: Loan limit increased from ₹3 lakh to ₹5 lakh.
- Nutritional Support: Benefits extended to over eight crore children and one crore lactating mothers.
Education and Technology
- Atal Tinkering Labs: Expansion in schools.
- Broadband Internet: Provided to government secondary schools.
- IIT Infrastructure: Additional development planned, including IIT Patna expansion.
- Centre of Excellence in AI: ₹500 crore allocated to boost artificial intelligence research.
Economic and Fiscal Policies
- Investment-Friendly Index: Introduced to encourage state-level competition.
- Fiscal Deficit Target: Revised to 4.8% for FY 2025.
- Capital Expenditure: Set at ₹10.18 lakh crore.
- Tariff Rate Simplification: Seven tariff rates removed, leaving eight remaining.
Make in India and Sustainability Initiatives
- National Manufacturing Mission: New policy framework for industrial growth.
- Clean Technology Manufacturing: Government support for eco-friendly production.
- Nuclear Energy Mission: Focus on research and development.
- Jal Jeevan Mission: Extended until 2028 to improve water accessibility.
Women’s Empowerment
- Term Loan Scheme: Up to ₹2 crore available for first-time women entrepreneurs from SC/ST and backward communities.
Tourism and International Collaboration
- Visa Fee Waivers: Introduced for select tourist groups to boost international travel.
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Why is Budget 2025-26 Important?
The budget is a pivotal step toward strengthening the economy by focusing on key areas like tax reforms, industrial growth, healthcare, and rural development. By making strategic allocations and simplifying tax policies, the government aims to provide relief to citizens while fostering long-term financial stability.
Looking Ahead: Expected Reforms and Their Impact
- Tax Reforms: A potential increase in the basic exemption limit to ₹5 lakh and additional tax relief for senior citizens under Section 80D.
- Investment in Infrastructure: Large-scale funding for regional airports, urban development, and public transport improvements.
- Enhanced Social Security: Expanding healthcare benefits and financial support for gig workers and entrepreneurs.
The Union Budget 2025-26 lays a strong foundation for India’s economic and social progress. With targeted reforms across multiple sectors, it aims to drive growth, enhance financial inclusion, and improve the quality of life for all citizens.
Stay tuned for further updates and access the official budget document for in-depth details on all announcements.
