The Union Budget 2025 introduces transformative reforms across multiple sectors, setting the stage for significant economic growth over the next five years. Below are the key highlights:
- Transformative Reforms in 6 Key Sectors
- Power – Incentivizing inter-state and distribution sector reforms.
- Mining – Enhancing efficiency and sustainability.
- Urban Development – Expanding water sector initiatives.
- Financial Sector – Strengthening banking and credit systems.
- Regulatory Reforms – Simplifying processes to boost ease of doing business.
- Taxation – Introducing a new tax bill next week with rationalized taxation policies.
2. Agriculture and Rural DevelopmentDhan Dhanya Krishi Yojna
- Kisan Credit Card limits increased from ₹3 lakh to ₹5 lakh for farmers and fishermen.
- A six-year mission for pulses launched.
- Phase 1 of the Agri plan to cover 100 districts with low productivity.
3. MSMEs & Startups Support
- Focus on 5.7 crore MSMEs with increased loan guarantees.
- Loans to startups in 27 focus sectors at 1% guarantee fees.
- Term loans up to ₹20 crore for export MSMEs.
- Customized credit cards for Udyam-registered MSMEs.
- A new ₹10,000 crore fund-of-funds for startups.
- Credit guarantee cover increased from ₹2 crore to ₹5 crore for MSMEs.
- Startups’ credit guarantee increased from ₹10 crore to ₹20 crore.
- Micro-enterprise credit card limit set at ₹5 lakh.
- National Manufacturing Mission for MSMEs focusing on clean tech manufacturing.
4. Industry and Trade Developments
- Toy Industry – Development of clusters to make India a global hub.
- Footwear & Leather Sector Scheme – Expected to generate 22 lakh jobs and ₹4 lakh crore investment.
- Shipbuilding Financial Assistance Policy – Revamped for better competitiveness.
- Maritime Development Fund – ₹20,000 crore allocated.
5. Education and Healthcare
- Broadband connectivity for all secondary schools.
- Digital Indian language books to help students understand subjects in their native languages.
- Expansion of IITs (post-2014) to accommodate 6,500 more students.
- 10,000 additional medical seats in the next five years.
- ₹500 crore allocated for AI in education.
- Daycare centers for cancer treatment in all districts within three years.
6. Infrastructure and Urban Development
- ₹1.5 lakh crore interest-free loans for states focusing on infrastructure and capex.
- Urban Challenge Fund – ₹1 lakh crore to redevelop cities and improve water sanitation.
- Jal Jeevan Mission extended to 2028 for 100% coverage.
- Greenfield airports in Bihar.
- Udaan Scheme – 120 new destinations, aiming for 4 crore additional passengers in 10 years.
- Geo-spatial Mission – Modernizing land records and urban planning.
- Affordable housing – 40,000 units to be completed in FY26.
7. Energy & Sustainability
- Nuclear Energy Mission – Indigenous Small Modular Reactors (SMRs) with 100GW development.
- Relaxed nuclear power liability clauses.
- Full customs duty exemption on Lithium-ion batteries to boost EV manufacturing.
8. Employment & Social Welfare
- Gig workers to get registration, ID, and insurance coverage.
- GCCs in Tier-2 cities to boost employment and foreign investments.
9. Financial Sector and Fiscal Measures
- Insurance FDI limit increased from 74% to 100%.
- Fiscal Deficit at 4.8% of GDP for FY25, targeted at 4.4% for FY26.
- Debt-to-GDP ratio set on a declining path.
10. Taxation and Fiscal Policies
- No tax on income up to ₹12 lakh.
- TDS on rent threshold increased to ₹6 lakh.
- Senior citizen tax deduction increased to ₹1 lakh (from ₹15,000).
- TDS and TCS (NSE:TCS) rationalized at source.
- Time limit to file IT returns extended to 5 years (from 2 years).
- 1% maximum cess surcharge – Removal of 82 items under cess surcharge.
- 36 life-saving drugs fully exempted from basic duties.
- Frozen fish feed BCD reduced from 30% to 5%.
- Customs duty exemption on raw materials for shipbuilding extended for 10 years.
The Union Budget 2025 aims to drive sustainable economic growth, strengthen financial inclusion, and promote technological innovation across multiple industries.