New Delhi: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 on February 1, unveiling a series of measures aimed at boosting economic growth, providing tax relief, and strengthening key sectors. The Budget emphasizes infrastructure development, tax benefits for the middle class, support for MSMEs and startups, and investment in green energy. Here are the top 10 takeaways from Budget 2025:
1. Major Tax Relief: No Income Tax Up to ₹12 Lakh
In a big relief to taxpayers, no income tax will be payable on annual income up to ₹12 lakh under the new tax regime. Salaried taxpayers will have an effective exemption limit of ₹12.75 lakh, factoring in a ₹75,000 standard deduction. This move is expected to benefit the middle class by increasing disposable income.
2. Record Capital Expenditure Allocation
The government has increased capital expenditure to ₹11.5 lakh crore, a 15% rise from the previous year. The funds will be directed toward large-scale infrastructure projects, including highways, railways, and urban connectivity, driving economic expansion.
3. Boost for MSMEs and Startups
To encourage entrepreneurship, tax incentives for startups have been extended until March 31, 2026. A ₹50,000 crore Credit Guarantee Scheme has been introduced to provide financial support for MSMEs, while compliance requirements for small businesses have been simplified.
4. Renewable Energy & Sustainability Focus
A massive ₹2 lakh crore has been allocated for green energy projects, promoting investments in solar, wind, and hydrogen energy. Additionally, new incentives for electric vehicle (EV) manufacturers have been introduced to accelerate India’s transition to clean energy.
5. Healthcare & Pharmaceuticals Expansion
The healthcare sector has received ₹1.2 lakh crore, focusing on strengthening medical infrastructure, vaccine research, and disease prevention programs. Additionally, customs duty on 36 life-saving medicines has been exempted to lower the cost of essential drugs.
6. Agriculture and Rural Development Support
The government has earmarked ₹3 lakh crore for the agriculture sector to enhance food security and boost farmer incomes. The Minimum Support Price (MSP) for key crops has been increased, and special initiatives for organic farming and irrigation projects have been launched.
7. Digital India & AI Expansion
A ₹1 lakh crore Digital Innovation Fund has been set up to promote AI, blockchain, and fintech startups. The budget also includes provisions for expanding 5G networks, improving digital banking infrastructure, and incentivizing semiconductor and electronics manufacturing.
8. Indian Railways & Urban Development
Indian Railways has been granted ₹3.5 lakh crore for modernization, high-speed rail projects, and new Vande Bharat trains. Additionally, the metro expansion in key cities is expected to improve urban mobility and connectivity.
9. Strengthening Manufacturing & ‘Make in India’
The Production Linked Incentive (PLI) scheme has been extended to encourage domestic production in electronics, textiles, and automobile sectors. Custom duty exemptions on raw materials for key industries will further boost local manufacturing and exports.
10. Women & Social Welfare Initiatives
Increased support for women entrepreneurs and self-help groups has been announced under the PM Mudra Yojana. The PM Awas Yojana has been allocated ₹1 lakh crore to promote affordable housing. Additional funds have been earmarked for education, skill development, and employment generation for youth.
With a clear focus on economic growth, infrastructure, digital transformation, and social welfare, the Union Budget 2025 lays out a roadmap for India’s long-term development. The Budget aims to accelerate India’s progress toward becoming a $5 trillion economy while maintaining fiscal discipline.
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