Union Budget 2025: Key Highlights And Major Announcements

On February 1, 2025, India's Finance Minister Nirmala Sitharaman presented the Union Budget 2025, outlining key measures aimed at stimulating economic growth and providing relief to the middle class. The Union Budget 2025 is an annual financial statement presented in Parliament, detailing the government's estimated revenue and expenditure for the fiscal year 2025-26 (April 1 to March 31). It serves as a roadmap for India's economic policy, addressing national priorities such as economic growth, infrastructure development, welfare schemes, and fiscal management.

Key Highlights of the Union Budget 2025

Direct tax

1. Union Budget 2025 brings big relief as no personal income tax is payable on income up to ₹12 lakh (₹1 lakh/month) under the new tax regime, excluding special rate income like capital gains.
2. For salaried taxpayers, this limit increases to ₹12.75 lakh, considering the standard deduction of ₹75,000.
3. The new structure under the Indian Budget 2025 significantly reduces middle-class tax burdens, ensuring more disposable income for household consumption, savings, and investment..
4. A new Income-Tax Bill will simplify taxation with clearer and more direct provisions, enhancing taxpayer understanding and reducing litigation.
5. Despite these tax cuts, the government is set to forgo nearly ₹1 lakh crore in direct tax revenue, reflecting its commitment to fiscal reforms in Budget 2025.

Indirect tax

1. Union Budget 2025 includes the rationalisation of customs tariff structures for industrial goods to improve efficiency and competitiveness.
2. As part of Budget 2025 initiatives, the government has announced exemptions on open cells for LED/LCD TVs, looms for textiles, and capital goods for lithium-ion batteries used in mobile phones and EVs under the Make in India program.
3. The Indian Budget 2025 promotes the MRO sector with a 10-year exemption on goods for shipbuilding and ships for breaking and extends the time limit for the export of railway goods imported for repairs..
4. In line with the Budget 2025 provisions, export promotion measures include duty-free inputs for the handicraft and leather sectors to enhance competitiveness.
5. Union Budget 2025 brings significant trade facilitation reforms, including the introduction of a time limit for the finalisation of provisional assessments, a new provision for voluntary declaration of material facts post-clearance with interest but without penalties, and amendments to the IGCR Rules to extend the time limit to one year while filing quarterly statements instead of monthly.

Agriculture

1. Budget 2025 facilitates short-term loans for 7.7 crore farmers, fishermen, and dairy farmers with an enhanced loan amount of ₹5 lakh.
2. Union Budget 2025 introduces the Prime Minister Dhan-Dhaanya Krishi Yojana under the Developing Agri Districts Program, aimed at covering 100 districts and benefitting 1.7 crore farmers.
3. A 5-year mission under the Indian Budget 2025 to facilitate improvements in productivity and sustainability of cotton farming..
4. Union Budget 2025 outlines the targeted development and propagation of high-yield, pest-resistant, and climate-resilient seeds.
5. Budget 2025 will support the setting up of initiatives to improve production, processing, value addition, and marketing through the organization of FPOs.
6. Union Budget 2025 launches a 6-year mission with a special focus on Tur, Urad, and Masoor.

MSMEs

1. Union Budget 2025 introduces a revision in the classification criteria for MSMEs to support their growth and development.
2. Budget 2025 allocates provisions for customized credit cards with a ₹5 lakh limit for microenterprises registered on the Udyam portal. In the first year, 10 lakh such cards will be issued.
3. As part of the Indian Budget 2025, a new scheme will be launched to provide term loans up to ₹2 crore for 5 lakh first-time entrepreneurs, including women, Scheduled Castes, and Scheduled Tribes, over the next 5 years..
4. The Union Budget 2025 includes a significant enhancement in credit availability with guarantee cover to support MSMEs and businesses across sectors.
5. Budget 2025 introduces measures aimed at boosting labor-intensive sectors such as Footwear, Toys, and Food Processing.

1. Union Budget 2025 emphasizes the Saksham Anganwadi and Poshan 2.0 initiative to improve child nutrition and maternal health.
2. Budget 2025 allocates funding for the expansion of capacity in IITs, boosting India's education infrastructure.
3. As part of the Union Budget 2025, Day Care Cancer Centres will be established in all district hospitals for better healthcare access..
4. Indian Budget 2025 introduces the Bharatiya Bhasha Pustak Scheme, providing digital Indian language books for school and higher education.
5. The Union Budget 2025 sets aside resources for the establishment of 05 National Centres of Excellence for skilling, with global expertise and partnerships.
6. In line with Budget 2025, 50,000 Atal Tinkering Labs will be set up in government schools over the next five years to foster innovation.
7. Union Budget 2025 outlines the creation of a Centre of Excellence in Artificial Intelligence for education, with an outlay of ₹500 crore.
8. As part of Budget 2025, broadband connectivity will be provided to all government secondary schools and primary health centers in rural areas.
9. Union Budget 2025 supports the expansion of medical education, adding 10,000 new seats with a goal of 75,000 additional seats in the next five years.
10. The Indian Budget 2025 proposes the revamping of PM SVANidhi, with enhanced loans, UPI-linked credit cards, and capacity-building support for street vendors.
11. Union Budget 2025 ensures the welfare of online platform workers, with registration on the e-Shram portal and healthcare under PM Jan Arogya Yojana.

1. The Budget 2025 sets sectoral and ministerial goals to make it easier for small and medium-sized businesses to get export credit and cross-border factoring support, as well as to deal with non-tariff measures in foreign markets.
2. The Union Budget 2025 proposes setting up a digital public infrastructure, ‘BharatTradeNet’ (BTN), for international trade, creating a unified platform for trade documentation and financing solutions, along with support for integration into Global Supply Chains.
3. As part of Budget 2025, guidance is provided to states for promoting Global Capability Centres in emerging tier-2 cities, aiming to enhance India's position in global business..
4. The Union Budget 2025 focuses on facilitating the upgradation of infrastructure and warehousing for air cargo, including high-value perishable horticulture produce, to boost exports and logistics efficiency.

Rs. 4.49 lakh crore is allocated for the welfare of women and girls in the gender budget statement of FY 2025-26, an increase of Rs. 37.25% over the gender budget allocation of Rs. 3.27 lakh crore in FY 2024-25.

The Union Budget 2025 focuses on growth, infrastructure, and social welfare, aiming to boost India's economy. With allocation for capital expenditure, the budget drives job creation, industrial growth, and urban development. Key initiatives will stimulate rural and urban economies. Tax incentives for MSMEs, reduced stamp duties, and transit-oriented development will boost investments and real estate. Enhanced focus on self-sufficiency in oilseeds and pulses supports food security. With fiscal consolidation efforts, the government targets strong GDP growth while keeping inflation in check. This budget sets the stage for a resilient, inclusive, and self-reliant economy.

The Union Budget 2025 incorporates several targeted measures to uplift the poor, youth, farmers, and women—key segments of India's population. Through increased investment in social welfare, skills development, agriculture, and women’s empowerment, the budget aims to create an inclusive and equitable growth model, with an emphasis on providing better opportunities for these groups.

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