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Comprehensive Overview of the Union Budget 2025

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Comprehensive Overview of the Union Budget 2025

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduces a wide range of initiatives aimed at fostering growth across various sectors of the Indian economy. Below is a detailed summary of all the key highlights, organized into a table for clarity.

SectorKey Initiatives
Agriculture– Launch of Prime Minister Dhan Dhanya Krishi Yojana (PMDDKY) for improved productivity and irrigation.
– 1.7 crore farmers to benefit from this scheme.
– A 6-year mission for self-reliance in pulses, focusing on tur and masoor.
– Enhanced agricultural loans under KCC increased from ₹3 lakh to ₹5 lakh for interest subvention.
Micro, Small, and Medium Enterprises (MSMEs)– Increased loan guarantees for micro-entrepreneurs.
– 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 fund of ₹10,000 crore for startups, benefiting 5 lakh women and SC/ST entrepreneurs through a 2 crore term loan scheme.
Manufacturing– Major push in footwear and leather industries; India aims to become a global hub for toy manufacturing.
– National Manufacturing Mission to provide policy support to states and ministries, focusing on cleantech, solar energy, EV batteries, motors, controllers, and grid-scaled batteries.
Education– Introduction of AI in education with an allocation of ₹500 crores.
– Additional infrastructure in the five IITs established post-2014 to accommodate 6,500 more students, with special mention of IIT Patna.
Healthcare– Establishment of 200 daycare cancer centers in district hospitals over the next three years (2025-26).
Water Supply– Continuation of the National Jal Jeevan Mission to ensure everyone has access to running water.
Nuclear Energy– Changes in civil liability laws for nuclear energy; plans for five indigenous Small Modular Reactors (SMRs) with an investment of ₹20,000 crore by 2033.
Urban Development– Allocation of ₹1 lakh crore for urban sector reforms.
– Expansion of shipbuilding clusters and maritime development with ₹25,000 crore allocated; private sector expected to contribute half of this amount.
– UDAN scheme enabling connectivity for 1.5 crore middle-class people across 88 airports with plans to expand to 120 new destinations.
Housing– SWAMI scheme: 50,000 dwelling units completed with another 40,000 planned; establishment of SWAMI Fund II with ₹15,000 crore.
Tourism– Development of top 22 tourism destinations in partnership with states to promote employment-led growth.
Geospatial Data– Launch of a national geospatial mission to modernize land records with spatial data development.
Export Promotion– Launch of an Export Promotion Mission with sectorial and ministerial targets; digital public infrastructure for international trade will be set up for financing solutions.
Taxation– New income tax code proposed next week; simpler tax processes aimed at reducing litigation.
– TDS threshold increased from ₹50,000 to ₹1 lakh for senior citizens.
– No income tax for individuals earning up to ₹12 lakh.
– TDS threshold limit for rent increased to ₹6 lakh.
– TCS on LRS raised from ₹7 lakh to ₹10 lakh; TCS on remittance for education removed when taken from specified financial institutions.
– Exemption on withdrawals made under National Savings Scheme (NSS) accounts from tax.
– Proposal to extend the period of incorporation for startups to five years.
Fiscal Management– Revised fiscal deficit estimate for FY25 at 4.8% of GDP; budget receipts projected at ₹35 lakh crore and expenditures at ₹50 lakh crore for FY26.

Summary of Key Themes

  1. Agricultural Development: The budget emphasizes agricultural productivity through innovative schemes and enhanced loan facilities aimed at supporting farmers.
  2. Empowerment of MSMEs: Increased financial support and tailored solutions are designed to empower small businesses and promote entrepreneurship.
  3. Manufacturing Growth: Significant investments are directed toward enhancing manufacturing capabilities in various sectors, particularly toys and cleantech.
  4. Education & Healthcare Improvements: Notable investments are planned in education technology and healthcare infrastructure to improve accessibility and quality.
  5. Urban & Infrastructure Development: Substantial funding is allocated for urban reforms and infrastructure projects aimed at improving living standards.
  6. Tax Reforms & Fiscal Responsibility: Simplification of tax codes aims to ease compliance burdens while maintaining fiscal responsibility.

The Union Budget 2025 is positioned as a comprehensive roadmap towards inclusive growth, aiming to uplift various sectors while ensuring sustainable economic development in the coming years.

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