
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.
Sector | Key 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
- Agricultural Development: The budget emphasizes agricultural productivity through innovative schemes and enhanced loan facilities aimed at supporting farmers.
- Empowerment of MSMEs: Increased financial support and tailored solutions are designed to empower small businesses and promote entrepreneurship.
- Manufacturing Growth: Significant investments are directed toward enhancing manufacturing capabilities in various sectors, particularly toys and cleantech.
- Education & Healthcare Improvements: Notable investments are planned in education technology and healthcare infrastructure to improve accessibility and quality.
- Urban & Infrastructure Development: Substantial funding is allocated for urban reforms and infrastructure projects aimed at improving living standards.
- 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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