Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 in Parliament, outlining a comprehensive roadmap for India’s economic growth, social welfare, and global competitiveness. The budget, themed “Empowering India: Inclusive, Sustainable, and Innovative Growth,” focuses on empowering the middle class, boosting agriculture, supporting MSMEs, and driving technological advancements. Here are the key Union Budget 2025 highlights:
1. Tax Relief for the Middle Class Union Budget 2025 Highlights
In a significant move to provide relief to taxpayers, Sitharaman announced that individuals with an annual income of up to ₹12 lakh will not have to pay any tax. The revised tax slabs are as follows:
- ₹0-4 lakh: Nil
- ₹4-8 lakh: 5%
- ₹8-12 lakh: 10%
- ₹16-20 lakh: 20%
- ₹20-24 lakh: 25%
- Above ₹24 lakh: 30%
This restructuring is expected to benefit millions of middle-class taxpayers, with savings ranging from ₹70,000 to ₹1,10,000 depending on income levels.
2. Boost to Agriculture and Rural Economy
The budget introduced several initiatives to support farmers and enhance agricultural productivity:
- Self-Reliance in Pulses: A six-year initiative was unveiled to promote self-reliance in pulses, with a focus on tur, urad, and masoor. Nafed and NCCF will procure pulses over the next four years.
- PM Dhan Dhyan Krishi Yojana: This scheme will cover 100 districts with low yields, modern crop intensity, and below-average credit parameters, benefiting 100 crore farmers.
- Customised Credit Cards: Micro-enterprises will receive customised credit cards with a ₹5 lakh limit to support small businesses.
3. Support for MSMEs and Startups Union Budget 2025 Highlights
To strengthen the backbone of India’s economy, the budget announced:
- Enhanced Credit Guarantee Cover: The government will increase the credit guarantee cover for MSMEs, which contribute 45% of the country’s exports.
- Startup Fund: A new fund for startups will be launched with an additional ₹10,000 crore, bringing the total government contribution to ₹20,000 crore.
- Support for Women and SC/ST Entrepreneurs: A new scheme will benefit 5 lakh women and first-time entrepreneurs from Scheduled Castes and Scheduled Tribes.
4. Infrastructure and Logistics Development Union Budget 2025 Highlights
The budget emphasized infrastructure as a key driver of economic growth:
- Logistics Hub: India will be transformed into a major logistics hub by utilizing 1.5 lakh rural post offices.
- Udan Scheme Expansion: The Udan Scheme will be expanded to include 120 more destinations, improving regional connectivity.
- National Institute of Food Technology: A new institute will be established in Bihar to promote food technology and entrepreneurship.
5. Healthcare and Education Reforms
The budget prioritized healthcare and education to ensure inclusive development:
- Medical College Seats: 10,000 new seats will be added to medical colleges next year, with a further 75,000 seats over the next five years.
- AI in Education: A Centre for Excellence in AI will be established with an allocation of ₹500 crore to revolutionize education.
- Internet Connectivity: All government schools and hospitals will be provided with internet connectivity.
6. Green Energy and Sustainability
Aligned with India’s commitment to achieving net-zero emissions by 2070, the budget focused on green energy:
- Nuclear Energy Mission: A ₹20,000 crore outlay was announced for the research and development of small modular reactors.
- Urea Plant: A new urea plant with a capacity of 12.7 lakh tonnes will be established in Assam.
7. Financial Sector Reforms Union Budget 2025 Highlights
The budget introduced several reforms to strengthen the financial sector:
- FDI Limit Increase: The FDI limit in the insurance sector was raised from 74% to 100%.
- Reduced NPAs: Gross non-performing assets (NPAs) in the banking system declined to a 12-year low of 2.6%, reflecting the robustness of the economy.
8. Focus on Women and Youth
The budget emphasized empowering women and youth:
- Rural Prosperity Programme: A new programme will focus on youth, women, and farmers to drive rural development.
- Skill Development: The government will train 1 crore youth in emerging technologies like AI, robotics, and cybersecurity.
9. Economic Survey Insights
The Economic Survey 2024-25, tabled a day before the budget, projected GDP growth between 6.3% and 6.8% for the upcoming fiscal year. It highlighted key achievements, including:
- Decline in NPAs: Gross NPAs in the banking system fell to 2.6%, the lowest in 12 years.
- Construction Boom: The construction sector grew 15% above pre-pandemic levels, showcasing robust economic activity.
10. Vision for Viksit Bharat 2047
The budget aligns with the government’s vision of Viksit Bharat by 2047, which requires:
- 8% Annual Growth: Sustained economic growth to achieve developed nation status.
- 35% Investment Rate: Increased investment in infrastructure, manufacturing, and technology.
- Focus on AI and Biotechnology: Expansion in cutting-edge sectors like AI, robotics, and biotechnology.
Viksit Bharat Aim of Union Budget 2025
The Budget 2025 reflects the government’s commitment to inclusive growth, economic resilience, and global competitiveness. By focusing on tax relief, agricultural reforms, MSME support, and technological advancements, the budget aims to empower every section of society while laying the foundation for a $5 trillion economy. As India navigates global uncertainties, this budget serves as a beacon of hope and progress, driving the nation toward its vision of Viksit Bharat by 2047.
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