Introduction
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, lays out a strategic roadmap for economic growth, tax reforms, and infrastructural advancements. With a focus on middle-class relief, domestic manufacturing, and digital transformation, this budget aims to strengthen India’s economic resilience while ensuring fiscal stability. Here’s a deep dive into the key announcements and their impact.
Major Tax Reforms and Incentives
1. Income Tax Relief
- Individuals earning up to ₹12 lakh under the new tax regime are exempt from income tax.
- Revised tax slabs benefit the middle class, encouraging higher savings and consumption.
2. TDS and TCS Adjustments
- The TDS threshold on interest for senior citizens has increased from ₹50,000 to ₹1 lakh.
- TDS on rental income raised from ₹2.4 lakh to ₹6 lakh, reducing compliance burdens.
3. Customs Duty Rationalization
- Full exemptions on critical minerals and lifesaving drugs.
- Revised customs duty structure supports domestic manufacturing and export competitiveness.
Sector-Specific Allocations
4. Healthcare & Medical Infrastructure
- ₹98,311 crore allocated for medical infrastructure expansion.
- 200 daycare cancer centers to be set up in district hospitals.
5. Defence Modernization
- 75% of the defence capital budget allocated for domestic procurement.
- Increased funding for R&D to boost indigenous defence manufacturing.
6. Agriculture & Rural Economy
- ₹1.52 trillion allocated for agriculture, focusing on farmers’ income growth.
- PM Dhan Dhanya Krishi Yojana to benefit 1.7 crore farmers.
7. MSMEs & Startups
- Credit guarantees increased from ₹5 crore to ₹10 crore for small businesses.
- Micro-enterprise credit cards introduced to support new entrepreneurs.
8. Maritime Sector Development
- ₹25,000 crore Maritime Development Fund for shipbuilding & port infrastructure.
9. Education & AI Innovation
- AI and technology hubs to be established for research and skill development.
- Increased financial incentives for startups and innovation centers.
Infrastructure & Digital Economy
10. Railway Expansion
- Major allocation for modernizing railway infrastructure.
- Plans to introduce 400 new Vande Bharat trains in the next two years.
11. Water Resources & Sustainability
- ₹74,226 crore allocated for water conservation and rural tap water connections.
- Focus on expanding the Jal Jeevan Mission.
12. Digital India Push
- Strengthening digital infrastructure and cybersecurity.
- Startup-friendly tax incentives to boost the digital economy.
Social Welfare & Economic Strategy
13. Gig Workers & Labour Reforms
- E-Shram portal registration for gig workers.
- PM Jan Arogya Yojana health coverage extended to 1 crore gig workers.
14. Fiscal Deficit Management
- Projected fiscal deficit of 4.4% of GDP for FY 2025-26.
- Aiming for economic growth while maintaining fiscal responsibility.
Social Welfare & Economic Strategy
13. Gig Workers & Labour Reforms
- E-Shram portal registration for gig workers.
- PM Jan Arogya Yojana health coverage extended to 1 crore gig workers.
14. Fiscal Deficit Management
- Projected fiscal deficit of 4.4% of GDP for FY 2025-26.
- Aiming for economic growth while maintaining fiscal responsibility.